Achieving Stability and Agility at the Time of Increasing Layoffs

Update: Since publishing this article, two more major tech companies have announced mass layoffs. Hootsuite, the social media management platform, is laying off 30% of its workforce amid the downturn in the tech sector. Groupon, the digital coupon e-commerce platform, cut 15% of its staff - more than 500 employees. Groupon's CEO told TechCrunch, "overall business performance is not at the levels we anticipated."

Crunchbase News estimates that as of early August, more than 34,000 employees in the U.S. tech industry have been laid off.

By:?Chris Upham, National Director, Delivery Leadership

In recent weeks, numerous companies have announced significant job cuts and plans to freeze hiring. The anticipation of a potential recession has caused many organizations to reassess their upcoming projects and staffing needs, scale back growth plans, and lay off tens of thousands of workers.

Companies Cutting Talent

Bloomberg reports that many companies now conducting layoffs say they brought on too many new employees during the pandemic to meet the sudden flood of consumer demand, and are now facing the repercussions.

Some of the tech companies cutting jobs are major household names, such as the ones listed below.

• Coinbase, the largest US digital-asset training platform, pointed to the plunge in cryptocurrencies as the driving factor behind its move to cut roughly 18% of its workforce.
• Meta Platforms Inc., Facebook's parent company, cut back on its plans to hire engineers by at least 30%.
• Netflix, the media streaming giant, laid off 150 employees in May and 300 in June following its reported loss of nearly 300,000 cumulative subscribers in the first and second quarters.
• Shopify, the e-commerce platform, recently announced that it would be cutting 10% of its global workforce. CEO Tobi Lütke wrote in a blog post that when the pandemic began, "We bet that the channel mix - the share of dollars that travel through ecommerce rather than physical retail - would permanently leap ahead by 5 or even 10 years." Now, he admits, "I got this wrong," resulting in the decision to conduct the layoffs.
• Tesla Inc., the electric-vehicle maker, cut 200 jobs when it closed one of its facilities in June. CEO Elon Musk has expressed that around 10% of salaried employees will lose their jobs in the next quarter, citing a shaky economy as the reasoning.

Layoffs can be damaging to a company's internal culture and external brand reputation. They are also deeply emotional and stressful for those affected.

To avoid these negative repercussions, it's vital to proactively assess your organization's staffing needs. As many of the organizations cutting their talent now are doing so to brace for future economic instability, this damage may have been mitigated before the hiring process even began.

Meet Demand Through Technology

Most companies, even those enacting hiring freezes, are still trying to find ways to pursue financial growth and stability in the midst of today's uncertain economy. As the labor market slows, production and consumption demands remain steady, so businesses need to consider other ways to work and deliver.

Continue reading to learn about digital solutions, technologies, and methodologies that help businesses remain resilient and agile during times of economic uncertainty.

About the Author:

Chris Upham?is the National Director of Delivery Leadership at AIM Consulting Group. He is a technology leader with 20+ years of experience leading project teams and software development staff to deliver high-value results in support of strategic initiatives. Upham is known for his skills in restructuring organizations to exponentially improve efficiency.