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  • Here are the companies that have laid off employees this year — so far | CNN Business

    Here are the companies that have laid off employees this year — so far | CNN Business

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    CNN
     — 

    Just this week, Alphabet, Google’s parent company, Microsoft

    (MSFT)     and Vox Media announced layoffs that will affect more than 22,000 workers.

    Their moves follow on the heels of job cuts earlier this month at Amazon, Goldman Sachs and Salesforce. More companies are expected to do the same as firms that aggressively hired over the last two years slam on the brakes, and in many cases shift into reverse.

    The cutbacks are in sharp contrast to 2022, which had the second-highest level of job gains on record, with 4.5 million. But last year’s job numbers began falling as the year went on, with December’s job report showing the lowest monthly gains in two years.

    The highest level of hiring occurred in 2021, when 6.7 million jobs were added. But that came on the heels of the first year of the pandemic, when the US effectively shut down and 9.3 million jobs were lost.

    The current layoffs are across multiple industries, from media firms to Wall Street, but so far are hitting Big Tech especially hard.

    That’s a contrast from job losses during the pandemic, which saw consumers’ buying habits shifting toward e-commerce and other online services during lockdown. Tech firms went on a hiring spree.

    But now, workers are returning to their offices and in-person shopping is bouncing back. Add in the increasing likelihood of a recession, higher interest rates and tepid demand due to rising prices, and tech businesses are slashing their costs.

    January has been filled with headlines announcing job cuts at company after company. Here is a list of layoffs this month – so far.

    Google

    (GOOGL)    ’s parent said Friday it is laying off 12,000 workers across product areas and regions, or 6% of its workforce. Alphabet added 50,000 workers over the past two years as the pandemic created greater demand for its services. But recent recession fears has advertisers pulling back from its core digital ad business.

    “Over the past two years we’ve seen periods of dramatic growth,” CEO Sundar Pichai said in an email to employees. “To match and fuel that growth, we hired for a different economic reality than the one we face today.”

    The tech behemoth is laying off 10,000 employees, the company said in a securities filing on Wednesday. Globally, Microsoft has 221,000 full-time employees with 122,000 of them based in the US.

    CEO Satya Nadella said during a talk at Davos that “no one can defy gravity” and that Microsoft could not ignore the weaker global economy.

    “We’re living through times of significant change, and as I meet with customers and partners, a few things are clear,” Nadella wrote in a memo. “First, as we saw customers accelerate their digital spend during the pandemic, we’re now seeing them optimize their digital spend to do more with less.”

    The publisher of the news and opinion website Vox, tech website The Verge and New York Magazine, announced Friday that it’s cutting 7% of its staff, or about 130 people.

    “We are experiencing and expect more of the same economic and financial pressures that others in the media and tech industries have encountered,” chief executive Jim Bankoff said in a memo.

    Layoffs are also hitting Wall Street hard. The world’s largest asset manager is eliminating 500 jobs, or less than 3% of its workforce.

    Today’s “unprecedented market environment” is a stark contrast from its attitude over the last three years,, when it increased its staff by about 22%. Its last major round of cutbacks was in 2019.

    The bank will lay off up to 3,200 workers this month amid a slump in global dealmaking activity. More than a third of the cuts are expected to be from the firm’s trading and banking units. Goldman Sachs

    (FADXX)     had almost 50,000 employees at the end of last year’s third quarter.

    The crypto brokerage announced in early January that it’s cutting 950 people – almost one in five employees in its workforce. The move comes just a few months after Coinbase laid off 1,100 people.

    Though Bitcoin had a solid start to the new year, crypto companies were slammed by significant drops in prices of Bitcoin and other cryptocurrencies.

    McDonald’s

    (MCD)    , which thrived during the pandemic, is planning on cutting some of its corporate staff, CEO Chris Kempczinski said this month.

    “We will evaluate roles and staffing levels in parts of the organization and there will be difficult discussions and decisions ahead,” Kempszinski said, outlining a plan to “break down internal barriers, grow more innovative and reduce work that doesn’t align with the company’s priorities.”

    The online personalized subscription clothing retailer said it plans to lay off 20% of its salaried staff.

    “We will be losing many talented team members from across the company and I am truly sorry,” Stitch Fix

    (SFIX)     founder and former CEO Katrina Lake wrote in a blog post.

    As the new year began, Amazon

    (AMZN)     said it plans to lay off more than 18,000 employees. Departments from human resources to the company’s Amazon

    (AMZN)     Stores will be affected.

    “Companies that last a long time go through different phases. They’re not in heavy people expansion mode every year,” CEO Andy Jassy said in a memo to employees.

    Amazon boomed during the pandemic, and hired rapidly over the last few years. But demand has cooled as consumers return to their offline lives and battle high prices. Amazon says it has more than 800,000 employees.

    At The New York Times DealBook summit In November, Jassy said he believes Amazon “made the right decision” regarding its rapid infrastructure build out but said its hiring spree is a “lesson for everyone.”

    Even as he spoke, Amazon warehouse workers who helped organize the company’s first-ever US labor union at a Staten Island facility last year were picketing Jassy’s appearance outside the conference venue.

    “We definitely want to take this opportunity to let him know that the workers are waiting and we are ready to negotiate our first contract,” Amazon Labor Union President Chris Smalls said, calling the protest a “welcoming party” for Jassy.

    Salesforce

    (CRM)     will cut about 10% of its workforce from its more than 70,000 employess and reduce its real estate footprint. In a letter to employees, Salesforce

    (CRM)    ’s chair and co-CEO Marc Benioff admitted to adding too much to the company’s headcount early in the pandemic.

    – CNN’s Clare Duffy, Matt Egan, Oliver Darcy, Julia Horowitz, Catherine Thorbecke, Paul R. La Monica, Nathaniel Meyersohn, Parija Kavilanz, Danielle Wiener-Bronner and Hanna Ziady contributed to this report.

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  • Elon Musk’s Twitter accused of unlawful staff firings in the UK | CNN Business

    Elon Musk’s Twitter accused of unlawful staff firings in the UK | CNN Business

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    New York
    CNN
     — 

    A law firm representing dozens of former UK Twitter employees is accusing the company of “unlawful, unfair and completely unacceptable treatment” of workers following recent mass layoffs, which the firm referred to as a “sham redundancy process.”

    In a letter sent to the company on Monday, law firm Winckworth Sherwood alleged that Twitter violated UK law by cutting off terminated employees’ access to internal systems without engaging in the required warning and consultation period. The letter also said Twitter has failed to provide information about the selection criteria used to determine the layoffs.

    The letter states that 43 affected UK employees are prepared to take the issue to an Employment Tribunal, a UK system for employees to bring legal disputes against their employers, if the company does not agree to cooperate with negotiations over the layoff process.

    The warning marks the latest challenge to Twitter from former employees affected by mass layoffs that took place after Elon Musk acquired the company in October. Twitter laid off half of its global staff in early November, and has continued to fire and push out additional employees in the months since, including through an ultimatum to work “hardcore.”

    More than 300 former US employees have filed demands for arbitration against the company, according to attorneys representing them. Twitter is also facing four proposed class action lawsuits in the United States related to the layoffs. Now, the backlash to the layoffs may be escalating in the UK.

    “Our clients have been aghast at the direction taken by their employer, whose mission they have genuinely believed in and, in a number of cases, whose growth and transformation they have supported for many years,” lawyers for Winckworth Sherwood wrote in the letter. “They remain resolved to protect their positions, professional reputations and legal claims against the Company should it now proceed to dismiss them unlawfully and unfairly.”

    Twitter, which cut much of its public relations team as part of the layoffs, did not immediately respond to a request for comment on the letter.

    UK trade union Prospect, which represents more than 100 UK Twitter employees, also wrote to the company this week raising concerns about its layoff process, including claims that Twitter is “choosing not to honor” its promise that employees laid off following Musk’s acquisition would receive severance with terms no less favorable than prior to his takeover.

    Prospect also said the company has given workers “an arbitrary date to sign their rights away” in order to receive better separation terms, although negotiations over the layoffs are ongoing. (Typically, negotiations over mass layoffs by UK companies involve discussions of the reasons for terminations and how to minimize their size and impact.)

    “It is to be celebrated that in the UK it is not possible to simply fire employees en masse at will as Twitter has done in other countries,” Prospect, said in the letter. “Rest assured, Prospect will continue to lobby the Government and raise public awareness about employers who treat their workers like commodities to be discarded on a whim.”

    In the United States, there have also been concerns among Twitter employees after they began receiving their severance packages last weekend. The offers promise one month’s pay in exchange for agreeing to various terms, including a non-disparagement agreement and waiving the right to take any legal action against the company, according to Lisa Bloom, a lawyer representing dozens of former Twitter employees affected by the layoffs.

    Many were dissatisfied by the offer, according to public posts and attorneys representing ex-employees, raising concerns about the terms and saying it falls short of what the company has previously promised to provide to affected employees.

    The amount is also significantly less than provided at rivals like Facebook-parent Meta, which laid off thousands of workers around the same time and guaranteed them 16 weeks of base pay plus two additional weeks for each year they were employed at the company.

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  • Silicon Valley layoffs go from bad to worse | CNN Business

    Silicon Valley layoffs go from bad to worse | CNN Business

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    CNN
     — 

    Shortly before Thanksgiving, Amazon CEO Andy Jassy confirmed rumors that layoffs had begun in multiple departments at the e-commerce giant and said it would review staffing needs into the new year.

    On Wednesday, Jassy provided a sobering update on that review: Amazon is cutting more than 18,000 jobs, nearly double the 10,000 that had previously been reported and marking the highest absolute number of layoffs of any tech company in the recent downturn.

    At Amazon and other tech companies, the second half of last year was marked by hiring freezes, layoffs and other cost-cutting measures at a number of household names in Silicon Valley. But if 2022 was the year the good times ended for these tech companies, 2023 is already shaping up to be a year when people at those companies brace for how much worse things can get.

    On the same day Amazon announced layoffs, cloud-computing company Salesforce said it was axing about 10% of its staff – a figure that easily amounts to thousands of workers – and video-sharing outlet Vimeo said it was cutting 11% of its workforce. The following day, digital fashion platform Stitch Fix said it planned to cut 20% of its salaried staff, after having cut 15% of its salaried staff last year.

    The continued fallout in the industry comes as tech firms grapple with a seemingly perfect storm of factors. After initially seeing a boom in demand for digital services amid the onset of the pandemic, many companies aggressively hired. Then came a whiplash in demand as Covid-19 restrictions receded and people returned to their offline lives. Rising interest rates also dried up the easy money tech companies relied on to fuel big bets on future innovations, and cut into their sky-high valuations.

    Heading into 2023, recession fears and economic uncertainties are still weighing heavily on consumers and policymakers’ minds, and interest rate hikes are expected to continue. Beyond that, the growing number of layoffs may also give certain tech companies some cover to take more severe steps to trim costs now than they may have otherwise done.

    While there have been some layoffs recently in the consumer goods sector and hints of more to come elsewhere, the situation in Silicon Valley remains in stark contrast to the economy as a whole.

    The Labor Department’s latest employment report on Friday pointed to a year of extraordinary job growth in 2022, marking the second-best year for the labor market in records that go back to 1939. Meanwhile, a separate report from outplacement firm Challenger, Gray & Christmas found tech layoffs were up 649% in 2022 compared to the previous year, versus just a 13% uptick in job cuts in the overall economy during the same period.

    In his note to employees this month, Jassy chalked up the need for significant cost cutting at Amazon to “the uncertain economy and that we’ve hired rapidly over the last several years.” Others across the industry have echoed those points, with varying degrees of atonement.

    In a series of apologies that are beginning to sound the same, Silicon Valley business leaders from Meta’s Mark Zuckerberg to Salesforce’ Marc Benioff have blamed the wave of job cuts on their own misreading of how pandemic-fueled demand for tech products would play out.

    Benioff began a memo to the employees of Salesforce last week by invoking, as he so often does, the Hawaiian word for family. “As one ‘Ohana,” he wrote, “we have never been more mission-critical to our customers.” But the economic environment was “challenging,” Benioff wrote. “With this in mind, we’ve made the very difficult decision to reduce our workforce by about 10 percent, mostly over the coming weeks.”

    “As our revenue accelerated through the pandemic, we hired too many people leading into this economic downturn we’re now facing, and I take responsibility for that,” Benioff went on to say. Like other tech leaders, however, it’s unclear if Benioff will face any repercussions to his title or compensation.

    Patricia Campos-Medina, the executive director of the Worker Institute at Cornell University’s School of Industrial and Labor Relations, slammed this spate of mea culpas as “empty apologies” to the workers now paying for their miscalculations.

    While there will be a lot of near-term uncertainty for these tech workers, as well “a big economic hit on their lives,” Campos-Medina added, “I do think that this is a very skilled workforce that will find a way to engage back in the economy.” She predicts many of the laid-off tech workers will likely be able to find jobs and “we will see more stability in the mid-to-long term.”

    But the end may still not be in sight. Dan Ives, an analyst at Wedbush Securities said last week that the Salesforce and Amazon layoffs “add to the trend we expect to continue in 2023 as the tech sector adjusts to a softer demand environment.” The industry is now being forced to cut costs after “spending money like 1980’s Rock Stars to keep up with demand,” he added.

    And despite the robust overall labor market, there are growing concerns that tech layoffs could spread elsewhere.

    “I think we’re seeing an inflection point; the rate of jobs growth is slowing and a lot of these tech layoffs that we’re hearing about, I think are going to start materializing across the broader economy by the end of the first quarter,” John Leer, chief economist at Morning Consult told CNN’s Chief Business Correspondent Christine Romans in an interview Friday.

    In that sense, at least, Silicon Valley may once again be ahead of the curve, but not in the way it wants.

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  • What to expect at work this year | CNN Business

    What to expect at work this year | CNN Business

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    New York
    CNN
     — 

    The pandemic has transformed work over the past three years in ways few expected. It normalized remote work, created a shortage of critical workers and drove home to organizations that employees’ mental health and need for a sane work-life balance are critical to retention and engagement.

    So what does 2023 likely hold for you at your job, regardless of your industry?

    There are welcome and unwelcome developments on tap, along with some potentially confusing ones, too.

    Let’s get the bad news out of the way first.

    Regardless of whether the United States slips into a recession, there will be more widespread job cuts than what we’ve seen happening so far in industries like tech, media and finance.

    “We’re starting to see more layoffs pick up in other industries. I do anticipate rising layoffs in most sectors,” said Andrew Challenger, senior vice president of outplacement firm Challenger, Gray & Christmas.

    But that shouldn’t be surprising, given that layoffs in 2021 and 2022 were at their lowest levels since 1993.

    That said, the job market has cooled a bit — but it’s still running hot, with a high level of job openings per job seeker.

    The overall slowdown in hiring is likely to continue, with employers more likely to reinstate performance-improvement plans for underperforming employees and performance-related layoffs, Challenger predicts.

    And, of course, should there be a real recession, the layoffs would cut much deeper.

    While there is still tension between executives and employees about how many days people should be physically present at work, hybrid work and work flexibility isn’t going away.

    “Today, the majority of employers (66%) are permitting hybrid working and an additional 9% give employees the option to work from home every day,” according to benefits consulting firm Mercer.

    Nevertheless, this may be the year employers start to actually enforce their minimum-days-in-the-office mandates, Challenger said.

    Just this week, for example, Disney CEO Bob Iger ordered employees to return to corporate offices four days a week beginning March 1.

    Front-line employees like retail workers, health care aides and security guards, whose jobs require them always to be on site, may be offered other forms of flexibility, said Emily Rose McRae, senior director of research at Gartner, a workplace consulting firm.

    That could include being given a regular schedule, as opposed to working “on demand,” where they don’t know their schedule in advance, McRae said. It also could mean getting more paid leave, or that front-line workers could opt out of working certain shifts or certain days.

    McRae said she sees more employers offering what she calls “proactive rest” options this year.

    The idea is to actively help people recover before becoming fully depleted not only by work, but by the upending of their lives from the pandemic and the social and political upheaval of the past few years.

    “The big shift is in recognizing our work force is in trouble,” McRae said.

    Proactive rest can take many forms. Some employers may offer days off — whether it’s a whole week or just one day a week for a set period of time. Or it could simply mean branding a given workday as a no-meeting day.

    Information technology professionals will continue to win the day at work when it comes to who gets the biggest raises and bonuses.

    “Most organizations are anticipating the talent market to remain as competitive, or more competitive, at least in the first half of this year,” said Tony Guadagni, a senior principal in Gartner’s HR practice. “They will do what they have to to attract that critical talent.”

    Employers’ projected increases for this year in terms of merit increases (3.9%) and total pay (4.3%) are the highest they’ve been in 15 years, according to workplace consulting firm Mercer. But given that inflation is still pacing higher than those levels, you may not feel the raise you get is making a huge difference in what you can afford — unless your skills are in high demand.

    It used to be difficult to figure out whether you were being paid competitively for your talents, since companies weren’t open about what they paid others and colleagues wouldn’t discuss their pay.

    But now that New York City, the state of California, and a handful of other states and localities have implemented pay transparency rules for job postings, it will be easier in 2023 to confirm you’re being paid fairly relative to your teammates, and to determine the salary range on offer if you’re looking for a new job.

    Still, these laws are very new, and companies have not been uniform in how they’re handling the new rules. Some recent job postings, for instance, have advertised unhelpfully wide pay ranges — think $50,000 to $200,000.

    Beyond the big benefits employers typically offer full-time staffers (e.g., subsidized health insurance, a 401(k) match, etc.), they also offer a range of secondary benefits or perks, such as tuition reimbursement, supplemental life insurance, a stipend for home office supplies or financial coaching.

    Gartner and Mercer are seeing more companies let employees decide how best to spend these perk dollars by letting them direct a fixed amount of money across the secondary benefits that are most important to them.

    Your organization may engage in “quiet hiring” this year, if it hasn’t already.

    It’s a misleading term, in that it is neither quiet nor does it involve actual hiring.

    Rather, your company will want to repurpose existing employees — possibly you, if you have relevant skills — for the employer’s highest priority projects this year.

    That could be a great opportunity if you hate being limited to the same tasks of your official job, or if you want to develop new skills and work with new people in your company.

    It also could be highly frustrating, especially if a company is simply putting everyone on rotation to make sure understaffed, critical tasks get done by anyone with the adequate skills to do so.

    Either way, “quiet hiring” may offer an initial taste of a broader trend likely to unfold over the next several years that could spell the end of “jobs” — and specifically job descriptions as we know them, according to consulting firm Deloitte.

    That’s because many employers want to transition away from being a jobs-based organization to a skills-based one so they can quickly adapt to change, address talent shortages and provide their workforce with opportunities to develop professionally, said Arthur Mazor, a principal global leader at Deloitte’s Human Capital Practice.

    So instead of viewing you as a holder of Job X, your company is likely to view you as a person with an array of skills that can be deployed in many ways.

    Early adopters this year can be found across various industries, Mazor said — from software makers to auto manufacturers to financial services to health care.

    Even at companies that have not formalized a shift to being a skills-based organization, the change is happening anyway. Roughly 70% of workers say they’re already doing work outside of their job, according to Deloitte.

    One recent example, cited in Deloitte’s latest work report, comes from M&T Bank, a leading Small Business Administration lender. Its chief talent officer told the firm, “when the Paycheck Protection Program was rolled out during the pandemic, we had to stop thinking about jobs and start thinking about skills. … By focusing on skills versus jobs — and rapidly mobilizing talent in an agile way — we outperformed our peers.”

    It’s too early to determine exactly how this will play out for employees, in terms of incentives offered for switching to a new project or pinch-hitting for another department, how an employee’s work will be assessed and rewarded, and how much say they will get in the projects assigned.

    But done right, Mazor said, employees should have the opportunity to share on an internal database their skills and what areas they wish to develop before being matched with a new assignment.

    “This isn’t a clandestine effort. It involves worker input.”

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  • Two months after mass Twitter layoffs, affected employees still waiting for severance offers | CNN Business

    Two months after mass Twitter layoffs, affected employees still waiting for severance offers | CNN Business

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    New York
    CNN
     — 

    Two months after Elon Musk laid off half of Twitter’s workforce, some employees affected say they have yet to receive any formal severance offer or separation agreement.

    One former Twitter employee told CNN that they had expected to receive some information from the company by Wednesday, the last official employment date for many workers affected by the first wave of layoffs under Musk based on state and federal notice period regulations.

    As of early Thursday, however, the former employee said they had yet to receive any documents related to a severance agreement or offer. Other laid-off employees tweeted similar remarks this week, including one who said they had “never even seen a severance letter let alone been offered severance.”

    A spokesperson for Shannon Liss-Riordan, the attorney representing hundreds of former Twitter employees, confirmed that her clients who were hit by the Twitter layoffs in early November also had yet to receive any severance information as of Thursday. “There was some anticipation that they would be sent yesterday, but we haven’t seen that,” Kevin Ready, the spokesperson, said of the severance agreements.

    “Yesterday was the official separation date for thousands of Twitter employees, and after months of chaos and uncertainty created by Elon Musk, these workers remain in the lurch,” Liss-Riordan said in a Thursday statement.

    The employee concerns come as Musk scrambles to cut costs at the company he bought in October for $44 billion, including a significant amount of debt. After laying off half the company in early November, Musk continued cutting and pushing out additional employees, including by requiring anyone who remained to sign a pledge committing to “hardcore” work.

    The company was recently sued by a commercial landlord and a private flight company alleging Twitter has failed to pay bills. And The New York Times last month reported that Twitter was considering denying laid off employees their severance as a cost-cutting measure, citing people familiar with the talks among company leadership, adding to the sense of uncertainty for affected workers.

    Twitter, which cut much of its public relations department as part of the layoffs, did not immediately respond to a request for comment regarding the claims it has not offered or paid any severance. At the time of the layoffs, Musk promised that “everyone exited was offered 3 months of severance,” a time period that appears to include the 60-days advanced notice Twitter was obligated to provide.

    A report by Fortune on Thursday afternoon, citing an unnamed source familiar with the situation and screenshots viewed by the publication, said that Twitter planned to send severance agreements to affected employees on Thursday, although it was unclear exactly when they would go out. The severance agreements were set to provide laid off US employees with one month’s base pay and would include a provision requiring employees to waive participation in pending lawsuits against the company, according to the report.

    Liss-Riordan has filed four proposed class action lawsuits against Twitter on behalf of employees affected by layoffs, with claims including that Twitter backtracked on promises to allow remote work and consistent severance benefits, as well as complaints related to alleged disability and gender-based discrimination. She has also filed three claims against Twitter with the National Labor Relations Board on behalf of former employees. Liss-Riordan said Thursday that she has also filed another 100 demands for arbitration against Twitter on behalf of former employees, after filing an initial 100 last month.

    Last month, the employees represented by Liss-Riordan scored an early win in court when a judge ordered Twitter to inform laid-off employees of the pending lawsuits before asking them to sign any separation agreements that include a release of legal claims.

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  • LinkedIn is having a moment thanks to a wave of layoffs | CNN Business

    LinkedIn is having a moment thanks to a wave of layoffs | CNN Business

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    New York
    CNN
     — 

    In a normal year at this time, a typical LinkedIn feed might be full of posts about year-end reflections on leadership and professional goals and suggested lifehacks for the year ahead — possibly with a few posts from CMOs offering tips on brand strategy, for good measure.

    Those posts are still there. But mixed in are many others about job hunts, offers of support for laid off friends and colleagues, and advice for coping with career hurdles in an uncertain economic environment.

    Some LinkedIn users affected by recent layoffs have formed groups on the site aimed at providing assistance, coordinating around signing exit paperwork and aiding with connections for new jobs. One LinkedIn group of employees affected by the November layoffs at Facebook-parent Meta, for example, now has more than 200 members. Even bosses who are doing the laying off have turned to LinkedIn to explain themselves and seek support or advice, as one marketing CEO did in a post alongside a tearful selfie last year (to mixed results).

    If the first year of the pandemic was marked by widespread layoffs in lower paying retail and services jobs, the past few months have been defined by something different: the prospect of a white-collar recession. Even as the overall job market remains strong, there has been a wave of recent layoffs in the tech and media industries — which just so happen to make up a core part of LinkedIn’s user base. Suddenly, the normally staid professional network has become both a vital lifeline for recently laid off workers and a surprisingly lively social platform.

    The LinkedIn mobile app was downloaded an estimated 58.4 million times worldwide in 2022 across the Google Play and Apple app stores, up 10% from the prior year, according to research firm Sensor Tower.

    The number of posts on LinkedIn mentioning “open to work” were up 22% during November compared to the same period in the prior year, according to data provided by the company. LinkedIn says it also saw a steady increase in the rate of users adding connections last year compared to the year prior, a sign that users were more active on the platform.

    The uptick in use appears to have been good for LinkedIn’s business. The platform posted 17% year-over-year revenue growth in the three months ended in September, according to parent company Microsoft’s most recent earnings report. Microsoft CEO Satya Nadella told analysts in the October earnings call that LinkedIn was seeing “record engagement” among its 875 million members, with growth accelerating especially in international markets.

    Some of LinkedIn’s momentum may predate the wave of layoffs. “There’s been an uptick in [LinkedIn use] since the pandemic,” said Jennifer Grygiel, an associate professor and social media expert at Syracuse University. “You had to do social distancing and we were quarantining and people were working remotely so there was a shift in real-life networking possibilities.”

    LinkedIn rose to the occasion — and now it may be rising to another one.

    Even apart from the layoffs, the social media landscape has been through a volatile year. Facebook and Instagram have been criticized by users for racing to turn their services into TikTok. TikTok has been criticized over concerns that user data could end up in the hands of the Chinese government. And after Elon Musk’s takeover of Twitter late last year, the platform has been criticized for morphing into a possible haven for its most incendiary users.

    But LinkedIn remains, as ever, LinkedIn — and at this moment, with fears of a looming recession and career concerns top of mind, LinkedIn may be just what the digital world needs.

    Grygiel said many people working in media or academia are likely now looking for somewhere to build and engage in professional communities other than Twitter. And while upstart Twitter alternatives like Mastodon have experienced a surge in growth, they still don’t have the same sort of network effect that comes with a legacy platform’s broad user base.

    LinkedIn in recent years has leaned into courting influencers who regularly post content to the site, potentially giving users more reasons to visit. And the platform has been growing its “learning” section, which provides video courses taught by various industry experts and which the company says experienced a 17% increase in hours spent as of November compared to the year prior. But lately it appears users have more than enough reason to use LinkedIn amid a wave of thousands of layoffs.

    Perhaps the clearest and most public examples of LinkedIn’s new centrality came from rival social networks like Twitter.

    In the wake of Twitter’s November mass layoffs — in which half the company was terminated, followed by additional firings and exits — many former and remaining employees took to LinkedIn, rather than the platform they had built, to seek support, community and new opportunities.

    One group of Twitter employees created a spreadsheet of laid-off workers from the company alongside recruiters hiring for other firms, and used LinkedIn to help facilitate sign-ups. Another pair of former Twitter employees set up a system to connect job hunters with recruitment professionals open to volunteering to provide free resume review and interview prep services, which they promoted through LinkedIn.

    “We completely understand how the job-hunting process can be scary and overwhelming … While we can’t guarantee where your next opportunity will be or when it will come, we can offer guidance, so you will be ready for that opportunity when it arrives,” Darnell Gilet, a former Twitter senior technical recruiter who helped coordinate the effort, said in a LinkedIn post.

    Gilet, who was affected by the mass layoffs at Twitter in November following Elon Musk’s takeover, told CNN last month that around 28 different recruiters and talent acquisition professionals had agreed to participate in the system, and that he himself had spoken to nearly two dozen job seekers since shortly after he was laid off to offer advice and support. He said LinkedIn seemed like the obvious place to promote the service.

    “Chaos creates opportunity for somebody, right?” Gilet said. “People are getting laid off and you have this recession that’s looming, the ideal place … that would have the greatest growth opportunity from that would be a platform that’s focused on careers like LinkedIn. So it makes perfect sense.”

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  • Twitter layoffs continue under Elon Musk | CNN Business

    Twitter layoffs continue under Elon Musk | CNN Business

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    CNN
     — 

    Additional Twitter employees were terminated Thursday as part of ongoing, rolling layoffs under new owner Elon Musk, including from the public policy and media and entertainment teams, according to tweets from affected employees.

    As part of Thursday’s layoffs, the members of Twitter’s public policy team who had remained following last month’s mass layoffs were again cut down by about half to around 15 employees, a former Twitter employee with knowledge of the layoffs told CNN.

    Among the public policy team’s responsibilities are working with outside advisory groups such as the Twitter Trust and Safety Council, which the company disbanded earlier this month. It also manages human rights programs to protect vulnerable users like activists, engages in transparency efforts, works with government agencies and helps to ensure compliance with global regulations. The public policy team had more than 60 employees prior to Musk’s takeover, the former employee said.

    Thursday’s exits come after Musk laid off about half of Twitter’s workforce last month shortly after his takeover, and later pushed out additional employees, including through an ultimatum requiring them to work “hardcore” or exit the company. Musk’s team — seeking to cut costs at the struggling company that the billionaire purchased for $44 billion — has continued to lay off hundreds of additional Twitter staff since then, including top engineering and legal talent, according to the former employee and multiple recent reports.

    More than 100 former Twitter employees have filed demands for arbitration or are participating in proposed class action lawsuits related to the layoffs.

    The latest round of layoffs could further affect Twitter’s ability to protect key users and comply with regulations amid heightened scrutiny of the company following Musk’s takeover.

    Thierry Breton, a top EU official, warned Musk in a meeting last month that the social media platform must take significant steps to comply with EU content moderation laws, and that European officials will be monitoring closely for compliance. Musk has agreed to let EU officials “stress test” the social media platform for compliance with the Digital Services Act, Europe’s new platform regulation, early next year.

    Twitter also continues to struggle with the exit of many of its advertisers, which provide most of the company’s revenue. As of December 17, 72 of Twitter’s top 100 advertisers had paused ad campaigns on the platform, according to a review by digital marketing intelligence firm Pathmatics, which it provided to CNN.

    In the meantime, Musk may be considering finding someone else to head the social platform, after Twitter users voted over the weekend for him to step down as CEO. Musk tweeted this week that he would leave the top role “as soon as I find someone foolish enough to take the job!”

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  • Twitter hit by legal complaints from 100 former employees following Musk’s layoffs | CNN Business

    Twitter hit by legal complaints from 100 former employees following Musk’s layoffs | CNN Business

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    New York
    CNN
     — 

    Twitter has been hit with allegations from 100 former employees affected by mass layoffs at the company, including that it unfairly laid off more women than men, terminated employees who were actively on medical or parental leave and reneged on promises related to severance pay.

    The allegations were included as part of the former employees’ demands for arbitration against the company, according to a statement on Tuesday by attorney Shannon Liss-Riordan.

    Liss-Riordan is the same attorney who has brought four proposed class action lawsuits against Twitter by former employees affected by Elon Musk’s takeover. The arbitration demands are meant to help workers who can’t participate in that litigation because of contracts they signed with the company.

    Claims in the arbitration demands mirror those in the lawsuits. Some also claim that Musk placed “unreasonable demands” on Twitter’s workforce in an effort to shrink its staff, according to the statement.

    “The conduct of Twitter since Musk took over is incredibly egregious, and we will pursue every avenue to protect workers and extract from Twitter the compensation that is due to them,” Liss-Riordan said in the statement. She added that her firm has heard from hundreds of former Twitter employees and has filed only the “first wave” of arbitration demands.

    “We are ready to fight them one by one, on behalf of potentially thousands of employees if that becomes necessary,” she said.

    Liss-Riordan previously brought three proposed class action suits on behalf of female employees, disabled employees and contractors who were laid off. Another suit was filed by a group of former employees who accuse Twitter of breach of contract because it allegedly failed to follow through on promises to allow remote work and provide consistent severance benefits after the acquisition.

    Twitter, which recently laid off much of its communications department, did not immediately respond to a request for comment regarding the arbitration demands. Twitter has denied the breach of contract allegations in the lawsuit brought by former employees about remote work and severance, and it has not responded to the claims in the three other suits.

    Liss-Riordan has also filed three complaints against Twitter with the National Labor Relations Board on behalf of employees affected by the layoffs.

    The mounting claims by former employees come after Twitter terminated about half of its staff in a mass layoff last month shortly after Musk’s takeover. Musk later pushed out hundreds of additional employees, including by requiring them to agree to an ultimatum to work “extremely hardcore” or leave the company.

    The former employees suing Twitter scored an early win last week when a judge ruled in favor of their motion ordering the company to alert all laid-off employees of the pending lawsuits before requiring them to sign severance agreements waiving their rights to litigation.

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  • Amazon CEO explains thinking behind layoffs as unionized warehouse workers protest outside | CNN Business

    Amazon CEO explains thinking behind layoffs as unionized warehouse workers protest outside | CNN Business

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    CNN Business
     — 

    Amazon CEO Andy Jassy on Wednesday said an “uncertain” economy pushed the e-commerce giant to move forward with rare and wide-ranging layoffs after having gone on a significant hiring spree for much of the pandemic.

    “We had the lens of a very uncertain economic environment, as well as our having hired very aggressively over the last several years,” Jassy said in an interview at the New York Times DealBook summit on Wednesday. “We just felt like we needed to streamline our costs.”

    The remarks came as part of Jassy’s first interview since Amazon

    (AMZN)     confirmed earlier this month it had begun laying off corporate workers, with plans for layoffs to continue into early next year. The company is reportedly planning to cut up to 10,000 employees, though it has not confirmed a figure.

    Amazon, more than most tech companies, experienced a staggering pandemic boom as more customers shifted their spending online during the health crisis. Like other tech companies, it has since changed course and begun cutting employees as it confronts a shift in demand as well as rising inflation and recession fears.

    “A lot has happened in the last few years that I’m not sure people anticipated,” Jassy said. “You just look in 2020, our retail business grew 39% year-over-year, at a $245 billion annual run rate, which is unprecedented, and it forced us to make decisions in that time to spend a lot more money and to go much faster in building infrastructure than we ever imagined we would.”

    “We built a physical fulfillment center footprint over 25 years that we doubled in 24 months,” Jassy said.

    Even so, Jassy said he thinks the team “made the right decision” regarding its infrastructure build out. Regarding the hiring spree, Jassy said he now looks at is as a “lesson for everyone.”

    “I don’t necessarily think it was the wrong thing to have been doubling down, because we were growing so well and we had so many ideas that we thought were good for customers and good for the business, but I think it’s a good lesson, I think, for everybody,” Jassy said. “When you’re hiring, even when things are going really well, that it’s good to think about if there’s some kind of sudden change, even one that you just have a little bit of a hard time imagining. Would you like the incremental headcount that you’re adding at that time, or do you want to be a little bit more conservative?”

    As Jassy spoke, Amazon warehouse workers who helped organize the company’s first-ever US labor union at a Staten Island facility gathered in the rain outside of the venue to protest their chief executive’s appearance in New York.

    Despite the landmark union victory in April, Amazon has so far refused to formally recognize the grassroots worker group known as the Amazon Labor Union, or come to the bargaining table. The company has aggressively pushed back against the workers’ victory through the National Labor Relations Board (NLRB).

    While the NLRB battle indicates the labor union is on the cusp of being certified, Jassy suggested Amazon’s legal battle with the worker group isn’t done yet. He said there “were a lot of irregularities in that vote,” which is why the company filed objections with the NLRB. (Amazon’s objections were previously rejected by an NLRB hearing officer.)

    Jassy also emphasized that the last two Amazon union elections held resulted in workers voting not to unionize, and that Amazon prefers to have a direct relationship with fulfillment center workers rather than going through unions.

    Labor activist Chris Smalls joins members of the Amazon labor union and others for a protest outside of the New York Times DealBook Summit as Amazon's CEO, Andy Jassy, will be appearing on November 30, 2022 in New York City.

    “In my own opinion on where we are with that legal process is that we’re far from over with it,” Jassy said. “I think that it’s going to work its way through the NLRB, it’s probably unlikely the NLRB is going to rule against itself, and that has a real chance to end up in federal courts.”

    In an interview with CNN Business ahead of Jassy’s remarks, Amazon Labor Union President Chris Smalls slammed that Jassy “even had the audacity to feel comfortable to come to New York City knowing that we haven’t negotiated anything yet.”

    “We definitely want to take this opportunity to let him know that the workers are waiting and we are ready to negotiate our first contract,” he added of the demonstration, which he called a “welcoming party” for Jassy.

    Smalls said he’s been contacted by a few laid-off Amazon employees in corporate roles, who have since grown interested in the protections of unions. “I tell them — you may have good salary, you may have good perks, you may got good stocks and benefits, obviously better than warehouse workers, but at the end of the day, you’re still an at-will employee,” Smalls said.

    “I explained to them, the one building that can’t be touched right now by mass layoffs is JFK8 Staten Island,” he said. “I encourage them to do what they have to do, if that means form a union, so be it, we support it.”

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  • DoorDash to lay off 1,250 corporate employees | CNN Business

    DoorDash to lay off 1,250 corporate employees | CNN Business

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    CNN
     — 

    DoorDash on Wednesday said it will lay off about 1,250 corporate employees after growing its team too quickly during the pandemic, making it the latest tech company to cut staff in recent weeks.

    The cuts represent about 6% of DoorDash’s staff, according to a company spokesperson.

    DoorDash CEO Tony Xu shared the layoff news in a memo to staff early Wednesday, calling it “the most difficult change to DoorDash that I’ve had to announce in our almost 10-year history.”

    “If you are among those impacted, I am truly sorry and I apologize to have some of you wake up to this news as opposed to reading it during more normal hours,” Xu added.

    Like other tech companies, DoorDash experienced a pandemic boom as more consumers embraced online deliveries and shied away from stores and restaurants amid the health crisis. Xu said that DoorDash “sped up our hiring to catch up with our growth and started many new businesses in response to feedback from our audiences.”

    While “most of our investments are paying off,” Xu wrote, “we were not as rigorous as we should have been in managing our team growth.” He added: “That’s on me. As a result, operating expenses grew quickly.”

    A wave of layoffs have spread throughout the tech industry recently as companies react to rising inflation, looming recession fears, and a shift in pandemic demand. Meta, Twitter, and Amazon have all announced significant job cuts, with the heads of some of these companies admitting to misreading pandemic demand.

    In his memo, Xu nodded to the shifting economic climate. “We too are not immune to the external challenges and growth has tapered vs our pandemic growth rates,” he wrote.

    Shares of DoorDash are down more than 60% so far this year.

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  • As Meta and Twitter slash staff, TikTok plans to keep hiring | CNN Business

    As Meta and Twitter slash staff, TikTok plans to keep hiring | CNN Business

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    CNN
     — 

    While much of Silicon Valley is grappling with hiring freezes and job cuts, at least one social media company is still planning to keep hiring: TikTok.

    The short-form video app remains committed to its goal of hiring nearly 1,000 engineers at its Mountain View office, a person familiar with the matter confirmed to CNN on Monday. This specific hiring target is related to the company’s goal of ensuring US user data is overseen by a team based in the United States amid scrutiny in Washington due to its parent company ByteDance’s ties to China.

    News of TikTok’s hiring plans was first reported by The Information.

    TikTok CEO Shou Zi Chew confirmed that the company was still recruiting during remarks last week at the Bloomberg New Economy Forum in Singapore, in response to the topic of layoffs at other tech companies, including Facebook-parent Meta and Amazon.

    “We have always been more cautious in terms of recruitment,” Chew said at the conference. “At this stage of our growth, I think that our pace, our cadence, of hiring is just right for us.”

    In recent weeks, Meta said it was cutting 11,000 jobs across the company, Twitter cut about half its staff under new owner Elon Musk, and Amazon confirmed that it had begun wide-ranging layoffs. Current and former leaders of these companies have said they expanded too fast, particularly during the pandemic as consumers shifted their lives online. Now these same tech companies are facing whiplash in demand and cutting thousands of positions as broader economic conditions crumble and recession fears mount.

    The shift in the hiring landscape in Silicon Valley could help TikTok as it looks to appease critics and cement its position in the United States, and also as it works to expand into new product categories.

    TikTok’s career portal website currently lists more than 4,000 global positions, though it is not clear how often the hiring site is updated. In October, as some of the initial reports of hiring freezes and other cost-cutting measures began to emerge from Silicon Valley, TikTok made headlines for listing a number of new e-commerce-related roles that seemed to indicate it was looking to create a logistics and warehousing network in the United States.

    “We are still hiring,” Chew said at the conference last week, “although, you know, at a pace that we think has corresponds with the global challenges that we’re facing.”

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  • HP says it will lay off up to 6,000 workers over the next couple years | CNN Business

    HP says it will lay off up to 6,000 workers over the next couple years | CNN Business

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    CNN Business
     — 

    HP Inc. announced on Tuesday that it will lay off thousands of workers over the next three years, becoming the latest tech company to significantly downsize staffing amid a souring economic climate.

    The computer maker disclosed the major job cuts in a statement accompanying its lackluster quarterly earnings report on Tuesday afternoon, where it also said sales dropped more than 11% compared to the same period last year.

    “The company expects to reduce gross global headcount by approximately 4,000-6,000 employees,” HP said. “These actions are expected to be completed by the end of fiscal 2025.”

    HP had previously reported having a global headcount of

    some 51,000 employees.

    HP President and CEO Enrique Lores added in a statement that the company’s so-called “Future Ready strategy” will “enable us to better serve our customers and drive long-term value creation by reducing our costs and reinvesting in key growth initiatives to position our business for the future.”

    The news makes HP the latest in a growing list of once-high-flying tech companies that are now announcing significant job cuts. Facebook-parent Meta recently said it was cutting 11,000 jobs across the company, and Amazon

    (AMZN)     confirmed last week that wide-ranging layoffs had begun at the e-commerce giant that would continue into next year.

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  • Twitter Africa employees accuse Elon Musk of discrimination over severance terms | CNN Business

    Twitter Africa employees accuse Elon Musk of discrimination over severance terms | CNN Business

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    CNN Business
     — 

    Laid-off employees at Twitter’s Africa headquarters are accusing Twitter of “deliberately and recklessly flouting the laws of Ghana” and trying to “silence and intimidate” them after they were fired.

    The team has hired a lawyer and sent a letter to the company demanding it comply with the West African nation’s labor laws, provide them with additional severance pay and other relevant benefits, in line with what other Twitter employees will receive.

    They have also petitioned the Ghanaian government to compel Twitter to “adhere to the laws of Ghana on redundancy and offer the employees a fair and just negotiation and redundancy pay,” according to a letter to the country’s Chief Labour Officer obtained by CNN.

    “It is clear that Twitter, Inc. under Mr Elon Musk is either deliberately or recklessly flouting the laws of Ghana, is operating in bad faith and in a manner that seeks to silence and intimidate former employees into accepting any terms unilaterally thrown at them,” the letter states.

    Twitter laid off all but one of the African employees just four days after the company opened a physical office in the capital Accra following Musk’s takeover. But the staff of about a dozen were not offered severance pay, which they say is required by Ghana’s labor laws, based on their employment contracts. They also claim they were not informed about the next steps — unlike employees in the United States and Europe — until a day after CNN reported on their situation.

    CNN contacted Twitter for comment but received no response.

    In the letter to Twitter Ghana Ltd, obtained by CNN, the African employees rejected a “Ghana Mutual Separation Agreement” from Twitter, which they say was sent to their personal emails offering final pay that the company claims to have been arrived at after a negotiation.

    Several members of the team and their lawyer told CNN that there was no such negotiation on severance pay. They claim it was below what is required by law and contradicts what Musk tweeted that departing employees would receive.

    “Everyone exited was offered 3 months of severance, which is 50% more than legally required,” Musk tweeted. Twitter informed the Ghana-based employees in early November that they would be paid until their last day of employment — December 4. And they will continue to receive full pay and benefits during the 30-day notice period.

    “It was very vague, did not talk about outstanding leave or paid time off, and just asked us to sign if we agree. I never bothered to go back to the document because it is rubbish and is still in violation of labor laws here,” one former employee told CNN on condition of anonymity.

    The Accra-based team accuses Twitter of dealing with them in bad faith, not being transparent, and discriminating against them compared to laid-off employees in other jurisdictions.

    “The employees are distressed, humiliated, and intimidated by this turn of events. There are non-Ghanaian employees, some with young families, who moved here to take up jobs and have now been left unceremoniously in the lurch, with no provision for repatriation expenses and no way to communicate with Twitter, Inc. and discuss or plead their case,” the notice to Ghana’s Chief Labour Officer says.

    Their attorney, Carla Olympio, says the sudden termination of almost the whole team violated Ghanaian employment law because it is considered a “redundancy” which requires three-month notice to authorities and a negotiation on redundancy pay.

    “In stark contrast to internal company assurances given to Twitter employees worldwide prior to the takeover, it seems that little attempt was made to comply with Ghana’s labor laws, and the protections enshrined therein for workers in circumstances where companies are undertaking mass layoffs due to a restructuring or reorganization,” she wrote in a statement to CNN.

    The employees said in their appeal to Ghana’s Chief Labour Officer that Twitter’s formal entry into the continent started with “great fanfare and with the support of the government,” and they expect similar attention to their plight now.

    They are demanding 3 months’ gross salary as severance pay, repatriation expenses for non-Ghanaian staff, vesting of stock options provided in their contracts, and other benefits such as healthcare continuation that were offered to staff worldwide.

    CNN has reached out to Ghana’s Employment and Labor Relations ministry for comment.

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  • Airbnb CEO on the tech downturn: ‘It’s like we’re all in a nightclub and the lights just came on’ | CNN Business

    Airbnb CEO on the tech downturn: ‘It’s like we’re all in a nightclub and the lights just came on’ | CNN Business

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    CNN
     — 

    After years of seemingly unstoppable growth, the tech industry is now facing the “ultimate reality check” as it confronts broader economic uncertainty and waves of layoffs, Airbnb CEO Brian Chesky told CNN on Thursday.

    “It’s like we’re all in a nightclub and the lights just came on,” Chesky said in an interview on “CNN This Morning.” After a period of “exuberance and euphoria,” he added, “now we all have to, like, take a hard look at things.”

    His remarks come at a difficult moment for the tech industry. Facebook-parent Meta said last week it was cutting 11,000 jobs after nearly doubling its staff during the pandemic. Amazon confirmed this week that lay offs had begun in its corporate workforce, with reports saying it plans to cut 10,000 positions. And Twitter recently cut approximately 50% of its staff as new owner Elon Musk races to bolster its bottom line.

    Airbnb may be an exception. Chesky said the company is not undergoing layoffs at this time, and in fact is hiring. But that is due in large part to the company cutting 25% of its staff at the start of the pandemic as the travel industry was clobbered, and losing more employees by attrition after.

    “Two-and-a-half years ago, we lost 80% of our business in eight weeks,” Chesky said. “People were predicting we were going to go out of business.”

    “We just hunkered down,” he added. “We rebuilt the company from the ground up, and we stayed really lean.” Now, Chesky said, “we’re stepping on the gas, we’re not putting on the brakes.”

    While the reckoning hitting much of Silicon Valley is painful, Chesky appeared to suggest that a more sober reassessment of the industry could also provide an opportunity for the tech sector to rethink its place in society, after years of criticism for the impact its products can have on people.

    “I think Silicon Valley has done so many amazing things for the world, but we have to be careful having a fetishization of new technology, as if the new technology is going to solve all the problems that the last technology created,” Chesky said. “We need more diversity in Silicon Valley, but that diversity should not just be demographic diversity. We need artists, humanists in this industry.”

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  • Why foreign workers in the US are especially vulnerable to the Twitter turmoil | CNN Politics

    Why foreign workers in the US are especially vulnerable to the Twitter turmoil | CNN Politics

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    CNN
     — 

    Twitter employees who are relying on the company for work visas have been left in limbo, finding themselves at the whims of its new billionaire owner, knowing if they quit, they may have to leave the United States.

    Earlier this week, Elon Musk gave remaining staff an ultimatum to commit to working “hardcore” or to leave. But some staff who would like to leave the company feel like they can’t because doing so, may leave them no choice but to depart the US, multiple former Twitter employees told CNN.

    Tech companies in the US, including Twitter, have leaned on an employment-based visa, known as H-1B, to bring skilled foreign workers into the country. The program allows companies in the US to employ foreign workers in high-skilled occupations like architecture, engineering, mathematics, among other fields.

    In fiscal year 2022, Twitter had nearly 300 people approved to work on H-1B visas, according to US Citizenship and Immigration Services data. It’s unclear how many have chosen to stay.

    Facebook – another company that’s undergoing mass layoffs – had more than 1,300 people approved to work on H-1B visas, the data shows.

    Employees on temporary visas, like H-1B or other work visas, are especially vulnerable to the layoffs happening at Twitter and across the tech industry. Some staff who were on employment-based visas and have already been laid off by Musk have found themselves scrambling.

    “Firing folks who are on a H-1B in a major economic downturn is not just putting them out of the job, it’s tantamount to ruining their lives,” one former employee told CNN, adding that some people who had accepted Musk’s ultimatum had accepted it “out of self-preservation.”

    Twitter users are flocking to Mastodon. What is it?

    Fiona McEntee, an immigration lawyer based in Chicago, represents immigrants who are on H-1B visas and are part of the recent tech layoffs.

    While McEntee stressed everyone’s situation is unique, one of the primary challenges employees on H-1B visas face is that they have a limited window of time to find a new employer, adjust to another visa, or leave the United States. The 60-day grace period usually starts from the last day of employment.

    “It’s a short time period to line these things up.” McEntee said, noting that filing a visa transfer, for example, can take time. McEntee’s firm has been receiving multiple calls from people affected by the layoffs who are concerned about next steps.

    “A layoff is hard enough on people to begin with but when you’re faced with having to leave what’s been your home for a significant time, it adds a whole layer of trauma to this,” she told CNN.

    One former Twitter employee described the challenges facing a former colleague who is in the US with his family on an employment-based visa and now faces the prospect of having to leave.

    For that reason, some staff at Twitter who are on H-1B visas are staying on despite wanting to leave the company, a former employee told CNN, adding that they’re “concerned with being forced into a flooded job market where they may be unable to find a job and before being forced out of the country.”

    The US Department of Homeland Security issues 65,000 H-1B visas annually as mandated by Congress, in addition to another 20,000 for those who have a masters’ degree or doctorate from a US university. The visa can be granted for up to six years.

    “These are people who didn’t just necessarily arrive last year or the year before, or even when they were approved,” said David Bier, associate director of immigration studies at the Cato Institute. Bier noted that some people may have been working for Twitter under a different visa before being hired on an H-1B.

    “Many of these people will have been in this country for over a decade,” Bier said.

    One former Twitter employee stressed the importance of visa holders and their contribution to US innovation and technological leadership.

    “For companies to turn their backs on them now is particularly callous and destructive and undermines the trust talented people have around in the world in the hope of America and its opportunities,” they added.

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  • Fed officials crushed investors’ hopes this week | CNN Business

    Fed officials crushed investors’ hopes this week | CNN Business

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    New York
    CNN Business
     — 

    Investors sleuthing for clues about what the Federal Reserve will decide during its December policy meeting got quite a few this week. But those hints about the future of monetary policy point to an outcome they won’t be very happy about.

    What’s happening: Federal Reserve officials made a series of speeches this week indicating that aggressive interest rate hikes to fight inflation would continue, souring investors’ hopes for a forthcoming central bank policy shift. On Thursday, St. Louis Federal Reserve President James Bullard said the central bank still has a lot of work to do before it brings inflation under control, sending the S&P 500 down more than 1% in early trading. It later pared losses.

    Bullard, a voting member on the rate-setting Federal Open Market Committee (FOMC), said that the moves the Fed has made so far to fight inflation haven’t been sufficient. “To attain a sufficiently restrictive level, the policy rate will need to be increased further,” he said.

    Those comments come a day after Kansas City Fed President Esther George, a voting member of the FOMC, said to The Wall Street Journal that she’s “looking at a labor market that is so tight, I don’t know how you continue to bring this level of inflation down without having some real slowing, and maybe we even have contraction in the economy to get there.”

    San Francisco Fed President Mary Daly added on Wednesday that a pause in rate hikes was “off the table.”

    A numbers game: Fed officials should increase interest rates to somewhere between 5% and 7% to tamp inflation, Bullard said Thursday. Those numbers shocked investors, as they would require a series of significant and economically painful hikes which increase the chance of a hard landing.

    The current interest rate sits between 3.75% and 4% and the median FOMC participant projected a peak funds rate of 4.5-4.75% in September. If those numbers hold steady, Fed members would only raise rates by another three-quarters of a percentage point.

    But Fed Chair Powell said at the November meeting that the projections are likely to rise in December and if Bullard is correct, that means investors can expect another one to three percentage points in rate hikes.

    Dreams of a pivot: October’s softer-than-expected CPI and producer price reading bolstered investors’ hopes that the Fed might ease its aggressive rate hikes and sent markets soaring to their best day since 2020 last week.

    But messaging from Fed officials this week has brought Wall Street back down to earth.

    That’s because market rallies help to expand the economy, said Liz Ann Sonders, Managing Director and Chief Investment Strategist at Charles Schwab, which is the opposite of what the Fed is trying to do with its tightening policy. Fed officials could be attempting to do some “jawboning” via excessively hawkish speeches in order to bring markets down, she said.

    The bottom line: Investors listen closely to Bullard’s comments because he’s known for having looser lips than other Fed officials, Peter Boockvar, chief investment officer of Bleakley Financial Group, wrote in a note Thursday. But his hawkish predictions may have been “overboard,” especially since he won’t be a voting member of the FOMC next year.

    Still, Wall Street analysts are listening. Goldman Sachs raised its peak fed funds rate forecast on Thursday to 5-5.25%, up from 4.75-5%.

    A series of high-profile layoffs have rattled Big Tech this month.

    Amazon confirmed that layoffs had begun at the company and would continue into next year, just days after multiple outlets reported the e-commerce giant planned to cut around 10,000 employees. Facebook-parent Meta recently announced 11,000 job cuts, the largest in the company’s history. Twitter also announced widespread job cuts after Elon Musk bought the company for $44 billion.

    The series of high-profile layoff announcements prompted fears that the labor market was weakening and that a recession could be around the corner.

    Those fears aren’t unwarranted: The Federal Reserve is actively working to slow economic growth and tighten financial conditions to rebalance the white-hot labor market. Further layoffs in both tech and other industries are likely inevitable as the Fed continues to raise interest rates.

    But this wave of layoffs isn’t as significant as headlines might lead Americans to believe. Thursday’s weekly jobless claims actually fell by 4,000 to 222,000 in spite of the surge in tech job cuts.

    In a note on Thursday Goldman Sachs analysts outlined three reasons why the layoffs may not point to a looming recession in the US.

    First off, the tech industry accounts for a small share of aggregate employment in the US. While information technology companies account for 26% of the S&P 500 market cap, it accounts for less than 0.3% of total employment.

    Second, tech job openings remain well above their pre-pandemic level, so laid-off tech workers should have good chances of finding new jobs.

    Finally, tech worker layoffs have frequently spiked in the past without a corresponding increase in total layoffs and have not historically been a leading indicator of broader labor market deterioration, Goldman analysts found.

    “The main problem in the labor market is still that labor demand is too strong, not too weak,” they concluded.

    Mortgage rates dropped sharply last week following a series of economic reports that indicated inflation may finally be easing, reports my colleague Anna Bahney

    The 30-year fixed-rate mortgage averaged 6.61% in the week ending November 17, down from 7.08% the week before, according to Freddie Mac, the largest weekly drop since 1981.

    But that’s still significantly higher than a year ago when the 30-year fixed rate stood at 3.10%.

    “While the decline in mortgage rates is welcome news, there is still a long road ahead for the housing market,” said Sam Khater, Freddie Mac’s chief economist. “Inflation remains elevated, the Federal Reserve is likely to keep interest rates high and consumers will continue to feel the impact.”

    Affording a home remains a challenge for many home buyers. Mortgage rates are expected to remain volatile for the rest of the year. And prices remain elevated in many areas, especially where there is a very limited inventory of available homes for sale.

    Meanwhile, inflation and rising interest rates mean many would-be buyers are also facing tightened budgets.

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  • Amazon CEO says job cuts will continue into next year | CNN Business

    Amazon CEO says job cuts will continue into next year | CNN Business

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    CNN Business
     — 

    Amazon CEO Andy Jassy said job cuts at the e-commerce giant would continue into early next year, in his first public remarks since the company began widespread layoffs earlier this week.

    “Our annual planning process extends into the new year, which means there will be more role reductions as leaders continue to make adjustments,” Jassy wrote in a letter to staff Thursday. “Those decisions will be shared with impacted employees and organizations early in 2023.”

    Jassy said that the company hasn’t “concluded yet exactly how many other roles will be impacted” by the layoffs, but added that “each leader will communicate to their respective teams when we have the details nailed down.”

    Amazon confirmed on Wednesday that layoffs had begun at the company, just days after multiple outlets reported the e-commerce giant planned to cut around 10,000 employees this week.

    Amazon

    (AMZN)     and other tech firms significantly ramped up hiring over the past couple of years as the pandemic shifted consumers’ habits toward e-commerce. Now, many of these seemingly untouchable tech companies are experiencing whiplash and laying off thousands of workers as people return to pre-pandemic habits and macroeconomic conditions deteriorate.

    Facebook-parent Meta recently announced 11,000 job cuts, the largest in the company’s history. Twitter also announced widespread job cuts after Elon Musk bought the company for $44 billion.

    Jassy alluded to the macroeconomic climate in his memo Thursday, saying this year’s annual operating review “is more difficult due to the fact that the economy remains in a challenging spot and we’ve hired rapidly the last several years.”

    Jassy said that this is the most difficult decision the company has had to make during his year-and-a-half tenure at Amazon’s helm.

    “It’s not lost on me or any of the leaders who make these decisions that these aren’t just roles we’re eliminating, but rather, people with emotions, ambitions, and responsibilities whose lives will be impacted,” Jassy wrote.

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  • Amazon confirms it has begun laying off employees | CNN Business

    Amazon confirms it has begun laying off employees | CNN Business

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    CNN
     — 

    Amazon confirmed on Wednesday that layoffs had begun at the company, two days after multiple outlets reported the e-commerce giant planned to cut around 10,000 employees this week.

    The initial cuts at Amazon will impact roles on the devices and services team, per a memo shared publicly by Dave Limp, senior vice president of devices & services at Amazon

    “After a deep set of reviews, we recently decided to consolidate some teams and programs. One of the consequences of these decisions is that some roles will no longer be required,” Limp said. “We notified impacted employees yesterday, and will continue to work closely with each individual to provide support, including assisting in finding new roles.”

    Limp did not specify how many employees have been cut.

    Amazon spokesperson Kelly Nantel told CNN Business in a statement that the company looks at all of its businesses as part of an annual operating review process. “As we’ve gone through this, given the current macro-economic environment (as well as several years of rapid hiring), some teams are making adjustments, which in some cases means certain roles are no longer necessary,” Nantel added.

    She continued: “We don’t take these decisions lightly, and we are working to support any employees who may be affected.”

    On Tuesday evening into Wednesday morning, many laid-off Amazon workers posted publicly on LinkedIn that they had been impacted by the job cuts and were looking for work. Some of these posts mentioned they were on teams involved with Amazon’s voice assistant, Alexa.

    Amazon and other tech firms significantly ramped up hiring over the past couple of years as the pandemic shifted consumers’ habits towards e-commerce. Now, many of these seemingly untouchable tech companies are experiencing whiplash and laying off thousands of workers as people return to pre-pandemic habits and macroeconomic conditions deteriorate.

    Facebook-parent Meta recently announced 11,000 job cuts, the largest in the company’s history. Twitter also announced widespread job cuts after Elon Musk bought the company for $44 billion, funded in part by debt financing.

    In a sobering sign of the times, a growing number of business leaders in the tech sector – from Meta CEO Mark Zuckerberg to Twitter co-founder Jack Dorsey – have been issuing remorseful apologies in recent weeks as their employees lose their livelihoods.

    After reaching record highs during the pandemic, shares of Amazon have shed more than 40% in 2022 so far.

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  • Twitter chaos spills into public view as Musk clashes with and fires employees on the platform | CNN Business

    Twitter chaos spills into public view as Musk clashes with and fires employees on the platform | CNN Business

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    New York
    CNN Business
     — 

    Elon Musk has publicly clashed with a growing number of Twitter employees about the state of the platform, and fired at least one of them in a tweet, in an unusually visible sign of corporate chaos after his $44 billion takeover of the influential company.

    Musk on Monday got into a dispute with software engineer Eric Frohnhoefer on Twitter that ended with the billionaire tweeting “he’s fired,” and Frohnhoefer confirming he’d lost access to Twitter’s internal systems. The public termination came after Frohnhoefer tweeted evidence suggesting that Musk was “wrong” about his claims that Twitter was running, in the billionaire’s words, “super slow” in various countries.

    Frohnhoefer told CNN Monday night that he found out about the firing when a friend sent him Musk’s tweet and said that “no one even reached out to me from Twitter.” Frohnhoefer added that he had been “willing to give it a try” under Musk and described himself as “in the wait-and-see camp,” but that “everything that has been reported is true.” He described working for Musk as a “total sh*t show” and the current state of affairs as pure “chaos.”

    At least one other employee who chimed in offering context on the issue had also been fired as of Tuesday morning, according to a tweet by that employee. And a handful of other Twitter employees said Tuesday on the platform that they were fired by an email that said their “behavior has violated company policy,” with some speculating that the move may have been a reaction to comments they made in internal Slack channels. Sources have indicated to CNN that employees in recent days had been very candid in criticism of Musk in the company’s Slack. (CNN has attempted to contact fired employees to confirm.)

    In response to a tweet about news of the firings Tuesday, Musk said, “I would like to apologize for firing these geniuses. Their immense talent will no doubt be of great use elsewhere.”

    The firings come after Musk slashed half of Twitter’s staff and, reportedly, many of its contractors, in a manner that many critics have described as slapdash and could put the platform at risk. Musk’s retribution for those who disagree with him also comes as he has cemented his control over the company by pushing out Twitter’s top execs and eliminating its board of directors.

    In their absence, Musk is now running Twitter with the help of friends Jason Calacanis and David Sacks; his personal lawyer Alex Spiro; and, reportedly, engineers on loan from some of his other companies, including Tesla

    (TSLA)    . In addition to the public pushback from employees, some Twitter staff appear to have tried to appeal to Musk and his inner circle privately as they weigh numerous disruptive changes to the platform.

    An internal document obtained by CNN indicates that employees had raised concerns to Musk and others about some of the fallout that would likely occur if Twitter rolled out its new, $8-per-month paid verification service. The document, which is dated November 1 and proved prescient in its predictions, provides a list of recommendations for how to avoid the most extreme potential consequences of rolling out a subscription whereby anyone could pay $8 to receive a verified check mark.

    “Legacy Verification provides a critical signal in enforcing impersonation rules, the loss of which is likely to lead to an increase in impersonation of high-profile accounts on Twitter,” the document states, adding that such issues could result in a loss of trust among high-profile users. It also raised concerns that the service could result in a “pay to play” system in which key voices that can’t or won’t pay for the subscription, such as “individuals in sanctioned countries (including dissenters and activists)” could be deprioritized.

    Esther Crawford, a Twitter product manager who is reportedly now leading its Twitter Blue subscription service update, was briefed on the document ahead of last week’s rollout the paid verification option, as was Musk and his lawyer Alex Spiro, a source told CNN. The digital news outlet Platformer was the first to report details of the document.

    Within hours of the paid verification system launching last week, Twitter was hit with a wave of celebrity and corporate impersonators on its platform who quickly gamed the system, potentially adding to growing uncertainty among advertisers, who make up nearly all of Twitter’s business. The paid subscription service was suspended on Friday with little warning. It was not immediately clear when the company might restore the offering.

    Even with the apparent firings for employees who speak out, some continued to do so publicly. After Musk posted a graph purporting to show a slight uptick in Twitter’s daily active users, a data scientist at the company replied that the chart was flawed. In response to a user asking if the employee was “safe,” the staffer replied: “He’ll never catch me.”

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  • New York Times: Amazon plans to lay off thousands of employees | CNN Business

    New York Times: Amazon plans to lay off thousands of employees | CNN Business

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    CNN Business
     — 

    Amazon is planning to lay off some 10,000 employees in corporate and technology jobs, the New York Times reported on Monday, citing anonymous sources with knowledge of the matter.

    The job cuts could start as early as this week, and will likely include staff working on Amazon

    (AMZN)     devices (such as its voice-assistant Alexa), as well as people in its retail and human resources divisions, according to the report. “The total number of layoffs remains fluid,” the report stated.

    Amazon did not immediately respond to CNN Business’ request for comment Monday. CNN has not been able to independently confirm the report. The Wall Street Journal also reported Monday that Amazon is set to lay off thousands of workers, citing a person familiar with the matter.

    The news would make Amazon the latest in a spate of tech companies that have announced significant layoffs in recent weeks, amid broader economic uncertainty and a sharp slowdown in the demand many tech giants saw during the pandemic that led them to quickly add staff. Last week, Facebook-parent Meta announced it is laying off 11,000 employees.

    Earlier this month, Amazon said it was freezing corporate hiring “for the next few months,” citing economic uncertainty and “how many people we have hired” in recent years. Amazon rapidly grew its headcount as the pandemic shifted consumer habits and spending towards e-commerce. In its most-recent earnings report, however, Amazon forecast its revenue for the holiday quarter would be lighter than analysts had expected.

    Shares in Amazon have fallen more than 40% in 2022 so far amid a broader market decline.

    News of potential layoffs comes at a crucial time for the retail industry, ahead of the holiday shopping season. Despite recession fears and inflationary pressures, the National Retail Federation is predicting a 6% to 8% sales increase from last year during the holiday shopping months.

    Last month, Amazon founder Jeff Bezos tweeted about the possibility of a looming recession, writing, “the probabilities in this economy tell you to batten down the hatches.” In an interview with CNN’s Chloe Melas on Saturday, Bezos said that advice was meant for business owners and consumers alike. “Take some risk off the table,” he said. “Just a little bit of risk reduction could make the difference.”

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