Not too long ago, U.S. tech companies were on a hiring spree. Silicon Valley could not hire enough workers, and investors loved the tech sector, with the Nasdaq Composite gaining over 21% in 2021. Now, with the Nasdaq down 30% year to date, not a week passes without word of massive layoffs at technology enterprises. In the U.S. alone, job cuts at tech companies totaled more than 88,000 in 2022, according to Crunchbase.
Why are U.S. tech companies downsizing? A Forbes article explains that much of it goes back to the pandemic. Tech companies bolstered their staff when more homebound people worked and shopped online. But as COVID-19 restrictions relaxed, many people went back to the office, at least part time, and returned in-person to retail stores and restaurants. The layoffs may also be a defensive measure ahead of a possible recession. Companies that expect an economic dip soon want to get their costs under control now.
To identify the American tech companies laying off the most people, 24/7 Wall St. reviewed data compiled by layoffs.fyi, a layoff tracking website. We only considered American companies that announced layoffs in 2022. Companies are ranked by the total number of employees laid off as reported from Jan. 1 to Dec. 3, 2022.
Although the recent job changes at Twitter due to Elon Musk’s takeover have garnered headlines, the microblogging site did not cut the most employees among the 25 companies listed. It fired 3,700 employees, ranking No. 6 on the list. Yet those layoffs represent half of its workforce. (On the other hand, these are the cities that will add the most jobs by 2060 according to economists.)
The top tech company for most jobs cut is Meta, the social media company formerly known as Facebook. Meta slashed 13% of its workforce, or 11,000 employees. Online retailer Amazon was a close second with 10,000 layoffs. But the company is so large that the number accounted for only 3% of its headcount. (Those laid off may need to brush up on their skills. Here are 22 jobs with the fastest changing skill requirements.
Click here to see the American tech companies laying off the most people this year.
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.