Tech companies were responsible for the highest number of redundancies in September
According to GlobalData, around 90 companies announced layoffs in September 2022, which is a considerable increase from the previous month. The data and analytics company’s News Database notes that this reduction in labor is a result of negatively impacted business sentiment amid cost cutting, high operating expenses, and the current economic crisis.
According to GlobalData’s Job Analytics Database, the number of jobs available for application (‘active jobs’) continued to fall in September 2022, as the pace of job closures and removals from career pages (the ‘jobs closure rate’) was higher than the rate of new job postings. The research also indicates that many companies are planning to restructure or realign their businesses, which could result in employees being laid off. In September 2022, companies that laid off employees as part of a restructuring strategy included Netflix, Meta, Wipro, HCL, Twilio, Credit Suisse, and Snap.
Furthermore, according to GlobalData’s latest report, ‘Global Hiring Activity – Trends & Signals Q3 2022’, over 300 companies announced layoffs during the quarter ending September 22.
Sherla Sriprada, Business Fundamentals Analyst at GlobalData, commented: “Of particular interest is Meta, which announced both a hiring freeze and team restructuring to reduce expenses and realign objectives. The company’s job postings fell by 23% in September 2022 over January 2022.”
Rachel Foster Jones, Thematic Analyst at GlobalData, said: “Meta’s headcount shows no sign of increasing this year. The company, like much of Big Tech, is trying to cut costs as it grapples with a weak advertising environment and a tough macroeconomic climate. This is the tip of the iceberg for Meta. Meta is also facing fierce competition with Tiktok, regulatory hurdles and an incredibly costly and currently unprofitable metaverse ambition. Meta cannot afford to cut its hiring freeze short.”
GlobalData’s research indicates that technology companies were responsible for the highest number of layoffs in September. For example, tech company Twilio, as part of its restructuring strategy, laid off 11% of its workforce. The company’s job postings also fell by 72% during the same period.
The banking & payments industry was another key sector affected by layoffs.
Sriprada continues: “Credit Suisse laid off 5,000 employees as part of a restructuring plan, with the company’s job postings falling by 32% in September 2022 over January 2022. Meanwhile, the Goldman Sachs Group laid off 25 investment bankers in Asia. However, job postings rose in India (22%), Singapore (16%), and Hong Kong (8%) in September 2022 over January 2022.”
In the retail industry, Rent the Runway is planning to restructure, which will involve streamlining its organizational structure and increasing operating efficiencies. The company also witnessed a drop of 74% in job postings in September 2022. Other companies experiencing the strain include The Gap, PVH, and Wayfair.