Tech giants have cut tens of thousands of jobs. Automakers are ready to hire them.
Nora Naughton,Alexa St. John
Sun, January 29, 2023
Automakers like Ford and GM have yet to announce anything close to the layoffs that have left thousands of tech workers out of a job this year.
The auto industry's downsizing phase started years ago
In preparation of the massive EV transition and the introduction of other industry-changing shifts, automakers already used the time before the pandemic, and during it, to make adjustments to their workforce.
Ford, for example, cut 7,000 jobs in 2019. GM, too, slashed tens of thousands of jobs and closed factories that year in the face of an extended union strike. Both companies made these cuts as they prepared to redesign their business for an electric future.
"We've become used to seeing the automotive industry adapting and resizing for many years now," Martin French, managing director at the consultancy Berylls, told Insider. He noted that the entire automotive industry learned a lot of tough lessons from the 2009 bankruptcies of GM and Chrysler, leaving many to make defensive decisions rather than reacting to tough times when they hit.
The auto industry could benefit from tech layoffs
While tech sheds thousands of jobs, automakers are desperate for workers. Some legacy brands may take advantage of recruiting opportunities amid the layoffs, experts and executives have said.
Even within the industry, layoffs at tech-centric auto companies like Arrival, Rivian and Britishvolt, or the shuttered Argo AI, could benefit legacy car companies still looking to beef up their tech talent in newly formed electric vehicle divisions.
Companies like Ford and GM would be smart to scoop up this talent, Stephen Beck, founder and managing partner of consultancy cg42, told Insider.
"The need for talent relative to electrification, modern manufacturing, connectivity, et cetera, is very, very high," Beck said. "The war for talent in the automotive industry is still raging and the talent pool is still relatively small."
Nora Naughton,Alexa St. John
Sun, January 29, 2023
Automakers like Ford and GM have yet to announce anything close to the layoffs that have left thousands of tech workers out of a job this year.
Bill Pugliano/Getty Images
Tech companies are shedding jobs after years of growth.
But car companies are still desperate for new tech talent.
The auto industry could benefit from tech layoffs.
Tens of thousands of tech workers have been laid off in the first month of the year, but the financial woes of tech giants like Google, Amazon, Microsoft and others haven't made their way to the auto industry.
Mainstays like Ford and GM have yet to announce anything close to the sweeping layoffs that have left more than 55,000 tech workers out of a job so far this year.
Certainly, there have been some hits: Ford is planning 3,200 job cuts in Europe. Jeep-maker Stellantis stopping operations at a plant in February will result in 1,350 workers out of a job.
But the auto industry doesn't need to undergo massive cuts — mostly because they already have over the past few years.
"Legacy automakers have spent the last three years figuring out how they're going to go after electrification, autonomous driving — or increasing ADAS rather than full autonomy — and their connected car strategy," Richard Surridge, founder of recruiting firm AVANT Future Mobility, told Insider.
Tech companies, meanwhile, had enjoyed a decade of unmitigated growth thanks to low interest rates and a floor of new investor money. As these companies enter a new phase and a different economy, the tech industry is experiencing its first real belt-tightening.
"All of the tech companies are a bit bloated," Surridge said, noting that the automotive industry has the opposite problem when it comes to staffing. "Legacy auto is underpopulated in order to fully go after the future of mobility — primarily, electrification, batteries, and software."
Tech companies are shedding jobs after years of growth.
But car companies are still desperate for new tech talent.
The auto industry could benefit from tech layoffs.
Tens of thousands of tech workers have been laid off in the first month of the year, but the financial woes of tech giants like Google, Amazon, Microsoft and others haven't made their way to the auto industry.
Mainstays like Ford and GM have yet to announce anything close to the sweeping layoffs that have left more than 55,000 tech workers out of a job so far this year.
Certainly, there have been some hits: Ford is planning 3,200 job cuts in Europe. Jeep-maker Stellantis stopping operations at a plant in February will result in 1,350 workers out of a job.
But the auto industry doesn't need to undergo massive cuts — mostly because they already have over the past few years.
"Legacy automakers have spent the last three years figuring out how they're going to go after electrification, autonomous driving — or increasing ADAS rather than full autonomy — and their connected car strategy," Richard Surridge, founder of recruiting firm AVANT Future Mobility, told Insider.
Tech companies, meanwhile, had enjoyed a decade of unmitigated growth thanks to low interest rates and a floor of new investor money. As these companies enter a new phase and a different economy, the tech industry is experiencing its first real belt-tightening.
"All of the tech companies are a bit bloated," Surridge said, noting that the automotive industry has the opposite problem when it comes to staffing. "Legacy auto is underpopulated in order to fully go after the future of mobility — primarily, electrification, batteries, and software."
The auto industry's downsizing phase started years ago
In preparation of the massive EV transition and the introduction of other industry-changing shifts, automakers already used the time before the pandemic, and during it, to make adjustments to their workforce.
Ford, for example, cut 7,000 jobs in 2019. GM, too, slashed tens of thousands of jobs and closed factories that year in the face of an extended union strike. Both companies made these cuts as they prepared to redesign their business for an electric future.
"We've become used to seeing the automotive industry adapting and resizing for many years now," Martin French, managing director at the consultancy Berylls, told Insider. He noted that the entire automotive industry learned a lot of tough lessons from the 2009 bankruptcies of GM and Chrysler, leaving many to make defensive decisions rather than reacting to tough times when they hit.
The auto industry could benefit from tech layoffs
While tech sheds thousands of jobs, automakers are desperate for workers. Some legacy brands may take advantage of recruiting opportunities amid the layoffs, experts and executives have said.
Even within the industry, layoffs at tech-centric auto companies like Arrival, Rivian and Britishvolt, or the shuttered Argo AI, could benefit legacy car companies still looking to beef up their tech talent in newly formed electric vehicle divisions.
Companies like Ford and GM would be smart to scoop up this talent, Stephen Beck, founder and managing partner of consultancy cg42, told Insider.
"The need for talent relative to electrification, modern manufacturing, connectivity, et cetera, is very, very high," Beck said. "The war for talent in the automotive industry is still raging and the talent pool is still relatively small."
Samantha Delouya
Sun, January 29, 2023
The list of tech companies laying off workers keeps growing, including recent cuts from Google and Microsoft.
According to layoffs.fyi and Insider's calculations, more than 65K workers have lost jobs so far in 2023.
However, not all tech companies have announced layoffs. Check out some that have avoided mass cuts so far.
The list of companies laying off massive swaths of workers in recent months just keeps getting longer.
In recent weeks, big tech companies have announced they would lay off eye-popping numbers of workers: Google laid off 12,000, Microsoft 10,000, and Amazon 18,000.
According to the tech layoff tracker layoffs.fyi and Insider's own calculations, more than 65,000 tech workers have been cut from their jobs since January 1.
The crush of layoffs in the first few weeks of 2023 followed a brutal year for the tech industry in 2022. Both Meta and Twitter laid off significant portions of their workforces last year.
However, not all tech companies have announced a round of job cuts in the last 6 months. Here are some tech firms that have avoided recent layoff announcements:
Nvidia
Nvidia CEO Jensen Huang
Nvidia makes computer chips for video games, crypto mining, and desktop computers. It has also invested in artificial intelligence.
The company was co-founded by its CEO, Jensen Huang, and it's headquartered in Santa Clara, CA. Nvidia had frozen hiring over the summer as the broader economy slowed but now has more than 1,000 open roles, according to LinkedIn.
Apple
Tim Cook Apple
Many people on social media have celebrated Tim Cook for asking for a 40% pay cut for 2023 while avoiding layoffs at Apple.
While Cook may not have taken the cut to avoid job losses – in a filing, the company said the decision was made to address shareholder concerns about Cook's high pay package – it still won the company some goodwill.
Apple is the only major tech giant to avoid job cuts so far after Google, Microsoft, Meta, and Amazon all announced cuts in the last few months.
Cloudflare
Co-founder and CEO of Cloudflare Matthew Prince.
Cloudflare CEO Matthew Prince recently told Insider that the company is well-prepared for an upcoming recession and that he's actually "kind of excited" about it.
Prince said his cloud and cybersecurity company recognized the signs of a slowing economy and slowed hiring quicker than some larger tech companies like Amazon, Meta, and Microsoft.
"If we hired at that pace, we'd be doing layoffs, too," Prince said.
HubSpot
Yamini Rangan, CEO, HubSpot
HubSpot is one of the few companies in the software space that has avoided a massive layoff announcement in recent months.
One of the company's larger competitors, Salesforce, announced it would lay off 10% of its staff, or about 8,000 employees, earlier this year.
After Twitter laid off 50% of its workers in November, Hubspot's chief people officer posted on LinkedIn, attempting to woo the social media platform's former staffers to join Hubspot.
Block
Jack DorseyGetty
Block has avoided layoffs amid the recent downturn, although Twitter, another tech company started by Jack Dorsey, saw 50% of its staff laid off when Elon Musk took over in November.
Block is a fintech company that owns Square, Cash App, and Tidal. It was co-founded by Dorsey and Jim McKelvey in 2009.
Broadcom
Broadcom CEO Hock E. TanLucas Jackson/Reuters
In May, computer chip maker Broadcom announced it would acquire software company VMWare for $61 billion.
The deal has yet to close, but some employees at both companies fear the tie-up could result in layoffs.
So far, there have been no layoff announcements at Broadcom, though some employees at VMWare have left the company since the deal was announced.
AMD
Lisa Su, CEO of AMDAssociated Press
Chipmaker AMD hit a roadblock when new export restrictions put in place by the Biden administration meant that companies like AMD couldn't sell equipment to China.
However, CEO Lisa Su was optimistic when speaking about the business late last year at Fortune's Most Powerful Women Summit, saying she feels "wonderful" about the industry's future.
"We have lots of things in front of us, and that's what we're always thinking about," Su said. "What does the next five years bring? And that's really helped us grow as much as we have."
Palo Alto Networks
Palo Alto Networks has yet to be hit by the layoff wave that has affected many of its competitors in the cybersecurity and cloud space.
In 2020, when many companies began cutting workers amid pandemic fears, Palo Alto Networks CEO Nikesh Arora announced he would forgo his salary to avoid layoffs.
Crowdstrike
Crowdstrike is another cybersecurity company that has so far avoided layoffs.
"When you think about security, obviously, that's something that companies are going to need. In fact, when we see a downturn in the economy, when you see some of these layoffs, it's an area that's of great exposure to many companies, and it's a time when adversaries continue their relentless attacks," CEO George Kurtz said recently on CNBC.
"From a cyber perspective, the demand is there," he added.
Box
Box CEO Aaron Levie.Reuters
Despite a slowing economy, Box is doing better than ever.
The cloud storage company, which was founded by CEO Aaron Levie in 2005, recently reported $250 million in revenue, which was 12% higher than last year.
"We're really proud of the fact that this is our first billion-dollar revenue run rate quarter, so we can now say that we've crossed that billion revenue threshold, which is super exciting," Levie told TechCrunch in December.
Kelly Sullivan/Getty Images for LinkedIn
LinkedIn is the social media platform many tech workers turn to post about layoffs and announce they are open for new work. However, the social networking platform has yet to announce job cuts.
This month, the company's COO, Daniel Shapero, said he thinks it's still a great time to work in tech, despite the recent spate of mass firings.
"As much as the tech sector might be facing headwinds … there remains a very big gap between the supply of digital skills and the demand for those skills in markets around the world," Shapero told The National's Business Extra podcast.
MoonPay
MoonPay CEO, Ivan Soto-Wright.MoonPay
MoonPay is one of the few major players in the crypto space that hasn't announced major layoffs in recent months amid the collapsing price of cryptocurrencies and the fallout from FTX's bankruptcy.
MoonPay is a fintech company that provides technology that allows users to buy and sell cryptocurrencies.
The company recently hired Time president Keith Grossman as president of enterprise.
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