While some fear a recession may be around the corner, some of the potential effects are already visible. Jobless claims rose 7,000 to 250,000 in July, an eight-month high, Labor Department data showed.
Meanwhile, the Personal Consumption Expenditure Price Index, which tracks the price of food, energy and other goods, rose 9.1 percent last year, according to the Bureau of Labor Statistics.
Christian Vom Lehn, an associate professor of economics at Brigham Young University, described the recession as a “temporary downturn in the overall economy” — forcing tech companies to cut back on hiring and consider layoffs.
Robinhood leaves a large workforce.
Investment platform Robinhood is the latest company to announce layoffs, reducing its workforce by 23% after laying off 9% of its employees in April.
In a blog post on the company’s website, CEO Vlad Tenev cited the “deteriorating macro environment, 40-year high inflation and the broader crypto market collapse” as the reason for the layoffs.
Tech companies that laid off workers last month
Here’s a list of tech companies that announced layoffs in July:
- Oracle: The company said it has laid off an undisclosed number of employees in its U.S. customer experience division, with additional cuts in Canada, India and parts of Europe, putting the ballpark number in the “thousands.”
- Vox Media: The publishing company made its fourth round of layoffs since 2018, laying off 39 employees “as shrinking marketing and advertising budgets across industries and economic pressures from supply chain problems change the way consumers spend,” Vox Media CEO Jim Bankoff said in a memo to employees, per Axios.
- Shopify: The Canadian e-commerce platform is cutting 10% of its workforce — about 1,000 employees — mostly in departments like recruiting, support and sales, The New York Times reported.
- Vimeo: Video platform CEO Anjali Sood announced 6% layoffs. Sud did not specify exactly how many employees or in which departments.
- Open sea: Devin Finzer, CEO of OpenSea, blamed the Creto winter and broader macroeconomic instability announced The company was laying off 20 percent of its workforce. According to TechCrunch, this will affect 230 employees.
- Loan Depot: The company plans to lay off 42 percent of its workforce, cutting a large portion of its 11,300-strong workforce. According to The Real Deal, the company expects to save about $400 million.
- Gopuff: The express delivery startup announced it is laying off 1,500 employees, or 10% of its global workforce, closing 76 warehouses in the US in July.
- Twitter: In early July, the social media giant cut 30% of its talent acquisition team pending a deal with Elon Musk. The news comes after the company announced in May that it would be cutting costs and hiring.
Technology cuts in June
Here are a few popular companies that offered discounts in June:
- Tesla He laid off 200 workers.
- Netflix He cut 300 employees.
- Redfin and Compass They reduced their workforce by 10% and 8% respectively.
- Coinbase 18% lay off workers.
- Clubhouse Release an unknown part of the workforce.