Waves Of Tech Layoffs Which Tech Companies Are Cutting Their Workforce And Why?

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Thousands of workers in the tech sector suddenly find themselves without a job. The industry continues to cite changing economic conditions as the reason. But each company has slightly different reasons for the layoffs. Plus, many companies are seeing an uneven distribution of layoffs across departments.

Which companies are laying off workers?

According to layoffs.fyi, over 760 tech companies have laid off employees in 2022. Some are letting go a handful of employees. Others, like Meta and Twitter TWTR 0.0%, are laying off thousands of workers.

Let’s take a closer look at which companies are laying off workers and the reasons behind the decision.


Since Elon Musk’s deal to purchase the company finally came through, Twitter has been making all kinds of waves in the media. After the deal closed, Musk quickly fired the top brass of the company.

But the layoffs didn’t stop with the former c-suite. Thousands more Twitter employees found out they were let go last week. The estimated cuts accounted for 50% of the company’s workforce, which means around 3,700 employees were laid off.

Musk tweeted that the layoffs were necessary because the company was losing at least $4 million per day. Although everyone was reportedly offered three months of severance pay, the widespread layoffs across the company were done in a confusing way.

Many former employees reportedly found out about their termination when they were locked out of their work email and Slack accounts. Some are reporting that Twitter may want to rehire some of the laid-off employees.


Lyft recently announced that it would be laying off around 700 employees, which accounts for approximately 13% of its workforce.

In a memo to the company’s employees, Lyft’s leadership stated, “There are several challenges playing out across the economy. We’re facing a probable recession sometime in the next year and ride share insurance costs are going up.

We worked hard to bring down costs this summer: we slowed, then froze hiring; cut spending; and paused less-critical initiatives. Still, Lyft has to become leaner, which requires us to part with incredible team members.”

Based on the memo, it seems that the layoffs will be spread across all, or at least multiple, departments.


Stripe, a payments company, announced plans to cut its workforce by 14% this week. The layoffs will impact more than 1,000 employees at the company.

Stripe’s CEO, Patrick Collison, said in the announcement that the layoffs were necessary due to leadership mistakes. Specifically, Collision said leadership was “much too optimistic about the internet economy’s near-term growth in 2022 and 2023 and underestimated both the likelihood and impact of a broader slowdown.”

He continued that, “We grew operating costs too quickly. Buoyed by the success we’re seeing in some of our new product areas, we allowed coordination costs to grow and operational inefficiencies to seep in.”

In contrast to some of the other companies facing a layoff, former employees of Stripe found clear information about how the change will impact their income. For example, affected Stripe employees can find the details of severance pay, healthcare, vesting and more easily available online.

But former employees of other companies are left with vague information about their employment situation. Most notably, some Twitter employees reportedly found out about being let go when they lost access to their company Slack channel and email account.


Chime, a fintech company, announced that it would be laying off around 160 workers, or 12% of its workforce. Although the company remains reportedly well capitalized, it seems that the cuts are being made in preparation for changing market dynamics.


In June, Netflix let go of some 300 employees. That’s after letting go of around 150 employees in May. The decision to make a series of layoffs comes after the company saw its U.S. subscribers plummet by 200,000.


For those that follow the crypto markets, it might not come as a surprise that Coinbase is moving forward with layoffs in the face of depressed crypto prices. Due to the changing economic conditions, CEO Brian Armstrong, announced that the company would lay off 18% of the workforce.

In a memo, Armstrong pointed to several reasons for the changes to the workforce. Specifically, he said, “We appear to be entering a recession after a 10+ year economic boom. A recession could lead to another crypto winter and could last for an extended period.

In past crypto winters, trading revenue (our largest revenue source) has declined significantly. While it’s hard to predict the economy or the markets, we always plan for the worst so we can operate the business through any environment.” He also mentioned growing too quickly and down markets as a reason for cutting workers.


With the housing market slowdown, Zillow announced layoffs of approximately 5% of its workforce, or 300 employees.

One of the major areas impacted is the company’s relatively new house flipping department. However, the company is still reportedly hiring in technology-related roles.


Meta, the parent company of Facebook, is reportedly planning a large number of layoffs later this week. Although the number of employees to be laid off is uncertain, the company’s CEO Mark Zuckerberg recently said in a conference call that he expects Meta to end 2023 “as either roughly the same size, or even a slightly smaller organization than we are today.”

As of November 10th, 13% of the workforce was laid off. With that, over 11,000 Meta employees now find themselves without a job.

The bottom line

With these tech layoffs coming in waves, investors must vigilantly protect their portfolios. As more companies announce layoffs, the stock of those companies respond to the changes. With so many companies announcing layoffs, it can be difficult for investors to stay on top of it all.

Luckily, you don’t have to keep track on your own. Instead, you can harness the power of artificial intelligence with the help of an investment kit through Q.ai.

With the Tech Rally Investment Kit, you can delegate the hassle of tracking your tech investments to a kit that auto-adjusts to your portfolio based on the market conditions and your personalized investment goals and risk tolerance.

Download Q.ai today for access to AI-powered investment strategies.

Q.ai helps you invest like the pros with advanced investment strategies that combine human ingenuity with AI technology.

Source: Waves Of Tech Layoffs — Which Tech Companies Are Cutting Their Workforce And Why?


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If Chime Isn’t A Bank, Then What Is It?

TechCrunch Disrupt San Francisco 2019 - Day 3

Challenger bank Chime—oh wait, I can’t call the fintech a “bank.” Let me start over. Chime, a provider of products and services that look, feel, and probably even smell like banking products—but regulatorily-speaking, aren’t banking products—got some unwanted attention recently when American Banker reported:

“Chime is nearing a deadline to stop implying that it operates as a bank, according to a settlement agreement with California regulators. Chime must revise language to state that customers can open a checking account ‘through’ the company rather than ‘opening a Chime bank account.’ Chime is also required to state in its paid ads that banking services are provided by partners [and] must name those partners.”

What’s next? Require Apple to publicly disclose that some of the components in its iPhone were designed and manufactured by partners lest it mislead the public into thinking that Apple is an “innovative” company?

Or better yet…

How about requiring Apple to stop implying that there’s no bank involved with its Apple Card credit card when Goldman Sachs—a bank—is issuing the card?

In the wildest delusions of the (regulatorily-legitimate) banking community, as a result of Chime’s agreement with regulators, the challenger not-a-bank will: 1) see its rate of customer acquisition slow to zero, and 2) experience huge attrition among its base of 12 million customers.

Of course, none of that is going to happen. Chime’s customers couldn’t care less about any of this.

Chime’s accounts are—and will continue to be—FDIC-insured. Chime’s mobile app uptime is as good as any “real” bank. Chime answers the phone when customers call (or so I would assume). And the money that consumers have in their Chime accounts when they go to bed at night is there when they get up in the morning.

That’s what consumers care about.

This situation begs three questions.

Question #1: Why Do We Have Bank Regulations?

The answer is simple—and it’s not “to create a level playing field.” It’s “to protect someone.”

Regulators often refer to consumers as the protected party, but in the current case, consumers aren’t the protected party—banks are.

That might strike you as misguided and wrong. It’s not. Banks are required to meet certain regulatory requirements for a variety of things, and as a result, deserve regulatory protection for certain things.

The interpretation of the regulations is where the picture gets fuzzy. Pymnts.com quoted Rep. Maxine Waters of California, the Democratic chairwoman of the House Financial Services Committee, as saying:

“New entities, including big tech firms, are receiving unconventional bank charters and offering bank products and services while evading regulations most banks, including community banks, must comply with.”

Nonsense: 1) There’s no such thing as an “unconventional” bank charter; 2) No Big Tech firm has received a bank charter—unconventional or otherwise; and 3) New entities are not evading regulations since they rely on banks who comply with them.

Pymnts.com went on to quote Rep. Patrick McHenry of North Carolina, the ranking Republican on the financial services panel, who said:

“The private sector is innovating to meet the wants and needs of all consumers. We should be encouraging our regulators to seek regulatory requirements that fit these advancements, not hinder them. Banking must evolve with current times.”

Makes you wonder who the “progressive” here is.

Question #2: If Chime Isn’t a Bank, Then What is It?

Here’s Chime CEO Chris Britt’s answer:

“We’re more like a consumer software company than a bank. It’s more a transaction-based, processing-based business model that is highly predictable, highly recurring, and highly profitable.”

Huh? Software companies move fast and break things, release buggy products, and provide mediocre customer service. In addition, Britt’s description of the business model seems to rely heavily on interchange as a revenue source. Chime has to share that with its bank partner, however—which dilutes Chime’s profits.

[Note to Chime’s PR agency: Can you help Chris craft a better description than the one above?]

I asked a few folks in the banking industry what they thought Chime is. According to Chris Nichols, Director of Capital Markets at SouthState Bank:

“It’s a UI layer. A fintech company that specializes in just one aspect of banking for one segment. It’s analogous to aftermarket car customization companies like WCC and Galpin. They sell Fords but they don’t look like Fords or perform like them.”

Bankers’ arguments against Chime often focus on “safety and soundness.” If Chime is simply a UI, how is it negatively harming the underlying product’s safety and soundness? (That’s not meant to be a rhetorical).

Brett King, author of the book Bank 4.0, and founder and Executive Chairman of fintech company Moven isn’t buying Nichol’s description:

“Chime is a bank. Regulation is behind the 8-ball on this. What defines a bank is not a regulatory categorization, but how people use it. What a bank does for people—and how it does it—is evolving. Regulation needs to likewise do so.”

Jason Mikulaja, author of the Fintech Business Weekly newsletter agrees:

“Rather than focusing on enforcing the distinction between ‘bank’ and not a bank, which, while legally important, may be lost on the average consumer, regulators should focus on updating licensing categories and processes to reflect the evolving consumer financial services landscape.”

According to Dara Tarkowski, Managing Partner at Actuate Law:

“Labels matter. Regulators care about what you call yourself, your products and your services. If you use a label—even casually—that a regulator thinks will deceive or mislead a consumer, you are venturing into the land of UDAAP and consent decrees. So if you don’t hold a charter, don’t call yourself a bank. What is the impact on consumers? Probably not all that much. But that’s not the point.”

There’s little impact on consumers because consumers aren’t the intended protected party here—banks are. And it’s hard to see how current regulations are protecting either party by prohibiting Chime from calling itself a bank.

Question #3: How Should Banks Respond?

Chime has 12 million customers. Is it because they’ve flaunted regulations and taken unfair advantage of incumbent institutions?

No. It’s because its products and services meet the needs of its low- to middle-income base of customers—consumers that many banks either overlook or under-prioritize.

And Chime partners with a bank who reaps part of the revenue that Chime generates. Any bank with a charter could have competed for that business—but few did.

Fighting this battle on the regulatory front won’t win the war for banks. To win, they need to innovate and compete.

Ron Shevlin is the Managing Director of Fintech Research at Cornerstone Advisors, where he publishes commissioned research reports on fintech trends and advises both established and startup financial technology companies. Author of the Fintech Snark Tank on Forbes, Ron is ranked among the top fintech influencers globally, and is a frequent keynote speaker at banking and fintech industry events. Want to talk more fintech? Connect on Twitter or LinkedIn.

Source: If Chime Isn’t A Bank, Then What Is It?


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