Mass Layoffs in 2022: What’s Next for Employees?
In the business world, mass layoffs are a difficult but frequent occurrence that often leaves employees unsure of how they’ll be affected and what to do in the event that they receive a pink slip.
The US employment market is now strong, with low unemployment rates and rapid job creation, but as many firms struggle to adjust to the changing economy, this might all change soon.
With all of this in mind, mass layoffs have already started this year at numerous US corporations.
So, what exactly is a mass layoff?
A “mass layoff” can be defined when the following occurs:
- When at least 50 employees are laid off withing 30 days or less resulting in the laid-off employees equaling more than one-third of the company’s workforce
- 500 employees are laid off within 30-days or less, no matter how large the company’s workforce
This can be devastating for both the individuals affected personally and the economy as a whole.
What companies have had mass layoffs this year?
Meta mass layoffs:
After weeks of anticipation, Meta confirmed widespread layoffs of 11,000 of its employees on Wednesday, October 9. These layoffs will affect 13% of Meta’s personnel and come after the company’s shares have lost two-thirds of their value.
Although Zuckerberg apparently acknowledged responsibility for Meta’s “poor” decisions, it is unclear whether additional layoffs are imminent.
In Meta’s 18-year existence, this mass layoff is the first.
Twitter mass layoffs:
Nearly half of Twitter’s global workforce, 3,700 people, were let go on Friday, November 4.
The content moderation teams, sales and advertising divisions, engineering & development divisions, and other areas were all impacted by Twitter’s major layoffs.
The largest mass layoff by a digital business in 2022 involved Twitter, which let go of close to 50% of its workers.
Zillow mass layoffs:
Zillow, an online provider of real estate services, terminated 300 employees at the end of October 2022, citing a sustained downturn in the housing market.
These layoffs, which represent around 5% of the company’s overall workforce, are the result of growing worries about an imminent recession.
Peloton mass layoffs:
Peloton announced yet another round of layoffs in October, firing 500 workers who made up 12% of their existing employment, following significant layoffs in February 2022 that resulted in 20% of its personnel being let go.
The Wall Street Journal was the first to publish the layoffs, which are said to be Peloton’s most recent internal reorganization effort in response to the sudden decline in sales following its record rise during the at-home training surge during the epidemic.
Snapchat mass layoffs:
According to Snap Inc., the company will let go of 20% of its personnel, or about 1,300 people.
On August 31, a spokeswoman for Snap confirmed the news of the layoffs, stating that they were intended to reduce expenses.
Most of their original long-form Snapchat shows will no longer be produced as a result of the layoffs, which will mostly affect their content staff. There will be layoffs of workers in the business’ hardware section as well.
Early in August, SoundCloud CEO Michael Weissman stated that the online music streaming community platform would be cutting its global headcount by about 20% after a busy year of collaborations with companies like Pandora and Splice.
Layoffs at SoundCloud are anticipated to impact staff members globally, not just in the United States, and are being cited as part of a “major company restructuring” and a turbulent economic environment.
Netflix mass layoffs:
Due to the streaming giant’s declining subscriber base, 150 employees, or around 2% of its staff, have been let go by Netflix.
Netflix representatives say that these layoffs originate from a business need and not from any personal performance difficulties of those being let go, citing sluggish revenue as the cause of the company’s poor growth.
Other notable companies with layoffs in 2022:
- Meta layoffs: 13% of workforce laid off (November, 2022)
- Twitter layoffs: 50% of workforce laid off (November, 2022)
- Zillow layoffs: 5% of workforce laid off (October, 2022)
- Peloton layoffs: 12% of workforce laid off (October, 2022)
- DocuSign layoffs: 9% of workforce laid off (September, 2022)
- Taboola layoffs: 6% of workforce laid off (September, 2022)
- Snapchat layoffs: 20% of workforce laid off (September, 2022)
- Outbrain layoffs: 3% of workforce laid off (July, 2022)
- Lyft layoffs: 2% of workforce laid off (July, 2022)
- The Mom Project layoffs: 15% of workforce laid off (July, 2022)
- Opensea layoffs: 20% of workforce laid off (July, 2022)
- Substack layoffs: 14% of workforce laid off (June, 2022)
- Ninantic layoffs: 8% of workforce laid off (June, 2022)
- MasterClass layoffs: 20% of workforce laid off (June, 2022)
- Bird layoffs: 23% of workforce laid off (June, 2022)
- Superhuman layoffs: 22% of workforce laid off (June, 2022)
- Cameo layoffs: 25% of workforce laid off (May, 2022)
- Robinhood layoffs: 9% of workforce laid off (April, 2022)
- Virgin Hyperloop layoffs: 50% of workforce laid off (February, 2022)
- Peloton layoffs: 20% of workforce laid off (February, 2022)
- Beachbody layoffs: 10% of workforce laid off (January, 2022)
What to do if you’ve been laid off:
There are a few critical things you should do right once after getting laid off, even though you might feel overwhelmed by what to do.
Before deciding what to do next, if you’ve recently lost your job, make sure to take care of these three things right away.
Tip 1: Apply for unemployment immediately
If you’ve been laid off, the first thing you should do is apply for unemployment. The majority of the time, you can apply for unemployment online by simply entering your Social Security number, license or state ID number, and the contact details of your prior employer.
Tip 2: Health insurance options
It’s also crucial to research your health insurance choices after getting laid off. If you previously had health insurance via your employer, you might be qualified for COBRA, which enables you to continue having coverage for a set amount of time after leaving your work.
Tip 3: Retirement savings
If your previous employer offered a 401(k)-contribution plan, you may choose to cash it out, albeit doing so is typically not suggested due to potential penalties.
The account could also be rolled over into an IRA, but you should take the time necessary to discuss your options with a qualified financial expert before deciding which is best for you.
Top industries to apply to after you’ve been laid off:
Once you’ve taken care of those three tasks to keep you afloat while you look for work, take some time to update your résumé, begin networking, and have a look at the following fields that are in high demand for qualified workers.
Talented individuals are always needed in the tech world, and this situation is not likely to change anytime soon. Companies like Google, Amazon, and Apple are constantly searching for top talent in sectors like data science, software engineering, and product management since these positions pay very well.
Industry of Digital Marketing
The digital marketing industry has seen tremendous growth as a result of social media and internet advertising. Talented marketers are needed by businesses to assist them in reaching their target customers online in new and innovative ways.
It’s a fantastic time to think about a career as a social media coordinator, digital marketing manager, and more because there are so many high-demand positions in these fields that pay well.
The creative sector, which includes well-paying jobs in copywriting, graphic design, and web design, is also in high demand.
Companies are constantly looking for creative experts to help them differentiate themselves from the competition. If you’re a creative professional who has just lost your job, you might want to think about reentering the field.
Are more mass layoffs coming in 2022?
Even though many businesses have undergone major layoffs and job patterns for 2022 are still changing and evolving, economists claim that this won’t necessarily be the norm going ahead.
Recent data on employment in the United States demonstrates that employment rates are still stable. While some industries have been hurt harder by layoffs than others, these businesses were generally ones that saw higher-than-average growth over the Covid-19 epidemic.