Largest Layoffs of 2023

The surge in tech job cuts continues into the new year

Microsoft

Amazon, Alphabet, and Microsoft have each announced job cuts of 10,000 or more in January, following the approximately 158,951 total layoffs in Big Tech last year.

Key Takeaways

  • The tech sector has already experienced a substantial number of job cuts in 2023, with Amazon, Alphabet, Microsoft, Salesforce, IBM, SAP, Wayfair, Vacasa, Coinbase, and Amdocs each reporting workforce reductions. In fact, three of the largest individual rounds of layoffs since the onset of the COVID-19 pandemic having taken place in January.
  • Real estate firms Compass and Anywhere Real Estate have both announced layoffs, though the exact numbers haven't been provided.
  • Multinational investment bank Goldman Sachs has announced it plans to cut 3,200 jobs, or 6% of its workforce, making this one of the biggest rounds of layoffs it has implemented since the financial crisis of 2007–2008.

Big Tech Kicks off 2023 With Big Layoffs

Multiple Big Tech companies made headlines in late 2022 for laying off thousands of workers within a short time span. This was the consequence of these same businesses overhiring while the world was in the process of recovering from the financial impact of the COVID-19 pandemic. When the economy took a turn for the worst last year, tech companies prioritized keeping payrolls low amid fears that a potential recession was on the horizon.

November was a particularly brutal month for Silicon Valley workers, with Bloomberg reporting that the sector was on track to reach early pandemic levels of layoffs just over one week into the month. The total number of tech job cuts in Q4'22 ended up being 79,953—19,812 more than 2020's second-quarter peak.

Although the number of layoffs in Big Tech eased in December, 2023 already has the second-largest total number of job cuts in a single month since January 2022, with layoffs in January having reached 63,630—and the month isn't even over yet. In fact, four of the biggest rounds of tech layoffs since the onset of COVID-19 took place this January.

Approximately 210 tech companies have implemented layoffs as of Jan. 26, 2023.

Below are the 10 tech companies that have made the largest job cuts in 2023:

  • On Jan. 4, Amazon announced it would lay off 18,000 workers, or 5% of its corporate staff. This is the largest round of layoffs announced since the pandemic started, and it was 8,000 higher than initially expected when the ecommerce giant confirmed back in November that it would be implementing job cuts.
  • Google's parent company, Alphabet, said it will be laying off 12,000 employees, or around 6% of its workforce, making this the second-largest round of layoffs since the onset of the pandemic. Among the laid-off workers, several of them had been long-tenured or recently promoted, according to CNBC.
  • On Jan. 18, Microsoft announced it would be cutting 10,000 jobs, or approximately 5% of its workforce. Following Meta's 11,000 cut back in November, this is the fourth-largest round of layoffs since the pandemic began. Microsoft also made multiple job cuts last year, with the technology corporation announcing it would lay off less than 1% of its staff on July 12 and also confirming another 1,000 jobs would be cut on Oct. 17, per CNBC and Axios, respectively.
  • Also on Jan. 4, Salesforce said it plans to cut 8,000 jobs, or 10% of its staff, in addition to reducing its office space.
  • IBM announced on Jan. 25 that it plans to cut around 3,900 jobs, or approximately 1.5% of its global workforce, though it expects to continue hiring in "higher growth areas," according to Bloomberg.
  • Multinational software company SAP said on Jan. 26 that it plans to layoff 3,000 employees, or 2.5% of its global workforce.
  • On Jan. 20, online furniture retailer Wayfair announced it will be laying off approximately 1,750 workers, or 10% of its staff.
  • On Jan. 24, vacation rental management company Vacasa announced in company-wide email that it will cut 1,300 jobs, representing 17% of its workforce.
  • On Jan. 10, Coinbase said it plans to reduce its workforce by 20%, or 950 employees.
  • Multinational software company Amdocs decided to let go of 3% of its workforce, or 700 people, on Jan. 2, making it the first tech company in 2023 to implement mass job cuts.

On Jan. 23, Newell Brands, the parent company of Rubbermaid and other consumer good manufacturers, announced it will be cutting approximately 13% of its office positions.

Real Estate, Investment Banks, and Manufacturers off to a Rough Start Too

2022 wasn't just a tough year for tech workers, as real estate firms, investment banks, and manufacturers also had their fair share of job cuts. And although there haven't been as many of these thus far in 2023, there are still a few worth mentioning:

  • On Jan. 6, Compass reported it was assessing a final wave of job cuts, in addition to pursuing a tenant to sublease its office space, according to Markets Insider. This was the real estate technology company's third round of layoffs within the last 12 months, with it cutting 450 jobs, or 10% of its workforce, back in June as well as a further 271 on Sept. 21.
  • On Jan. 9, per the same Markets Insider article, Anywhere Real Estate announced it is currently planning on reducing its workforce. Although it didn't provide a concrete number, it confirmed, with this latest round of job cuts, that it has cut 11% of its staff since June 30.
  • On Jan. 18, Rocket Companies laid off 50 employees. This follows the 20 positions that the consumer lending company had cut during the first week of the year, according to HousingWire.
  • Goldman Sachs' Chief Executive Officer David Solomon announced on Jan. 17 the multinational investment bank would cut 3,200 jobs, or 6% of its workforce. This was one of the biggest rounds of layoffs Goldman Sachs has implemented since the financial crisis of 2007–2008.
  • On Jan. 19, Capital One laid off 1,100 workers in its technology division. The bank holding company also plans to eliminate its "Agile" job family and integrate it into existing engineering and product manager roles, per Reuters.
  • On Jan. 24, 3M announced it will lay off 2,500 manufacturing jobs. The multinational conglomerate is facing a demand slowdown in its consumer-facing unit, according to Reuters.
Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
  1. Layoffs.fyi. "Layoffs.fyi."

  2. Security and Exchange Commission. "All Company Email."

  3. Newell Brands. "Press Release Details."

  4. NPR. "Goldman Sachs Is Laying off as Many as 3,200 Employees This Week."

Take the Next Step to Invest
×
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.
Service
Name
Description