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Study: About 473,000 layoffs at 800 companies worldwide
Experts expect a new wave of layoffs at tech companies and other firms, after continued negative news about the US banking sector, particularly with the backsliding of Silicon Valley Bank, the “spiritual father of startups.”
According to a study by Bloomberg, about 473,000 employees at 800 companies around the world have been laid off since October 1st, which is 10% of the total workforce.
The tech sector saw the biggest job losses, accounting for a third of all cuts.
The mass layoffs stunned many Silicon Valley workers who enjoyed generous wages and easy benefits.
Corporate leaders justified the layoffs as demand for tech services fell after the end of the coronavirus, and funding for emerging tech companies dried up between 2021 and 2022, as the total value of venture capital deals fell to 38. % globally, due to a significant decline in investments by both the world’s two largest investment funds, Tiger Global Management and SoftBank Vision Fund.
And “Amazon” alone announced about 30,000 job cuts, with a new round of layoffs last Monday, followed by “Meta” with 21,000 job cuts.
The technology sector is followed by layoffs in the non-essential goods sector such as durable goods, luxury apparel, entertainment and automobiles. The sector has shed more than 108,000 jobs as demand slumps and sales plummet.
About 50,000 jobs have been cut in the last six months in the financial services sector.
The merger of UBS and Credit Suisse could increase the level of job losses, the conglomerate has 120,000 employees, and a third of them, or 40,000 workers, are likely to be laid off due to the merger.
According to the study of 800 international companies, the health care sector is not immune to job losses, driven by massive cutbacks at startups and health-related platforms, but it still accounts for only 6% of all layoffs.
Energy companies were the least affected, with less than 4,000 job cuts. Oil companies such as ExxonMobil and Chevron posted record profits and announced huge share buybacks as Russia’s Ukraine war pushed up energy prices.
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