Layoff Tracker Suggests Over 414,000 People Have Been Impacted By Job Cuts In The Tech Industry

The concept was reportedly popularized by Jewel Ham, who previously served as an intern in 2019, as AFROTECH has mentioned. While the marketing and exposure is certainly beneficial to Spotify as many users are screenshotting and sharing their results on platforms, Spotify also gained buzz for wrapping Q4 2023 with a wave of layoffs.

According to Business Insider, Spotify recently slashed 1,500 jobs, which amounts to 17% of its workforce. The announcement is despite the company having “robust growth” in 2023, per CNN.

This marks the third layoff from the company this year. CNN also reports that Spotify previously slashed more than 500 jobs at the top of the year and 200 jobs in June 2023.

“We still have a ways to go before we are both productive and efficient… we have to become relentlessly resourceful,” CEO Daniel Ek said in a statement, per the outlet. “This is not a step back; it’s a strategic reorientation… A reduction of this size will make it necessary to change the way we work, and we will share much more about what this will mean in the days and weeks ahead.”

Benjamin Black, an analyst at Deutsche Bank, explained to The New York Times that the company is showing its efforts to reach target profit goals. “In investors’ minds, this represents a turning point in terms of how serious the company is. This shows you that they are very, very serious.”

The tech industry as a whole has taken a massive hit with an estimated 1,929 layoffs at companies in the sector and 414,463 people impacted, according to TrueUp’s layoff tracker.

Most recently listed tech companies for the month of December include OpenView (70 layoffs, 100% of company); Course Hero (56 layoffs, 25% of company); Block (Square) (40 layoffs at Tidal, 10% of company); and Yahoo.

Jack Dorsey, CEO of Block, recently addressed the layoffs in a note sent to staff citing “constraints” on the “company’s growth.”

“It’s been over a month since I sent this email to announce some of the constraints we’re putting on our company’s growth,” Dorsey wrote in a note to staff, according to Business Insider. “Since then, we’ve been doing a lot of work, and taking some actions. The most notable and hardest actions will be when we have to part ways with teammates. TIDAL just announced one such action this week.”

He also added, “During this time I want us to increase our information flow throughout the company, to bring us all into a shared understanding of why we made a particular move. Most importantly and whenever possible: the business rationale, what else was considered, and how this sets us up better for the future.”

Other companies listed with layoffs for 2023 include Amazon, Sierra Space, Codeup, and McMakler. AFROTECH has also cited media giants that have cleaned house including Vice Media, Clubhouse, and Paper Magazine.

“That’s an industry that’s really struggling against the internet content that’s increasingly available for free,” explained Julia Pollak, chief economist at ZipRecruiter, per USA Today. “Newspapers are going out of business all the time, so that trend is not likely to slow down.”

According to Rachel Sederberg, a senior economist at the labor markets analytics firm Lightcast, the layoffs are anticipated as numerous companies assess their positions approaching the end of their fiscal year.

“A lot of firms are reaching their fiscal year-end,” Sederberg told USA Today. “They’re taking a hard look at what’s going on their balance sheets as well as how the business is performing, and they make decisions along those lines. And sometimes that has implications for workers.”

There is still a light at the end of the tunnel. Senior vice president of Challenger, Gray & Christmas, Andy Challenger, suggests it will be crucial for individuals who are laid off to rely not solely on company portals to send their resume, but to think ahead and lean into their network.

“When a post gets put online and there’s 1,000 resumes for it in five minutes, it’s really hard to stand out,” Challenger told USA Today. “But if you can meet somebody at a company you want to work for and ask for a referral, you get put to the top of that pile. That’s a great way to give yourself more opportunities.”

In addition to this insight, job seekers should still strive to make sure their resumes meet high standards. Incorporate your most significant achievements from your previous employer into your resume, and don’t overlook transferable skills that enhance your suitability for other roles.

AFROTECH also invites you to leverage its resume book, providing an opportunity to network and engage with leading companies across diverse industries. Simply upload your resume to get started.