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Layoffs hit Silicon Valley as Amazon freezes hiring

Payments company Stripe and rideshare company Lyft, two Silicon Valley darlings, announced major layoffs.

Payments firm Stripe and rideshare company Lyft, two Silicon Valley darlings, announced major layoffs on Thursday as the economy continues to eclipse from Big Tech.

The tough economic times are also hitting Amazon, which announced it would freeze new hires at companies in a highly uncertain economic environment.

The bloodshed came as the tech world awaits major layoffs at Twitter following its $44 billion acquisition by Elon Musk.

According to media reports, Musk is preparing to cut thousands of jobs as early as Friday in a bid to find ways to help pay for the massive takeover.

Stripe, a payments company based in San Francisco and Dublin, said it would cut 14 percent of its workforce to tell its employees it was “overleased to the world we find ourselves in.”

The company said it would return staff to the 7,000 it had in February.

“We are facing persistent inflation, energy shocks, higher interest rates, slashed investment budgets and scarcity of seed funding,” Stripe chief executive Patrick Collison wrote in a note to staff.

Ride-hailing app Lyft, a rival to Uber, said it was letting 13 percent or 683 non-driver employees go. It cited a likely recession in the US and the rise in insurance costs for drivers.

The wave of layoffs comes just after a dismal earnings season for most tech giants, with Facebook owner Meta seeing its stock price plummet 73 percent this year to its lowest level since 2015.

Apple reported solid gains on rising revenues, but iPhone sales fell short of estimates as service revenue growth slowed.

“The Amazon workforce freeze is a clear and unfortunate signal that the mood music of the retail and consumer economy is shifting,” said GlobalData director Neil Saunders.

“The heady days of growth are now over and have given way to an environment where greater caution is required to protect the bottom line,” he added.

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