IT sector crisis deepening: Pinterest, Miro, Splunk, Tinder, many others laying off workers

February 3, 2023  13:30

Mass layoffs in IT companies continue. Pinterest, Miro, Splunk, and many other such companies are reducing their staff in an attempt to reduce costs in the face of the expected crisis.

Pinterest lays off 5% of staff

Popular photo hosting Pinterest plans to cut 5% of its staff to optimize costs and focus on “strategic priorities.”

In 2022, the company employed about 4,000 people worldwide. In the near future, it is planned to reduce 150 people from programmers in San Francisco. Several more employees will be laid off from offices in other US cities and countries.

Laid-off employees were promised severance pay, discounted insurance policies, and some other assistance measures.

Miro lays off 7% of staff

Miro, which develops an interactive online platform for team collaboration, plans to lay off 119 employees; about 7% of its workforce. The reductions will mainly apply to HR specialists and a number of programmers.

Also, the company plans to cut costs on the employee recruitment process and travel expenses, as well as cancel large-scale internal events.

As in the case of Pinterest, here too, the laid-off employees will receive the necessary funds and assistance.

Splunk cutting 4% of staff

American software company Splunk plans to cut about 325 employees; 4% of the staff. Most of the cuts will affect North American workers.

Through these cuts, the company hopes to reduce costs and balance growth with profitability. To reduce costs, the company is also taking measures to reduce dependence on external resources, various agencies and consultants. The company plans to be “smarter” about outsourcing in the future.

However, the company plans to start hiring new employees in 2024.

Tinder laying off 8% of staff

Match Group, the owner of online dating service Tinder, plans to cut 8% of its workforce. Now the company employs about 2,000 people, of which 150 will be laid off.

In the face of the crisis, the company is not only laying off employees, but is also seeking to reduce the cost of renting office space and plans to cut back on marketing for most dating services—except for Tinder and Hinge, where it plans to increase costs. Also, the company has set aside about $6 million for severance pay and similar expenses.

Job cuts in IT sector 

According to TrueUp tracker data, tech companies have laid off more people overall in January 2023 than in the last two months of 2022. More than 99,900 workers have already been laid off since the beginning of the year. Another 50,500 professionals were laid off in November 2022, and 40,300 workers were cut in December.

Recently, layoffs are taking place also at companies such as International Business Machines (IBM) and Lam Research, which plan to lay off a total of 5,200 people, NetApp—8% of staff, PayPal—7% of staff, 343 Industries—95 employees, and Unity Software—284 employees.

The largest layoffs occurred at Microsoft where 6,000 to 11,000 workers were laid off, according to various sources, and at Amazon which initially planned to cut about 10,000 jobs, but later decided to increase that number to 18,000.

Tesla and Micron Technology are also cutting 10% of their workforces. China's largest smartphone manufacturer Xiaomi is laying off 15% of its employees. HP Inc. plans to cut 4,000-6,000 employees over the next three years. Video service Vimeo also plans to cut nearly 11% of its staff.

Twitter's workforce has been cut by nearly two-thirds since Elon Musk became the new owner of the company and its social media platform. If before the company employed about 7,500 people, now there are solely about 2,300 left.

Meta Platforms is laying off 11,000 people; about 13% of the corporation's workforce. However, it reflected well on CEO Mark Zuckerberg's well-being. Thanks to Meta's cost-cutting measures, the company's stock price rose 23% to a one-day high of $197.16 on Thursday, and Zuckerberg's personal fortune grew by a record $12.5 billion in one day.


 
 
 
 
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