Match Group Inc, the company behind popular dating platforms such as Tinder, Hinge, and OkCupid, announced on Wednesday that it would be laying off around 8 per cent of its employees.
This decision comes a day after the company forecasted lower-than-expected first-quarter revenue. The job cuts have already begun in the US and are ongoing in other countries, as stated by CFO Gary Swidler during an earnings call.
This move by Match Group joins the trend of several big tech companies and financial giants who have been reducing their workforce in order to cut costs and prepare for a potential economic downturn.
Match Group Inc also reported its first-ever decrease in quarterly revenue, which fell below analysts’ projections. Following the pandemic surge of a few years ago, technology firms ended 2022 with a gloomy outlook.
Throughout the industry, numerous job cuts were made to rectify the excessive hiring during the Covid era and prepare for what experts predict will be a slower growth period for the sector.
According to Bloomberg News on Wednesday, Pinterest Inc. is cutting around 150 jobs, which represents less than 5 percent of its total workforce, joining a wave of technology firms downsizing staff to reduce expenses.
The company, which allows users to create online boards, informed the affected employees on Wednesday, the report stated, based on information from a knowledgeable source. The job losses affected teams throughout the San Francisco-based company, though not all teams were affected equally.
Edutech company Byju’s announced a fresh round of layoffs on Wednesday, joining this year’s layoff frenzy. CEO Byju Raveendran sent out an email promising the company’s employees during its round of layoffs in October last year that it would shift its commitment to rehiring those laid off and not carry out a layoff like that again.
According to moneycontrol, the company is letting go of members from its engineering, sales, logistics and communications teams. It is reported that 300 members from the engineering team have been relieved of their duties and the logistics team is down to almost 50 per cent of its strength since the October layoffs. Byju’s have reportedly been outsourcing its logistics team to fill in the gaps.
Instead of sending out an email to all the employees like most companies, it’s been reported that the employees were informed about the layoffs over Google Meet or Whatsapp call in the presence of the vice president, HR managers and their team directors.
American electric car manufacturer Rivian has laid off 6 per cent of its workforce as a cost cutting measure. The company saw a 90 per cent drop in stock prices on Tuesday since its initial public offering in November 2021.
Reuters reported that the company’s CEO announced the layoffs via email, stating the organisation’s intent to shift its focus to increasing manufacturing and achieving profitability this year.
Rivian had cut around six per cent of its employees in July last year, accounting for 800 workers, to ramp up the production of the newer versions of its vehicles.
HubSpot is laying off 7 per cent of its global workforce, approximately 500 employees, as part of the ongoing trend of job cuts in the tech industry.
In an email to employees, Yamini Rangan, CEO, HubSpot wrote, “After many conversations with our founders, the executive leadership team, and our board, I came to the hard decision to reduce the size of our team by 7%. Since day one, our north star has been to ‘Solve for the Customer’. That hasn’t changed; in fact, our mission is more important than ever. Our customers need us to innovate faster in this environment. We are in a unique position to help them emerge stronger from this period. That’s why we’re making this decision now. We need to set ourselves up for success today so that we can continue to solve for our customers long into the future. I am deeply sorry to be taking this step. For a company that prides itself on culture, this is a difficult decision to process.”
To support the affected employees, the company has considered several ways to support the employees in this transition period that will vary by region based on local regulations.
The affected employees will receive 5 months of severance pay, with an additional week added for each year of service at HubSpot, up to a maximum of 7 months of severance pay. For managers, the management bonus will be paid out according to the company’s standard bonus structure.
The company will also extend its medical and health benefits for up to 5 months during the severance period. Additionally, the company has also organised an Employee Assistance Program and mental health support and career coaching through Modern Health for the affected employees.
Affected employees will also be able to keep their HubSpot laptops, which will be wiped of any company data remotely, as well as any home office equipment, such as monitors and keyboards.
Lastly, the company has partnered with a third-party provider to offer coaching, resume building, guidance, an optional talent directory, and job search support. Additionally, departing employees who would like to have a live conversation with a HubSpot manager will have the opportunity to have one-on-one meetings.
NCC Group, a cybersecurity company, announced on Thursday its intention to lay off over 125 employees as part of a continuing evaluation of its strategy. The company also indicated that the market conditions in the latter half of the current fiscal year would be challenging.
The company, with a total workforce of 1,800 employees worldwide, stated that the job cuts, representing 7 per cent of its total workforce, will mainly occur in the UK and North America.
NCC indicated that the layoff process would result in a one-time expense of 4 million pounds in the latter half of the fiscal year, which ends on May 31.
The firm cited that the recognition of revenue has been impacted, specifically in the UK and North America, and it now projects single-digit revenue growth for the year.
FedEx announced on Wednesday that it will be reducing its workforce by over 10 per cent, citing the rapidly changing environment as the reason. The company stated that it will be eliminating positions among its officer and director teams and merging some of its teams and functions.
As per Invseting.com, Raj Subramaniam, President and CEO, FedEx, stated in a message to employees, “Regrettably, this was a necessary step towards becoming a more efficient and flexible organization. It is my duty to assess the business and determine how we can improve by adjusting our network to better match customer demand. Even though we have already taken several actions in this direction, it was necessary to also examine the size of our leadership team and functions that could be combined.”
FedEx is the latest company to announce job cuts, following HubSpot and Upstart, which both made similar announcements on Tuesday.
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