As the month of May gets underway, major job cuts have already been announced by some of the biggest names in technology. Google, Peloton and insurance startup Assurance eliminated over 700 roles combined as companies battle rising costs and shifting business priorities.
Google reportedly shed about 200 positions in its ‘Core' division, which comprises many of the company's foundational engineering and security teams. The layoffs are part of a wider restructuring effort by Google that will see thousands of roles cut.
Fitness technology firm Peloton also unveiled major downsizing this week, planning to part ways with approximately 400 employees or 15% of its workforce. The company's CEO is stepping down amid a strategic review aimed at reining in expenses.
Additionally, Prudential has decided to shutter its acquired insurance subsidiary Assurance, which will result in 112 lost jobs in Seattle. The shutdown caps a turbulent period that saw Assurance change ownership hands.
While unfortunate for those directly impacted, such sizable staff reductions reflect the tough economic climate many industries now face. High inflation has reduced consumer spending power worldwide, and the ongoing tech stock correction has compelled leadership teams to cut costs in order to boost profits.
The layoffs seen so far in May suggest workforce downsizing may accelerate across multiple sectors in the coming months. While the full economic fallout is still unclear, job security has become a heightened concern for technology and other business workers.
