The tale of two techs: layoffs, and launches
As the tech industry convenes in Las Vegas to pitch and party, companies across the space have announced significant layoffs and other cuts this week.
Why it matters: These cost-cutting measures will have a broad impact in tech, particularly on the media side, and will further dampen ambitions for dealmaking.
State of play: At least three companies reported cuts Wednesday.
- Salesforce, which has made about 80 acquisitions, including Slack, plans to cut 10% of its workforce, according to an SEC filing. That equates to about 8,000 employees. It's also reducing office space.
- Vimeo, which went public in May 2021 and later that year bought Wirewax and Wibbitz, announced layoffs impacting 11% of its workforce, per Insider. It had already cut 6% of its staff in July.
- Amazon, which has continued to invest heavily in media (most recently with its acquisition of MGM), plans to cut 18,000 jobs, CEO Andy Jassy wrote in a memo posted on its site. It's also been reorganizing its media teams.
Yes, but: Despite the market pressures, TMT executives aren't putting their heads in the sand. Head honchos in Las Vegas for the annual CES shindig are launching new strategies, pitching products.
- For example Roku, itself coming off a round of layoffs, unveiled its own line of TVs at CES this week — a big bet for the streaming company given its past and continued reliance on partnerships with other TV makers.