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Founders who got it wrong: Major layoffs at tech companies
In recent weeks, Amazon has become the first publicly traded company in the world to lose 1 trillion dollars in market capitalisation. The tech giant's shares fell 4.3% on November 9, with its valuation falling to nearly 879 billion dollars after closing the day with a record market capitalisation of 1.88 trillion dollars in July 2021. About 1 week later, the company's CEO Andy Jessy said in an e-mail to employees that ‘the annual evaluation process is more difficult than ever due to the difficulties in the economy’ and that the layoffs, which will affect 10,000 people, will continue in early 2023.
Amazon wasn't the only company in the tech sector where alarms went off, as rising inflation, rising recession concerns, tight monetary policies, and below-expected financial results led to a decline in tech stocks. Companies that planned to cut spending to prepare for tough times started to downsize their workforce. According to information in Layoffs.fyi, which tracks the layoffs, 145 tech companies announced their layoffs in November, while the number of tech workers who lost their jobs reached 45,265.