Tech Layoffs: Over 32,000 tech workers lost their jobs in July as mass layoffs hit the tech sector

By Nickie Louise

Last week, we wrote about tech startups struggling to raise new funds due to the global economic downturns and other macro events such as inflation, the Russia-Ukraine war, and the rising interest rates. But there is a bigger problem facing the entire tech sector

Last month, Tesla let go of more than 200 employees from its autopilot unit. The electric car giant also closed its San Mateo, California office. Tesla CEO Elon Musk also added that the company would lay off around 3.5% of Tesla’s overall workforce, adding the actual amount was “not super material.”

Tesla is not alone. Coinbase laid off 1,100 employees, about 20 percent of its total workforce as tech companies prepare for a recession and crypto winter. The crypto exchange company also went as far as rescinding job offers from new hires.

According to the latest tally from CrunchBase, a platform for finding business information about private and public companies, more than 32,000 tech employees have been laid off as of July. More tech companies are also planning to trim their workforces to counter market challenges amid the global economic downturn.

The mass layoff has also spread to big tech companies like Amazon and Facebook. Last week, Shopify also joined the ranks of tech companies laying off employees. The Canada-based company said that it was cutting 10% of its workforce.

During its quarterly earnings call last Thursday, Amazon said it let go of 100,000 employees in the last three months, joining Netflix and Google in a hiring slowdown. The retail giant said it overstaffed after ramping up during the pandemic and needed to cut back.

Meanwhile, LinkedIn Principal Economist Guy Berger said the ongoing tech layoffs and hiring freezes stems from a so-called boomerang effect. In an interview with Yahoo Finance, Berger said:

“Tech just kept hiring, just kept rising and rising and rising, at least to the end of last year, and now it’s coming down much faster,” he said. “I would say it’s kind of like a boomerang in that it went up faster and is coming down more sharply. I think this is because to some extent the sector really overextended itself towards the tail-end of the bull run, and now it’s the epicenter for pulling back the fastest.”

Below is a list of notable US-based tech companies that have laid off employees so far this year.

Company No. of reported layoffs % workforce impacted Date Announced Industry Source
Postscript 43 19% 6/26/2022 Marketing Tech, SMS Marketing Alex Beller
Ethos Life 40 12% 6/24/2022 InsurTech Coverager
Aura 70 9% 6/24/2022 Cybersecurity Bank Info Security
Netflix 450 4% 6/23/2022 Media/entertainment Variety
Esper Unclear 12% 6/23/2022 DevOps GeekWire
Ro Unclear 18% 6/23/2022 Health Care TechCrunch
MasterClass 156 20% 6/22/2022 Edtech MasterClass CEO David Rogier
Community 40 Unclear 6/22/2022 Social Media Business Insider
SummerBio 101 100% 6/20/2022 Health Care, Diagnostics Bay Area Inno
Buzzer Unclear 20% 6/20/2022 Media, Sports Sportico
Finite State 16 Unclear 6/17/2022 Cybersecurity ColumbusInno
Socure 69 13% 6/17/2022 Identity verification Forbes
Nayya 16 15% 6/17/2022 Employee Benefits, HR Tech Crunchbase News reporting
Zumper 45 15% 6/16/2022 PropTech The Real Deal
JOKR 50 5% 6/16/2022 Food delivery, ecommerce TechCrunch
Tonkean 23 23% 6/15/2022 Software The Marker
Notarize 110 25% 6/15/2022 Legal Tech Boston Business Journal
Coinbase 1,100 18% 6/14/2022 Crypto Coinbase
Redfin 470 6% 6/14/2022 PropTech Bloomberg
Compass 450 10% 6/14/2022 PropTech Bloomberg
TIFIN 21 10% 6/14/2022 FinTech Axios
BlockFi 170 20% 6/13/2022 Crypto BlockFi
DesktopMetal Unclear 12% 6/13/2022 3D Printing MarketWatch
Albert 20 8% 6/10/2022 FinTech dot.LA
Keepe Unclear Unclear 6/10/2022 PropTech GeekWire
Liongard Unclear Unclear 6/10/2022 IT Infrastructure CRN
Stitch Fix 330 15% 6/10/2022 Ecommerce, Fashion CNBC
Sonder Unclear 21% 6/10/2022 Hospitality MarketWatch
Homie 122 40% 6/10/2022 PropTech TechCrunch, Crunchbase News reporting
OneTrust 950 25% 6/9/2022 Cybersecurity OneTrust
Convoy 90 7% 6/9/2022 Logistics GeekWire
Hologram 80 33% 6/9/2022 IoT Crain’s Chicago Business
Jellysmack Unclear 8% 6/9/2022 Media/Entertainment Business Insider
Deep Instinct Unclear Unclear 6/8/2022 Cybersecurity Crunchbase News
TruePill Unclear 15% 6/8/2022 Health Care TruePill
Progrexion 100 Unclear 6/7/2022 FinTech Crunchbase News
Bird 138 23% 6/7/2022 Transporation TechCrunch
ID.Me Unclear Unclear 6/7/2022 Identity verification Business Insider
Dutchie 56 8% 6/6/2022 Cannabis GeekWire
Sendoso 100 14% 6/6/2022 Marketing Automation Business Insider
Clubhouse Unclear Unclear 6/3/2022 Social Media, Audio Bloomberg
Stord 59 8% 6/3/2022 Logistics Business Insider
Superhuman 23 22% 6/3/2022 Email Software CEO Rahul Vohra
Gemini Unclear 10% 6/2/2022 Fintech, Crypto Bloomberg
Carbon Health 250 8% 6/2/2022 Health Care Carbon Health
Policygenius 170 25% 6/2/2022 InsurTech TechCrunch
Esme Learning 40 Unclear 6/2/2022 EdTech Esme Learning, Crunchbase News reporting
IRL 25 25% 6/2/2022 Social Media TechCrunch
Eaze 25 Unclear 6/2/2022 Cannabis Business Insider
Sourcepoint 7 13% 6/2/2022 Privacy Tech, Marketing Tech Crunchbase News reporting
Side Unclear 10% 6/1/2022 PropTech Inman
Cybereason 100 Unclear 6/1/2022 Cybersecurity CTech
Loom 34 14% 6/1/2022 Enterprise Communication TechCrunch
Cerebal Unclear Unclear 5/31/2022 Health Care Bloomberg
Playtika 250 6% 5/31/2022 Gaming Globes
Replicated 50 Unclear 5/31/2022 Enterprise Software Replicated
Tomo 44 33% 5/31/2022 FinTech, PropTech Business Insider
Terminus Unclear 15% 5/27/2022 Marketing LinkedIn
Coterie Insurance 30 20% 5/27/2022 InsurTech CincyInno
Lacework 200 20% 5/26/2022 Cybersecurity The Information
Bolt 250 33% 5/25/2022 FinTech Fortune
ClickUp Unclear 7% 5/24/2022 Productivity Tools Protocol
The Zebra 40 12% 5/24/2022 InsurTech Coverager
Klarna Unclear Unclear 5/23/2022 Fintech
PayPal 83 0.27% 5/23/2022 Fintech The Information
Outside Inc Unclear 15% 5/20/2022 Media/entertainment Denver Business Journal
Colossus 97 Unclear 5/20/2022 Solar, Software Axios
Skillz 70 10% 5/20/2022 Esports/Video Games TechCrunch
Picsart 90 8% 5/17/2022 Media/entertainment The Information
Vroom 270 14% 5/16/2022 Auto, E-commerce Fast Company
Zulily 99 10% 5/16/2022 E-commerce GeekWire
Subspace Unclear 100% 5/13/2022 Media/entertainment LinkedIn
Latch 30 6% 5/13/2022 Smart Home, Security TechCrunch
Thirty Madison 24 3% 5/13/2022 Health Care Axios
Zwift Unclear Unclear 5/12/2022 Fitness DC Rainmaker
Tripwire Unclear Unclear 5/12/2022 Security OregonLive
Section4 32 25% 5/12/2022 Edtech TechCrunch
DataRobot 70 7% 5/11/2022 Artificial Intelligence The Information
Carvana 2,500 12% 5/10/2022 Automotive, Ecommerce WSJ
Doma 310 15% 5/10/2022 Fintech, InsurTech HousingWire
Mural Unclear Unclear 5/6/2022 Product Design Protocol
Reef 750 5% 5/6/2022 Food delivery, ecommerce The Information
On Deck 72 25% 5/5/2022 Business development TechCrunch
Cameo 80 25% 5/4/2022 Media/entertainment The Information
MainStreet 50 33% 5/4/2022 Fintech Insider
Ideoclick 40 33% 5/4/2022 E-commerce Puget Sound Business Journal
Vise 25 25% 5/4/2022 Fintech CityWire
Thrasio Unclear Unclear 5/2/2022 E-commerce Insider
Noom 495 25% 4/29/2022 Fitness/Digital Health Insider
Robinhood 300 9% 4/26/2022 Fintech Robinhood
Clyde 19 Unclear 4/25/2022 E-commerce External Spreadsheet
Better 5,000 50% 4/19/2022 Fintech TechCrunch
Blend 200 10% 4/19/2022 Fintech HousingWire
Automox Unclear 11% 4/18/2022 Security LinkedIn
Halcyon Health Unclear Unclear 4/15/2022 Health Care Axios
Ahead Unclear Unclear 4/14/2022 Health Care Bloomberg
Rad Power Bikes 100 14% 4/12/2022 Transporation GeekWire
Food52 20 6% 4/8/2022 Media, E-commerce Digiday
Workrise Unclear Unclear 4/5/2022 Marketplace TechCrunch
Fast 400 100% 4/5/2022 Fintech The Information
Rasa 59 40% 4/4/2022 Artificial Intelligence Business Insider
GoPuff 450 3% 3/31/2022 E-commerce Bloomberg, The Information
Grove Collaborative Unclear 17% 3/29/2022 E-commerce Retail Dive
Curology 150 20% 3/16/2022 E-commerce SF Business Times
Knock Unclear 46% 3/15/2022 Proptech The Real Deal
Sezzle Unclear 20% 3/10/2022 Fintech Reuters
Hyperscience 100 25% 3/3/2022 AI The Information
Virgin Hyperloop 111 50% 2/22/2022 Transporation Fortune
Hopin 138 12% 2/10/2022 Virtual Event TechCrunch
Peloton 2,800 20% 2/8/2022 Fitness WSJ
Rhino 57 20% 2/3/2022 PropTech, InsurTech The Real Deal
Beachbody 70 10% 1/27/2022 Fitness Club Industry
Glossier 80 33% 1/26/2022 Beauty Business of Fashion
Root Insurance 330 20% 1/21/2022 InsurTech Columbus Dispatch

This article originally appeared in Tech Startups

Report

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments