It’s time for the latest quarterly results and FY2022 financial statements. Unsurprisingly, technology companies are underperforming. marked by significant charges relating to the numerous layoffs. 2022 will go down in the annals of the tech industry for its own massive waves of layoffs.
Huge renovation costs
The year that just ended he spared no one, not even the almighty GAFAM. the Financial Times reveals he has spent $10 billion in compensation for massive social plans put in place. Over the past three months, most of the fees from the tech giants it was about their restructuring.
In early February, Meta filed $4.6 billion in charges, including $975 million in severance payments. Facebook’s parent company expects $1 billion in additional costs for 2023. At Amazon, Brian Olsvasky, chief financial officer, announced $640 million in compensation expenses for dismissed employees. Alphabet meanwhile, estimated at between $1.9 and $2.3 billion in costs for the elimination of 6% of its posts. Finally, Microsoft has indicated that the layoff of 10,000 people to restore its financial health it will have cost him $1.2 billion.
Layoffs, “necessary adjustments” »
According to the site Layoffs.fyi, which lists all the layoffs in the tech sector, more than 250,000 employees have lost their jobs since the beginning of 2022. Among the last big names to have to make concessions PayPal is located who revealed, in early February, that he was leaving reduce its workforce by 7%or about 2,000 employees.
Sometimes necessary compromises regain investor confidence. In Meta’s case, news of its biggest wave of layoffs enabled it to increase its value on the stock market.
Asked by Financial TimesDan Ives, an analyst at investment bank Wedbush, explains that “theBig Tech has spent, over the last four or five years, like rock stars did in the 80s. Now they give the impression of having calmed down “. The behemoths will still have to continue their efforts to make 2023 “the year of efficiency”.
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