Lately not a week goes by without one or more technology companies announcing several hundred or thousands of layoffs. To date, many of the industry’s top heavyweights have already done so, including Meta, Alphabet, Salesforce, Microsoft, IBM, and SAP. And now it’s their turn to PayPal and NetAppthat have confirmed that they will lay off, respectively, 2,000 and 960 employees.
Layoffs at PayPal account for 7% of its workforce, and according to the Company CEO Dan SchulmanThe layoffs will take place over the next few weeks. They will not affect all departments equally, although for now it is unknown which will bear the most staff cuts.
According to Schulman, they will treat those who lose their employment “with the utmost respect and empathy, giving them generous compensation, getting involved in consulting where necessary and supporting them in their transitions«. The manager also thanked them for the important contributions they have made to PayPal. On the other hand, he has blamed the layoffs on the “complicated macroeconomic environment” in which the company finds itself.
Schulman has further stressed that they have had no choice but to cut staff, because they have made notable progress in adjusting their «cost structure, and focused resources on strategic priorities“, they still have “work to do” about.
As for the layoffs at NetAppwill occur over the next three months, and will reach 8% of your workforce. The company confirmed this workforce reduction by sending the relevant documentation to the Securities and Exchange Commission (SEC).
The NetApp CEO George Kurian has assured employees in an email that the layoffs are due to NetApp having to cut costs due to worsening economic conditions, which has led to technology spending.”more conservative«. More or less the reasons that other CEOs have given to justify the reduction in staff, Kurian has stressed that they are not «immune to these problems“, and that “against this background“, must be”agile, meet short-term commitments, and prepare for long-term success«.
When the company presented its results for the second quarter of 2022, at the end of last October, it already warned that the economic situation was experiencing a slowdown, and that they saw more reluctance in companies when approving budgets, and more completeness in terms of approval levels. They also began to face longer sales cycles, and deals deferred to other quarters. So, Kurian already pointed out that they had decided to freeze hiring and reduce spending. The situation, in view of the layoffs, has not improved.
