Tag: tech layoffs

  • Etsy Lays Off 220 Employees to Streamline Product and Engineering Operations

    Etsy Lays Off 220 Employees to Streamline Product and Engineering Operations

    E-commerce marketplace Etsy has announced plans to eliminate approximately 220 jobs, representing roughly 10% of its workforce, as part of a major organizational restructuring led by CEO Kruti Patel Goyal. The layoffs primarily affect employees in product, engineering, design, research, and analytics teams. According to the company, the move is intended to streamline decision-making, improve collaboration, and accelerate product development rather than reduce costs.

    More Focused Structure Needed: CEO

    In a message to employees, CEO Kruti Patel Goyal stated that Etsy is redesigning its organizational structure to remove complexity and create smaller, more agile teams. She noted that the company has grown significantly over the years, leading to overlapping responsibilities and slower execution across key business functions. The reorganization is expected to reduce the number of management layers and improve coordination between engineers, product, and design departments. Management hopes the restructure will enable Etsy to deliver new features faster and respond more quickly to changing market demands.

    Etsy Seeks Long-Term Growth

    This move comes at a time when Etsy is trying to build on its marketplace after experiencing sluggish consumer spending and reduced demand for discretionary items in some key markets. The company has been under pressure from shifting shopping behaviors and increased competition from other online players. Etsy stated that the restructuring is designed to position the company for its next phase of growth by improving operational efficiency and increasing the speed at which products are developed and delivered. Affected employees will receive severance packages, extended healthcare benefits where applicable, career transition assistance, and support in finding new employment opportunities.

    Focus on Innovation and Marketplace Expansion

    Etsy emphasized that it remains committed to investing in its marketplace, seller tools, and customer experience. The company plans to develop new features that help independent sellers connect with buyers and provide an improved search and discovery system. Unlike cost-saving measures, Etsy’s latest steps are strategic actions aimed at simplifying internal processes and enhancing effectiveness as the global e-commerce industry becomes increasingly competitive.

  • Microsoft Lays Off 4,800 Workers, Xbox Faces Major Studio Overhaul as AI Investments Intensify

    Microsoft Lays Off 4,800 Workers, Xbox Faces Major Studio Overhaul as AI Investments Intensify

    Microsoft has announced a fresh round of layoffs, reducing its global workforce by approximately 4,800 positions—about 2.1% of its total staff—as the company restructures operations and doubles down on efficiency. The largest impact falls on the Xbox gaming division, which will shed around 3,200 roles during the current fiscal year as part of a sweeping reorganization.

    These cuts come as Microsoft balances heavy spending on artificial intelligence infrastructure with underperformance in parts of its gaming business. The company is rethinking its gaming strategy, moving away from aggressive acquisitions and toward operational discipline.

    Xbox Spins Off Studios

    As part of the restructuring, several Xbox game development studios are being separated from the parent organization. Compulsion Games and Double Fine Productions are expected to become independent companies, while Ninja Theory and Undead Labs will move under new ownership. Microsoft is also reviewing strategic options for Arkane Studios.

    Xbox head Asha Sharma explained that the moves are intended to create a more sustainable business model. The restructuring is expected to continue throughout the year, reducing management layers and focusing resources on high-performing game franchises.

    AI Spending Reshapes Priorities

    Microsoft emphasized that these layoffs are not a direct replacement of workers with AI. Instead, the company cited changing market conditions and rising operating costs as the primary drivers. Like other tech giants, Microsoft is investing billions in AI infrastructure—data centers and supercomputing resources—which has increased pressure to improve profitability across other divisions.

    The gaming unit also faces intensified competition from Sony and Nintendo, along with sluggish hardware and subscription sales, prompting a complete strategic review.

    This is Microsoft’s second large-scale layoff in a year, signaling ongoing reorganization amid industry-wide shifts accelerated by artificial intelligence.

  • Cisco Slashes 471 California Jobs in Major Software Engineering Restructuring

    Cisco Slashes 471 California Jobs in Major Software Engineering Restructuring

    Cisco is cutting 471 positions across three California offices as part of a broader restructuring initiative announced in May. The layoffs affect employees in San José, Milpitas and San Francisco, according to notices filed with the California Employment Development Department.

    The networking and cybersecurity giant previously stated it would eliminate fewer than 4,000 jobs worldwide, representing less than 5% of its workforce. The latest filings offer granular detail on the California roles included in that plan.

    Layoffs Spread Across Bay Area Offices

    Cisco will eliminate 236 positions in San José, 154 in Milpitas and 81 in San Francisco. Employees received notice on May 14, with terminations scheduled to begin July 13. Some affected workers may leave within 13 days of that date.

    The reductions are permanent, as stated in the company’s Worker Adjustment and Retraining Notification letters. California law mandates at least 60 days’ notice before a large layoff or facility closure.

    Cisco declined to provide additional information beyond the May restructuring announcement, which the company described as an effort to lower costs in certain areas while reallocating resources toward targeted investments.

    CEO Chuck Robbins told employees that Cisco expects to benefit from AI growth but reaching that goal requires “making hard decisions — about where we invest, how we’re organized, and how our cost structure reflects the opportunity in front of us.”

    Software Engineering Roles Hit Hardest

    The layoffs span departments including software development, product management, design and business operations. Software engineers represent the largest single group, with 56 positions eliminated: 34 in Milpitas, 19 in San José and three in San Francisco. Additionally, 39 software engineering technical leader positions will be cut, with 27 in Milpitas.

    Other affected roles include 17 engineering product managers, 15 software engineering leaders, 12 directors of software engineering, 12 engineering program managers, nine directors of product management and eight business operations managers. Seven site reliability engineers, seven program managers and seven software quality assurance engineers are also included.

    A Cisco business partner executive described the cuts as a familiar pattern, calling it “the regular Cisco cadence” before quarterly earnings announcements. Cisco did not confirm that assessment.

    AI Investment Rises Amid Broader Tech Layoffs

    The layoffs come as Cisco posts stronger financial results: quarterly revenue of $15.8 billion, its highest for a fiscal third quarter, and net income up 35% to $3.4 billion. The company markets its networking products as critical AI infrastructure, with demand for data centers and AI computing systems boosting spending on networking and cybersecurity.

    Nevertheless, many tech firms are cutting staff while increasing AI investment. Meta, Snap, Block, Oracle and Amazon have all announced job cuts this year, with some executives linking workforce changes to automation and AI tools.

    US technology companies announced 123,653 job cuts from January to May, a 66% increase from the same period in 2025, according to Challenger, Gray & Christmas. The firm noted that AI was cited more often than any other reason for layoffs, though it questioned whether AI alone explains the broader trend.

    Cisco reported approximately 86,200 employees as of July 2025. Its planned global reduction of fewer than 4,000 positions would affect less than 5% of that workforce.

  • Anthropic Pays AI Researchers Over $1M Amid Mass Layoffs at Microsoft, Google, Amazon

    Anthropic Pays AI Researchers Over $1M Amid Mass Layoffs at Microsoft, Google, Amazon

    The race for top AI talent has reached new heights. Reports indicate that Anthropic, a leading artificial intelligence company, is now offering some of its researchers annual compensation packages exceeding $1 million. These packages include base salary, company stock, and other benefits, setting a new benchmark in the tech industry.

    The revelations come from H-1B visa filings, which show that Anthropic has been paying base salaries of $1.12 million and $1.38 million to two Members of Technical Staff during its first two fiscal years of 2026. Notably, these figures exclude bonuses and stock awards, meaning the total compensation is significantly higher. The filings do not disclose names, but they underscore the intense demand for specialized AI expertise.

    This surge in AI salaries contrasts sharply with a wave of layoffs sweeping through major tech companies. Microsoft, Google, Amazon, Meta, and Intel have all announced job cuts as they reallocate resources toward AI initiatives. While thousands of software engineers and support staff face unemployment, top AI researchers command unprecedented pay.

    The disparity highlights a fundamental shift in hiring priorities. Companies are aggressively cutting non-core roles while investing heavily in AI talent, which they view as critical to staying competitive. Beyond salary, firms like Anthropic, OpenAI, Meta, Google DeepMind, and xAI offer signing bonuses, large stock grants, and flexible work arrangements to attract the best minds.

    As the AI arms race intensifies, the competition for talent is expected to widen. For now, the biggest beneficiaries are the researchers at the center of this high-stakes battle.