The platforms they look especially affected for the successive interest rate hikes arranged by the Federal Reserve (Fed), which motivates investors to sell their riskier and more volatile asset stocks -such as technological papers- to take refuge in treasury bonds that now offer a better return and are safer.
In the same way, economic slowdown and inflation motivate advertisers and consumer firms to cut their advertising budgetsthe main source of financing for several of these companies.
To this is added the dollar strengththat reduces the income of the firmsmeasured in that currency, in its operations abroad.
Just last week, the digital payment giant Stripe fired 14% of its plant of just over 1,000 workers, while the mobility platform lyftthe second in the United States after Uber, did so in a 13%a percentage that represents almost 700 employees.
But not only reasons related to the US economy have an impact: some of the companies, such as Stripe, admitted that hired more people than necessary during the pandemic thinking that the pace of growth and user habits would be sustained for years to come.
In the same line, Twitter founder Jack Dorsey who left the firm last year, lamented expanding the company’s size “too quickly.” Dorsey’s statement was given after the social network announced last Friday the dismissal of almost half of its 7,500 employees after being acquired by the tycoon and CEO of Tesla, Elon Musk.
To these announcements, is added a freeze on new hires at Amazon, Apple and Alphabet (Google parent company).
In the same way, Meta Platforms, the parent company of Facebook, Instagram and WhatsApp, foresees lay off “many thousands” of employees in an announcement that would be made official tomorrow, Wednesday, according to people familiar with the matter told The Wall Street Journal and reported by the Bloomberg agency. The firm headed by Mark Zuckerberg, which has 87,000 employees worldwiderecorded a cinterannual aid of 52% in your benefit third-quarter net worth, which dragged down its shares.
In the case of Meta, investors are suspicious about the focus that the company has recently placed on the so-called “metaverse“.
Both in the case of Goalthat lost 71% of its value this year, as in the Alphabet, Amazon and Microsoftthe last balances did not meet expectations of the market, triggering a crash in their prices who came to touch drops of 24%, after they met quarterly balance sheets,
In the case of microsoftthis month the company announced the dismissal of almost 1,000 people of its 220,000 workers, which represents 1% of the total workforce.
Outside of large companies, the situation is no more favourable: nearly 104,000 startup workers have lost their jobs so far this year, up from 81,000 in 2020as indicated by the Layoffs monitoring platform.
This figure, however, is less than when the dotcom bubble burst in 2001 and 2002when the industry lost 168,395 and 131,294 jobs, respectively, in most cases due to company closures and bankruptcies.
Source: Ambito
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