Layoffs in tech: Here are the companies impacted

This year has been hellish for several tech companies based in the Bay Area, especially in the last month. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ [Los Angeles Times] [Essential California Newsletter] June 22, 2022 [View in browser]( [Click to view images]( Tower in the background along Filbert Street in San Francisco. (Gary Coronado / Los Angeles Times) Good morning, and welcome to the Essential California [newsletter](. It’s Wednesday, June 22. I’m Justin Ray. This year has been hellish for several tech companies based in the Bay Area, especially in the last month. Established businesses and startups alike have seen layoffs and hiring freezes. Which companies have been impacted? - Coinbase, a cryptocurrency exchange platform,[laid off 18% of its workforce]( — or about 1,100 people. - Short-term rentals startup Sonder [laid off a fifth of its corporate employees](. Touted as an upscale alternative to Airbnb, the company was valued at $1.9 billion less than a year ago. - Online personal shopping and styling service Stitch Fix laid off [15% of its salaried roles]( — around 330 employees. - Healthcare startup Carbon Health [laid off 250 employees,]( around 8% of the company’s global workforce. - Netflix[laid off 150 employees and dozens of contractors and part-time workers]( in late May. Many on social media noted that several cuts impacted social media teams, writers and editors who aimed to elevate diverse content and talent. Meta (Facebook’s parent), Twitter, Intel, Lyft, and Uber have abruptly imposed hiring freezes, [according to Fortune](. You can learn more at [Layoffs.Fyi](. The site, which launched at the beginning of the pandemic, tracks tech industry layoffs. What does it mean? [Some experts]( see tech as a bellwether for the greater economy. That’s because investing in companies often means forgoing immediate profits and playing the long game. During times of economic turmoil, investors are less likely to engage in any form of risk. Problems in tech can have a ripple effect. San Francisco’s chief economist Ted Egan told The Times that generally, less spending and economic activity means more demand for social services. The city — like many in California — [has been slowly clawing itself back to pre-pandemic times.]( However, recent national economic trends threaten its progress. “It started when the [Federal Reserve began to raise interest rates]( Egan said. “Tech stock prices, and venture capital investment, are both highly sensitive to interest rates. When tech companies that are not yet profitable suddenly see that fundraising is getting challenging, they have to go into cost-savings mode, and that can mean layoffs.” When I asked if the layoffs and hiring freezes meant dire times to come in San Francisco, Egan said it isn’t likely. “The labor market is still quite tight,” Egan said. “In San Francisco, even in the tech industry, where a lot of the layoffs are concentrated, there are three open job listings for every hire, so a lot of jobs are still going unfilled.” And now, here’s what’s happening across California: Note: Some of the sites we link to may limit the number of stories you can access without subscribing. This new California coronavirus wave isn’t sticking to the script: Big spread, less illness. For the past two years, COVID-19 has followed predictable, if painful, patterns. But in a world with vaccines and treatments, the latest wave is acting differently from previous ones; despite wide circulation of the coronavirus, the impact on hospitals has been relatively minor. [Los Angeles Times]( Our daily news podcast If you’re a fan of this newsletter, you’ll love our daily podcast “The Times,” hosted every weekday by columnist Gustavo Arellano, along with reporters from across our newsroom. Go beyond the headlines. Download and listen [on our App]( subscribe [on Apple Podcasts]( and follow [on Spotify](. ADVERTISEMENT POLITICS AND GOVERNMENT A bacteria outbreak in two state hatcheries is forcing the California Department of Fish and Wildlife to euthanize about 350,000 rainbow trout, which could affect fishing stock in some state waterways this summer. [Los Angeles Times]( [ Trout from a hatchery truck are transferred to a submerged cage at Big Bear Lake. ] Trout from a hatchery truck are transferred to a submerged cage at Big Bear Lake. 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Will residents step up to plant them? Trees provide myriad benefits to Angelenos, including capturing stormwater runoff. Neighborhoods that lack them can be 10 degrees warmer than surrounding areas. Yet Los Angeles is finding it difficult to maintain them in neighborhoods for several reasons. [Los Angeles Times]( [Two people check out trees in Watts ] Urban Forestry Supervisor Ladale Hayes, left, and Aaron Thomas, Urban Forestry manager, both with North East Trees, check out the growth of a tree they recently planted outside the Imperial Gardens public housing project along Imperial Highway in Watts in August 2021. (Genaro Molina / Los Angeles Times) Yikes. The largest reservoir in a state system that provides water to 27 million Californians has already reached its peak level for the year, barely surpassing half its capacity. 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