Tech Industry Rocked By Worst Layoffs In Decades

Coinbase was in the news yesterday for massive layoffs, but it’s much worse than what people are seeing.

 

The breakdown

Yesterday everyone was talking about how Coinbase laid off more than 1100 people, which is about 18% of their entire workforce.

Coinbase CEO Brian Armstrong stated that this was because he believes we are “clearly in a recession.”

 

While this is bad, there is a trend of multiple companies initiating layoffs. Let’s take a look.

 

Redfin announced yesterday that it laid off 900+ employees.

They did this in response to rising mortgage rates and clear signs of economic slowing. Leadership stated that they wouldn’t lay people off unless they had to.

OneTrust Announced on June 9th that it was laying off 900+ Employees.

OneTrust announced last week it was laying off 25% of its staff because it needed to “adapt to capital markets.”

Stitch Fix announced on June 9th that it was laying off 15% of its staff.

A week ago, Stitch Fix, the large online clothing retailer, announced it was laying off over 15% of its salaried staff due to economic forecasts and lower consumer spending.

Policy Genius cut 25% of staff on June 3rd.

Policy genius announced layoffs of around 170 people only two weeks ago due to a “sudden and dramatic shift in the economy”

 

I could go on with these examples.

 

A Real Shift

Many people say it’s just a crypto or real estate thing. But a webpage called layoffs.fyi has been tracking all of the layoffs since the pandemic. It’s very clear that this is across multiple industries and sectors.

On their chart, you can see we are almost back to pandemic levels of layoffs.

layoffs since pandemic

 

Here’s another chart breaking down layoffs by industry.

layoffs by industry

 

Layoffs.fyi have reported over 35,000 layoffs for tech companies this year alone.If that’s the case, this is the worst layoff for the tech industry since the dot com bubble.

 

The Takeaway

So as you can see, the current environment affects more than just crypto and real estate.

We are seeing objective indications of an actual recession not happening in the future, but right now. 

It’s here, and I hope you all are preparing to weather the storm. If you can make it through this, Historically, the best times to be in business are right after recessions. I talked about that in yesterday’s article.

 

I’m wishing everyone the best out there.

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