Business
Visualizing Tech Company Layoffs in 2022
Visualizing Tech Company Layoffs in 2022
Layoffs are happening so frequently in 2022 that everyone from Crunchbase to Indian tech website Inc42 are now keeping track.
There is even a standalone website tracking all tech layoffs in the United States.
For the purposes of this infographic, we’ve used data from trueup.io which includes a mix of U.S. and international tech companies that have let workers go in 2022.
A Thousand Cuts: Mass Layoffs by Tech Companies
Layoffs are having an impact on the entire tech industry, and the phenomenon is global. Here are some of the most high-profile examples of mass layoffs in 2022:
Meta: The social media giant faces competition from upstarts like TikTok, as well as a pool of ad dollars that is shrinking in the face of a faltering economy. Although this reduction in headcount is painful for Meta, it’s worth considering a more broad perspective. In close to two decades of doing business, these will be the company’s first wide-scale job cuts.
Twitter: Though Meta wins with sheer volume of cuts, Twitter’s mass layoffs are surely the most dramatic. In early November, the company’s iconoclastic new owner, Elon Musk, slashed 50% of the workforce, and soon after, thousands of contractors also suddenly lost their jobs. Estimating how many employees remain at the company will remain a challenge until the dust settles.
Byju’s: Layoffs are not just confined to the United States. India’s sizable tech sector is also facing cuts. EdTech giant, Byju’s, laid off 2,500 employees in October—around 5% of its total workforce.
Peloton: The high-end workout equipment company has been dropping its headcount throughout the year. In the visualization above, companies like Meta stand out as they eliminated thousands of employees all at once. Peloton, however, executed its layoffs in stages throughout the year. After strong growth during the pandemic began to stagnate, the company is slimming down to regain profitability.
Why are Tech Companies Laying Off so Many People?
The stated reasons for letting so many workers go are economic uncertainty (external factors) and poor performance (internal factors).
Goldman Sachs Research points out that “higher interest rates and tighter financial conditions disproportionately impact the sector because tech company profits are typically expected further out in the future and therefore subject to greater duration risk.”
Shrinking advertising budgets and the implosion of the cryptocurrency market are also factors that may have influenced the decision to cut headcounts. Twitter and Snapchat fall into the former bucket, while Coinbase and Kraken fall into the latter.
What Do These Job Cuts Mean for the Economy?
At face value, widespread layoffs in the tech sector might appear to be a bad omen for the wider economy—especially given the outsize influence tech companies have on the markets.
Thankfully, this does not appear to be the case. Payroll and wage data from the U.S. government have exceeded expectations, and the country’s unemployment rate is close to a half-century low.
So, why the disconnect?
First off, tech jobs only account for less than 3% of total employment in America. As well, tech workers who’ve lost their jobs have a high likelihood of securing a new job in short order.
It remains to be seen whether November will be the peak of job cuts. Employers generally try to avoid letting people go right before the holiday season. One week into December, Trueup.io has tracked 7,600 more layoffs.
Retail
Visualized: 10 Black Friday Retail Trends
Consumers are expecting more this Black Friday, but for retailers, the pressure is mounting. Here are 10 trends that may impact them in 2023.
10 Black Friday Retail Trends
This year, retailers are under major pressure to orchestrate even more substantial and enticing Black Friday discounts for their customers.
We partnered up with Airwallex to visualize the latest available data from 2022 to understand what this year’s holiday weekend could look like for retailers.
Consumer Loyalty and Price
Theme: Buyer Behaviour
In a 2022 U.S. study conducted by Emarsys, 58% of people claim they are more loyal to retailers that offer them discounts, incentives, and rewards, indicating that price plays a crucial role in fostering loyalty.
Moreover, 60% of respondents admitted to turning their back on the brands they were previously loyal to in an effort to save money amid inflation hikes.
Convenience is King
Theme: Buyer Behaviour
Salesforce notes that 2022 saw a global increase of 9% in Buy Online, Pick Up In Store (BOPIS) adoption during Cyber Week compared to early November data.
Specifically in the U.S., retailers offering BOPIS experienced 38% higher growth in online revenue during Cyber Week compared to those without this service.
Global Spending is Up
Theme: Spending Patterns
Globally, 2022 Cyber Week spending increased 2% YoY to $281 billion. This is despite some regions experiencing a decline and some retailers reporting lighter foot traffic.
Margins at Risk
Theme: Spending Patterns
While consumers are spending more, retailers are still seeing their margins squeezed due to a variety of factors such as high inflation, high cost of goods, strained systems, and increased demand for discounts.
That is why we are starting to see certain retailers choosing to “boycott” Black Friday, and although estimates vary, The Guardian reported that as many as 85% of smaller retailers were not participating in Black Friday in 2021.
The Smartphone Surge
Theme: Buyer Behaviour
According to Adobe, 47% of U.S. online sales came from smartphones during the 2022 holiday spending season—up from 43% in 2021.
This reflects a broader trend within the retail sector, aligning with projections for substantial growth in the global mobile commerce market.
Deeper Discounts
Theme: Spending Patterns
In another benefit to consumers, discounts are getting deeper. Throughout the 2022 holiday season, the average discount stood at 21% compared to 19% in 2021 with apparel, skincare, and beauty touting the deepest discounts.
Alternative Payment Options
Theme: Payments
When it comes to payment methods, alternatives such as Buy Now Pay Later (BNPL) are gaining traction, as evidenced by a 5% increase in orders YoY.
Financing Lower-Priced Goods
Theme: Payments
Despite the success of Buy Now Pay Later, the average order value decreased 5% YoY, meaning consumers are using the payment method more, but to help finance lower-priced goods.
Sales Spikes in APAC + Europe
Theme: Payments
Even though Black Friday has been traditionally viewed as an American retail phenomenon, it has transcended its U.S. origins and has been embraced by consumers the world over.
Several countries witness significant spikes in online sales in 2022, most notably in Australia with a +239% sales spike, and Spain at +576% spike when compared to average October sales.
Retailers Hit with Hidden Fees
Theme: Payments
Did you know that merchants of all shapes and sizes can often find it hard to escape paying unnecessary transaction fees during the holiday season?
For context, every international dollar a retailer generates during the holiday period could be converted up to three times, costing them up to 5.5% of every transaction.
Considering the multitude of benefits afforded to consumers during Black Friday and the holiday season, the question that looms is: is this retail bonanza genuinely worthwhile for retailers?
By partnering with Airwallex, retailers can simplify global payments, but also capitalise on increased consumer spending—without sacrificing on profit.
Learn more about Airwallex now.
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