Personnel Cutbacks in the Technology Sector 2022/2023 ~~ My Assessment of the Current Situation

Rising inflation and the threat of recession are taking their toll on the technology sector. After years of growth, companies are preparing for lean years and are cutting back on staff.

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Amazon

The online retailer plans to cut more than 18,000 jobs. A few months earlier, an insider had spoken of 10,000 jobs. That equates to about six percent of the company's roughly 300,000 administrative employees.

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Meta

The Facebook parent is cutting jobs for the first time since the company was founded in 2004. The company is suffering from collapsing advertising revenues and billion-dollar losses from its "Reality Labs" division. Among other things, the development of the "Metaverse" is bundled there, a virtual world that company boss Mark Zuckerberg considers to be particularly promising for the future. A total of 11,000 jobs will be eliminated. That corresponds to 13 percent of the workforce.

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Intel

Company CEO Pat Gelsinger wants to save three billion dollars at the chip manufacturer in 2023. This includes "personnel measures," he told the Reuters news agency. He gave no details on the scope of possible job cuts.

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Microsoft

According to a media report, the software company is cutting nearly 10000 of its total 221,000 jobs.

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Twitter

After the acquisition of the short message service, the new owner Elon Musk fired about 3700 employees, half of the workforce.

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Doordash

The US parent of the German food delivery company "Wolt" is cutting 1250 administrative jobs. According to the company, about 8600 people worked for DoorDash at the beginning of 2022.

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Stripe

The online payment service provider is cutting 14 percent of its jobs. After the cuts, the company will still have about 7000 employees, according to an internal email from the founders.

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Lyft

Nearly 700 people will have to go at the Uber rival. That's 13 percent of its workforce. Previously, the ride-hailing company had already cut 60 jobs and halted new hires.

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Seagate

As part of its cost-cutting program, the memory chip and hard drive provider plans to cut 3000 jobs. That represents about eight percent of the workforce.

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Micron

The memory chip specialist is shrinking its workforce by ten percent. Due to the gloomy outlook for the industry, it is also scaling back its investments.

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Coinbase

The cryptocurrency exchange announced two job cuts in 2022. They will fall victim to a total of nearly 1200 employees, or about 20 percent of the workforce.

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Roku

The maker of devices for receiving streaming video services is cutting its workforce by five percent, or 200 employees, due to "current economic conditions."

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Cisco

The networking equipment maker has imposed a restructuring program on itself. Under it, five percent of jobs could be eliminated.

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HP

The computer manufacturer says it expects to cut 6,000 jobs by 2025.

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Salesforce

One in ten jobs will be eliminated at the SAP rival. Based on the headcount at the end of October 2022, around 8,000 employees will have to take their hats off. In addition, some locations are to be closed.

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SAP

In view of the planned turnaround towards more profit, the software manufacturer SAP also wants to make itself leaner and cut 3000 jobs to achieve this. 

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(Reference Source: Reuters)

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How would I currently describe the Situation as a CEO:

"The technology sector has been one of the most resilient industries in recent years, with steady growth and high demand for skilled workers. However, as the global economy faces rising inflation and the threat of recession, many technology companies are finding themselves in a difficult position. In order to stay afloat, many are turning to personnel cutbacks as a way to reduce costs and preserve profitability.

As a CEO of a large technology company, I can attest to the fact that these cutbacks are not a decision that we take lightly. We understand that our employees are our greatest asset and that they are integral to our success as a company. However, we also have a responsibility to our shareholders and to the broader economy to ensure that we remain financially stable and able to weather any downturns.

In the face of these economic challenges, we have had to make difficult choices about how to allocate our resources. This has included reducing our workforce in certain areas, as well as consolidating or outsourcing certain functions. These decisions were not made lightly, and we have worked hard to minimize the impact on our employees and customers.

At the same time, we are also looking for ways to adapt and evolve our business model, so that we can continue to meet the changing needs of our customers and stay competitive in the market. This includes investing in new technologies and innovative solutions, as well as finding new markets and revenue streams.

We understand that these cutbacks can be difficult for our employees and their families, and we are committed to providing support and assistance throughout the process. We also want to assure our customers that the quality of our products and services will not be affected by these changes, and we will continue to provide the same level of excellence that they have come to expect from us.

In conclusion, the technology sector is facing challenging times, but we are confident that by making difficult choices now and adapting to the changing market, we will be able to weather these storms and emerge stronger in the long run."

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How do I see the situation as Founder and CEO in the start-up phase:

"The technology sector has seen tremendous growth over the past decade, with companies expanding their operations and increasing their workforce to meet the demands of the market. However, as we move into 2022 and 2023, the industry is facing a new challenge - personnel cutbacks.

Rising inflation and the threat of recession are making it difficult for companies to maintain their current staffing levels. In order to remain profitable and competitive, many companies are choosing to reduce their workforce and focus on streamlining their operations.

One of the biggest challenges for companies in the technology sector is finding the right balance between cutting costs and maintaining the quality of their products and services. In order to achieve this, many companies are turning to automation and technology to increase efficiency and reduce the need for human labor.

Despite the challenges, there are still opportunities for growth in the technology sector. Companies that are able to adapt to the changing market conditions and find ways to cut costs without sacrificing quality will be able to survive and even thrive in this difficult environment.

As an entrepreneur and founder of a technology company, it is important for me to stay informed about the trends and challenges facing the industry. I am constantly looking for ways to stay ahead of the curve and find innovative solutions to the challenges we face.

One area that I believe holds great potential for growth is in the field of renewable energy. The world is moving towards a more sustainable future, and companies that are able to provide clean and efficient energy solutions will be in high demand.

I am dedicated to developing and deploying innovative renewable energy solutions that help to reduce our dependence on fossil fuels and protect our planet for future generations. I believe that by investing in renewable energy, I can not only reduce costs, but also create jobs and stimulate economic growth.

In conclusion, the technology sector is facing a challenging environment as we move into 2022 and 2023. However, companies that are able to adapt and find innovative solutions will be able to survive and even thrive in this difficult environment. As an entrepreneur and founder of a technology company, I am excited to be a part of this industry and to play a role in shaping its future."

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Unfortunately, I could now go on about umpteen and include other points of interest here. But that would definitely take me too far. If one would want to include current geoeconomic and geopolitical circumstances as well. 

What is your opinion on the current situation in the Technology Sector,

or, in general, how do you see the current situation? 

Where will the journey take us? 

How are you dealing with it, with your company or personally?

My Name is 龙凌霆