Health and Fitness

Meta, Twitter, Lyft, Netflix: We’re tracking mass layoffs at companies across the San Francisco Bay Area

SAN FRANCISCO (KGO) — From Salesforce to Twitter to Meta, tens of thousands of U.S. tech workers have lost their jobs in brutal mass layoffs in 2022.

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Note: This tracker is developing and will be updated

For a growing number of companies, we are starting to see not just mass job cuts but second and third rounds of cuts are being made. These include Stripe, which cut around 1,000 in November after laying off around 50 people (from TaxJar, a Stripe acquisition) earlier this year.

Lyft slashed 700 from its team after laying off 60 people in July.

Gopuff, a food delivery service company, laid off 2,200 people in a series of three layoffs this year, the most recent being around 250 employees.

Earlier this year, Netflix cut 150 staff members from its workforce in May and again, shedding 450 more in June.

Here’s a more in-depth look at the five largest layoffs in the Bay Area this year.

Meta

Staff cut: 11,000

Reason: Cost-cutting

Meta announced it is laying off 13% of its staff, or more than 11,000 employees, through a staff letter CEO Mark Zuckerberg wrote on Nov. 3.

The company saw overall sales fall 4% to $27.71 billion in the latest quarter. Operating income drop 46% from the previous year. This while costs and expenses rose 19% to $22.1 billion.

In his note, Zuckerberg says impacted employees will receive 16 weeks of pay plus two additional weeks for every year of service. Meta will cover the health insurance of staff receiving redundancy for six months.

Twitter

Staff cut: 3, 700

Reason: New owner

After the deal to take over Twitter for $44 billion closed, the social media company’s new owner, Elon Musk, fired Twitter’s CEO along with several top executives. He had previously indicated that he would cut 75% of it’s pre-takeover workforce. He had since walked those comments back but the company has announced laying off half its workforce with cuts smaller in the team responsible for preventing the spread of misinformation.

According to tweets by Musk, everyone affected was offered three months of severance pay, “Unfortunately there is no choice when the company is losing over $4M/day,”

Snap Inc

Staff cut: 1,280

Reason: Poor revenue growth/company restructure

Snap Inc. CEO Evan Spiegel sent a note to employees on August 31 detailing the difficult decision to cut staff by 20%. In regulatory filings, it anticipates this and product pull backs will help save $500 million.

In his note he said, “our current year-over-year QTD revenue growth of 8% is well below what we were expecting earlier this year.”

The company decided to discontinue investments in departments such as Snap Originals, Minis, Games, and Pixy, among other areas. They also started winding down the standalone applications Zenly and Voisey.

U.S. staff that were impacted received severance packages that include at least four months of pay, accelerated equity vesting, health care coverage through January and access to mental health benefits.

Stripe

Staff cut: 1,000 or 14%

Reason: Macroeconomic challenges

In his note to staff announcing the layoffs, Stripe CEO Patrick Collison said the company will cut staffing numbers by around 14%.

Collison cited macroeconomic headwinds such as stubborn inflation, energy shocks, higher interest rates, reduced investment budgets, and sparser startup funding as the challenges that face the business.

“Around 14% of people at Stripe will be leaving the company. We, the founders, made this decision. We overhired for the world we’re in (more on that below), and it pains us to be unable to deliver the experience that we hoped that those impacted would have at Stripe,” he said.

The company will pay 14 weeks of severance for all departing employees, and more for those with longer tenure. Those departing will be paid until at least February 21st 2023.

All departing staff will still received their 2022 annual bonus regardless of their departure date. (It will be prorated for people hired in 2022.)

The company has also promised to pay the cash equivalent of 6 months of existing healthcare premiums or healthcare continuation.

Robinhood

Staff cut: 1000

Reason: Cost cutting/Macroeconomic challenges

Menlo Park-based online discount brokerage company Robinhood has cut an estimated 1,000 workers over two layoffs, the first round of cuts in April 2022 where the company cut 9% of its nearly 3,900 workforce. The latest announced through a letter from CEO Vlad Tenev on Aug 2 that 23% of its total staff will be cut.

Tenev said in his blog post that earlier this year, it was announced that the company would let go “of 9% of our workforce and focusing on greater cost discipline throughout the organization. This did not go far enough.”.

“Since that time, we have seen additional deterioration of the macro environment, with inflation at 40-year highs accompanied by a broad crypto market crash. This has further reduced customer trading activity and assets under custody,” he said.

Departing workers will be offered the opportunity to remain employed with Robinhood through October 1, 2022 and receive their regular pay and benefits (including equity vesting). They will also be offered cash severance, payment of COBRA medical, dental and vision insurance premiums and job search assistance (including an opt in Robinhood Alumni Talent Directory).

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