Google has laid off 12,000 people, Microsoft 10,000, and Amazon 18,000. Now, Spotify is joining the mayhem as it lays off nearly 600 employees.
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00:00More than 50,000 employees have been affected by sweeping tech layoffs recently,
00:04and now Spotify is joining in on the job cuts.
00:07So why is the tech industry laying off so many workers?
00:09Brooke can explain in less than 60 seconds.
00:11Spotify CEOs sent a note to employees on Monday morning announcing the job cuts,
00:15which is estimated to affect 6% of its workforce or 600 people.
00:20Other tech companies have done similar large-scale layoffs recently.
00:22Google announced plans to lay off 12,000 people last week.
00:26Microsoft will make 10,000 job cuts,
00:28while Amazon will shrink its workforce by 18,000 people.
00:31Many CEOs have cited unsustainable growth projections made during the pandemic,
00:35when many tech companies went on massive hiring sprees
00:38to keep up with demand that has since decreased.
00:40Some are also blaming the uncertainty of the economy's future.
00:43But experts have warned these layoffs don't necessarily mean a recession is looming.
00:46So far, the mass layoffs have been largely contained in the tech and tech-adjacent industries,
00:51and major tech roles account for just 0.3% of the overall job market.
00:55On top of that, the country's unemployment rate fell to a 50-year low of 3.5% last month.