Stripe is laying off roughly 14% of its staff, online banking startup Chime is cutting 12% of the workforce, Lyft will cut staff by 13% and Opendoor slashed 18% of its headcount.
Meanwhile, big tech firms like Alphabet, Amazon and Meta have paused hiring over the past few months amid skyrocketing inflation, Fed’s rate hikes and the war between Russia and Ukraine.
Apple is not behind as the company recently announced a hiring freeze in most departments.
Up until October, more than 780 companies had cut their workforce to some extent this year, according to data tracker layoffs.fyi.
Why?
After boasting of enormous growth in this past decade, tech companies can see a long and unforgiving recession on the horizon. More than 90% of CEOs believe a recession is coming, per KPMG. Companies believe the new economic outlook means taming growth and cutting back on spending to reduce costs however they can.
Twitter is not behind
Twitter sent a memo to its employees Thursday announcing that the microblogging platform will begin layoffs Friday, per The Washington Post.
"In an effort to place Twitter on a healthy path, we will go through the difficult process of reducing our global workforce on Friday," the email read.