The seemingly impregnable tech giants of Silicon Valley have discovered that perhaps they aren’t so bulletproof after all as the economic effects of covid-19 lead to huge staff cuts across numerous startups.
From Airbnb to Uber, many of the leading companies from Silicon Valley are terminating staff contracts with some smaller tech startups laying off up to two-thirds of their employees.
Here is a roundup of the biggest cuts from California’s tech companies:
Airbnb has announced they will layoff 1,900 employees, representing one-quarter of their total workforce. The company has informed staff that they will continue to cover health insurance until the end of this year for all fired employees.
Uber has been walloped by covid-19 and announced that it will lay off as many as 3,700 workers in various locations globally. That represents approximately 14 percent of their workforce with workers from customer support and recruiting departments hit the heaviest.
Another ridesharing app, Lyft will cut its workforce by 17 percent equating to approximately 1,000 employees. They will also furlough 288 people and cut the salaries of those who keep their jobs by up to 30 percent.
Also a ridesharing app, but focusing on scooters, Lime will terminate the contracts of 83 employees or approximately 13 percent of the workforce. Lime had previously terminated the contracts of 14 percent of its employees in February.
A new company, Bird has only been in the game for three years and will terminate the contracts of 30 percent of its staff or about 400 people due to the covid-19 pandemic. Staff who are laid off will receive four weeks’ pay and three months of health coverage.
A robotics startup, Zume had to lay off a massive 66 percent of its workforce equating to around 200 employees. The layoffs came after a funding deal collapsed due to a VC freeze.