scorecard
  1. Home
  2. tech
  3. It's been a bad month for tech layoffs

It's been a bad month for tech layoffs

Biz Carson   

It's been a bad month for tech layoffs
Tech2 min read

fired layoffs let go box leaving work

Reuters

Tech companies hired like crazy coming into 2016. Now they're shedding employees as ambitious business growth expectations miss targets.

HR company Zenefits, which cut 250 employees on Friday, is just one example of the rush to slim down that's sweeping the tech scene.

According to research prepared by DataFox, at least 18 tech, or tech-related, companies cut ties with employees in February, and those are just the ones that have been publicly reported.

Yahoo is reducing its staff by 15%, or more than 1,500 jobs. BlackBerry is trimming by 35%, eliminating 200 positions. DataGravity took the pre-emptive step to layoff employees this month as well.

The staff reductions come at a time when the market is slowing and companies are taking a hard look at their finances. Companies with great growth, money in the bank, and manageable burn rates will probably come out OK, but any company that has a weakness in any of those three areas could start looking at places to cut costs.

While February saw a host of companies slashing headcounts, the trend could continue as the market tightens. On Bloomberg West with Emily Chang, Khosla Ventures partner Keith Rabois said companies have too many employees for their own good.

"I think maybe technology companies have over-hired over the last four years," Rabois told Bloomberg. "I think the average technology company is between 25% and 50% bloated."

This isn't just a Silicon Valley startup problem. Companies around the country, big and small, are pulling back. Here's a recap from DataFox that shows which companies lost employees:

DataFox layoffs

DataFox

Known layoffs in February, as tracked by DataFox

Any layoffs we haven't heard of? Leave a comment below or email bcarson@businessinsider.com

NOW WATCH: This startup is trying to take down the diamond industry with Leonardo DiCaprio

READ MORE ARTICLES ON


Advertisement

Advertisement