In the last few days, we have witnessed a series of massive layoffs in well-known companies worldwide, such as Microsoft, LA Times, eBay, Business Insider and Riot Games. These impressive companies have made the difficult decision to reduce their workforce, for financial and restructuring reasons, leaving a large number of employees in an uncertain situation. These actions have generated great concern in society and have highlighted a labor reality that affects thousands of workers around the world.
Microsoft announces layoffs of 1,900 employees
Microsoft has announced its own job cuts, with nearly 2,000 employees affected in its Xbox division. This news comes shortly after the company completed its $69 billion acquisition of Activision Blizzard, giving it control of popular franchises such as Call of Duty and World of Warcraft.
In a memo to staff, Xbox chief Phil Spencer acknowledged that this was a “painful decision” for the company and expressed gratitude to employees who “brought creativity, passion and dedication” to their work.
However, the move is part of Microsoft’s effort to align its strategy and execution plan with a sustainable cost structure as the video game workforce shrinks by approximately 8.6%.
Los Angeles Times cuts 115 jobs
The Los Angeles Times, one of the most prominent newspapers in the United States, has announced a staff cut affecting 115 employees due to the financial difficulties faced by the newspaper industry. According to its owner, Patrick Soon-Shiong, the newspaper has had difficulty adapting to digital change and maintaining a sustainable business model. He also says that the newspaper has been facing financial losses of approximately $30 to $40 million each year. This is due to declining advertising and subscriber revenues, which has forced difficult decisions.
The staff cuts have generated criticism from the Los Angeles Times union, as they affect several departments, including those covering the White House in an important election year. In addition, there are concerns about the impact on the quality of journalism and the relationship with the audience. This is not the first cutback to happen, as 2023 also saw a reduction in the number of employees and the departure of the executive editor, hired to stabilize the newspaper, has generated uncertainty about its future.
The decline of the Los Angeles Times in recent years has been remarkable, despite being one of the most important newspapers in the United States. The arrival of the digital era and changes in the way news is consumed have generated financial problems that have affected the newspaper industry in general.
eBay announces approximately 1,000 job cuts
E-commerce giant eBay announced Tuesday that it will lay off 1,000 employees, representing about 9% of its full-time workforce.
The recent round of job cuts at eBay is attributed to the “challenging macroeconomic environment,” as stated by CEO Jamie Iannone. However, he also acknowledged that the company’s own expenses had outpaced its growth, making it necessary to streamline operations.
The eBay announcement, coupled with recent warnings from Google’s CEO of more layoffs to come, paints a bleak picture for workers in the technology sector.
Riot Games lays off 530 workers
Famous video game maker Riot Games, responsible for the hit League of Legends, has been in the news for its recent announcement to cut 11% of its workforce. This translates into more than 500 employees globally who will lose their jobs, which is not only devastating for them, but also for the game’s fans who have dedicated time and passion to this ever-expanding universe.
This decision will have significant consequences, especially in key areas for the future of the company. One of them is the development team of Legends of Runeterra, a long-awaited card game based on the League of Legends universe. In addition, all projects on Riot Forge, the company’s internal publishing label for indie title developers, have been cancelled.
Business Insider announces 8% staff layoffs
Business Insider, a popular digital news publication, announced Thursday that it would lay off 8% of its staff, or about 60-70 employees. This decision comes just a year after the company laid off 10% of its staff due to a decline in advertising revenue and social media traffic. This move follows the company’s decision to shift focus solely to business, technology and innovation news coverage.
With social media platforms limiting news content and changes in consumer behavior, Business Insider has recognized the need to evolve and adapt to remain relevant.
In November, Business Insider announced a change in strategy, bringing back its original name and abandoning its recent focus on general news. This change also saw the resignation of co-founder and former CEO Henry Blodget, and the appointment of Peng as his successor.
In short, with nearly 11,000 technology employees already laid off this year, according to layoffs, mass layoffs in the tech industry are a troubling reality that has affected different companies and workers around the world. This is a grim reminder that no company or industry is immune to the effects of a downturn.
With information from The Verge, New York Times