Wednesday, June 29, 2022

Why Companies Layoffs Their Workers in 2022?

For some time or if we say, as the world is emerging from the dreadful period of the pandemic, they are faced with the turmoil of the market due to rising inflation, to keep their business high and their products and services in the coming few years. Businesses and industries are facing challenges to maintain them smoothly in the market.

By the way, the era of Pandemic has not gone yet and no one has complete knowledge of when it will go. But with rising inflation and seeing the worst inflation figures of the past 40 years (As the United States’s consumer prices had risen in March 2022 to 8.5%), Americans can say that the times ahead may not be as they had envisioned. Which can significantly affect their everyday living style financially.

In this episode, it has been seen that for some time the companies are laying off their employees. In this post, we will give you some examples that will tell you which companies have laid off their employees in the past time, or say that they are going through a very difficult decision of firing them.

Some part of the information here is based on articles at forbes.com, New York Times, etc. 

Read More What is PayPal LoanBuilder? Requirements, Good & Bad, Etc.

Companies which has Layoffs their workers?

The very first is Fintech Unicorn Bolt (A tech company) because it is the latest example of a company that lay off its workers in 2022.

Why Companies Layoffs Their Workers in 2022?
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Fintech Unicorn Bolt layoffs 2022

The present CEO of Fintech Unicorn Bolt is Maju Kuruvilla wrote in a corporate blog post that “This is one of the hardest messages I’ve been sending since I took over as CEO of this company. My first and foremost goal has been to find and do what’s best for Bolt’s business, customers and employers. How do we use the resources we have to make it right Kuruvilla has written a long message for all the employees of Bolt companies.

You can read here the complete message by CEO Maju Kuruvilla – Message from Bolt CEO

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According to nypost.com, a third of the company is being laid off, due to which about 130 American and Canadian employees has affected, and were fired on Wednesday. It has more than 100 European workers whose jobs will be terminated in the near future.

A Spreadsheet that was circulating on Twitter on Wednesday revealed that more than 100 Bolt’s employees are looking for jobs and that spreadsheet included employees from various departments such as engineering, sales, and marketing.

Bolt’s layoffs’ Possible Reasons can be

It is no secret now how the market conditions are changing in our industry and technology sectors. we are taking measures to optimize our business against the macro challenges, CEO Maju Kuruvilla said.

My leadership team and I have taken such decisions to secure our financial position and to further increase Bolt’s runway. The funds we have raised so far should be used for more profitable purposes. Translated from Maju Kuruvilla’s message.

Robinhood layoffs 2022

In this episode, if we talk about the second number, then that is the retail brokerage firm Robinhood (trading app Robinhood). Robinhood company had said in an announcement that it will lay off more than 9% of its employees. In this episode, it laid off about 700 employees in 2019 and more than 3800+ employees in 2021.

Robinhood’s layoffs’ possible reasons can be 

Citing duplicate roles and job functions. Founder and CEO of Robinhood markets 2022, Vlad Tenev wrote in a blog post that “We determined that making these reductions to Robinhood’s staff is the right decision to improve efficiency, increase our velocity, and ensure that we are responsive to the changing needs of our customers” According to post on CNBC.

Netflix layoffs 2022

According to the report (The Wrap) Netflix layoffs a total of 25 employees from the global market team.
This layoff is due to the loss of Netflix’s subscriber base decreased to around 2,00,000 subscribers in the first quarter of 2022, a report by Netflix stated.
According to the news & media company CNN, after this report, the stocks of Netflix company dropped by 35% on 20 April 2022, and this drop cut $50 billion from Netflix’s value.

Meta Technology Company Statements 2022

Meta which is formerly known as Facebook is now planning to stop or slow the pace of adding mid-level and senior roles in the company. 

Citing a report from CNBC, this is due to the slow revenue growth of the company and also inflation concerns.