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Tag: lay off

  • Clubhouse will lay off 50% of its staff

    Clubhouse, which quickly became popular during the pandemic with its online chat room experience, was confirmed by founders Paul Davison and Rohan Seth to undergo a 50% staff reduction and a company reorganization.

    However, despite preparing for a large-scale layoff, the company, which was valued at $4 billion in 2021, said it still has sufficient funds and stressed that there is no immediate pressure to reduce costs, indicating that the layoff is mainly for organizational adjustment and transformation.

    In a letter to the internal staff, Paul Davison and Rohan Seth revealed that the company will focus on smaller-scale product development in the future, but did not explain the details.

    Clubhouse attracted many users during the pandemic, including Tesla CEO Elon Musk, American talk show host Oprah Winfrey and others who have held online talks through Clubhouse services. There are also many creators, news platforms, and others who use it for topic content discussions or to attract people to interact online through Clubhouse services.

    However, as the pandemic eased and various countries relaxed their restrictions, the demand for Clubhouse services also decreased significantly. Similar situations, such as Spotify, Twitter, Reddit, Amazon, and other companies that launched similar services, also faced a sharp decline in users in the post-pandemic era, and then closed the service or transformed it.

  • Amazon has confirmed that it will lay off approximately 9,000 employees

    Amazon CEO Andy Jassy confirmed earlier that the company will lay off approximately 9,000 employees by the end of April, covering AWS, human resources, advertising, and Twitch-related businesses.

    Since announcing the layoff of approximately 18,000 employees in January, Andy Jassy said that the move will streamline Amazon’s business system and focus more resources on important customer experiences. He also emphasized that the company will continue to invest in AWS cloud business, online services, and necessary new business development in the future.

    Photo by ANIRUDH on Unsplash

    One of the reasons for the consecutive layoffs this year is due to the greater demand for online services driven by the pandemic in recent years, which has increased Amazon’s global workforce from around 798,000 employees at the end of 2019 to about 1.6 million at the end of 2021. However, with the global pandemic gradually subsiding, Amazon believes that it is not necessary to reserve too much manpower, so it has announced consecutive global workforce reduction messages.

    In addition to the massive layoffs at Amazon, Twitch, a subsidiary of Amazon, has also reduced its overall expenses by cutting 400 employees due to a decline in overall usage and revenue caused by the weak micro-economy.

  • Lenovo may choose to lay off staff to deal with the weak PC market

    Lenovo recently released its third-quarter results for the 2022-2023 fiscal year, showing a net profit of $4.37 million, a year-on-year decline of 32%, ending the past 10 consecutive quarters of growth. With the downturn in the PC market, like many companies in the industry, Lenovo is likely to choose to lay off employees in response to weak market demand.

    According to Financial Times, Lenovo CEO Yang Yuanqing said in the financial report conference call that the smart device market is now in the worst period, and Lenovo will reorganize its workforce to reduce some business expenses. Businesses including personal computers, tablets, mobile phones, etc. contributed more than 80% of Lenovo’s revenue. In the third fiscal quarter of the 2022-2023 fiscal year, the revenue and operating profit of these parts of the business fell by 34% and 37% year-on-year, respectively.

    Lenovo CEO Yang Yuanqing and Chief Financial Officer Wong Wai Ming said that $150 million in cost reductions is needed, which includes cutting operating expenses across the board and adjusting the workforce where necessary and appropriate. However, there is no specific explanation of the specific scale of layoffs and positions.

    According to market data from IDG, Lenovo is still the market leader with a lot of cash on hand. Lenovo said the market could stabilize more quickly in 2023 than many had expected, though it did not give specific reasons to back up that claim. Like many of its peers, Lenovo showed off a slew of new devices at CES 2023. With a recession, inflation fears, and the fact that many people have just bought new computers in the past two years, getting people back into their pockets is not going to be easy.

  • Dell will layoff 6,650 employers in the next few months

    The recent wave of layoffs has swept across the entire technology industry in the United States. Due to the plummeting sales of PCs, some companies have shut down due to the imminent economic recession, and Dell, one of the major OEMs, is not immune. According to Bloomberg, Dell will lay off 6,650 people in the next few months, accounting for about 5% of its global workforce.

    Dell’s global workforce, which peaked at 165,000 over the past six years, dropped to 126,300 in 2020 following a series of cuts. Dell Vice Chairman and Co-COO Jeff Clark wrote in a memo to employees: Dell is experiencing market conditions that “continue to erode with an uncertain future.”

    Dell will streamline its operations, including realigning regional sales and technology teams to improve cost efficiency, while also restructuring its divisions to reduce customer service costs. Jeff Clark admits that this is a difficult decision, but one that must be made for the long-term health and success of the future business.

    In the fourth quarter of 2022, global PC shipments fell off a cliff, falling to 67.2 million units, a year-on-year decrease of 28.1%. Among the top five vendors, Dell saw the largest decline, with shipments dropping 37.2% year-on-year to 10.8 million units. Competitor HP made the decision to cut jobs earlier, cutting 6,000 jobs in November last year. It is understood that this action by Dell can reduce expenses by $700 million to $1 billion per year, help maintain profit margins and reduce the impact on EPS.