Both Twitter and GameStop are now included in the list of companies that announced layoffs.
The social media company is not just in the process of being acquired by Elon Musk; it has also let go almost a hundred employees from its talent acquisition team.
The current market is definitely in a tough state. As interest rates are getting higher and a crypto winter looms, numerous companies have decided to make efforts to cut costs.
Cutting costs might be in the form of slowing down or totally freezing hiring. However, it could also mean letting employees go, just like what the meme stock company, GameStop, did.
Twitter's Layoff
Twitter has recently been reported to have cut down on a lot of its employees. According to Engadget, the social media company made a cut of 30 percent of its talent acquisition team.
Some of those employees had reportedly been with the company for more than 10 years.
Employees on the talent acquisition team include recruiters and others in charge of bringing on new hires.
Twitter previously announced a temporary hiring freeze as part of a larger cost-cutting effort as it works to consummate its acquisition by Elon Musk.
The deal's future is somewhat questionable; it might be in jeopardy at the moment. This comes after Musk threatened to withdraw from the acquisition, citing concerns over the number of bots on the site.
Musk reportedly discussed layoffs during a recent Twitter meeting with all the company's employees.
The Tesla CEO expressed concern about Twitter's costs but did not explicitly respond to a question about whether job cutbacks were on the table. Musk just responded, stating that it depends.
GameStop's Layoff
GameStop has reportedly informed its employees about layoffs. However, the number of employees that are included in the job cut is still undisclosed. In an internal memo, GameStop CEO Matt Furlong informed team members of the latest wave of layoffs.
In addition, the company has dismissed Mike Recupero from his position as Chief Financial Officer and is cutting workers across all divisions as part of an ambitious plan to turn the company around.
As reported by The Verge, the memo says, "After investing heavily in personnel, technology, inventory and supply chain infrastructure over the past 18 months, our focus is on achieving sustained profitability."
Furlong added, "This means eliminating excess costs and operating with an intense owner's mentality."
The layoffs are not happening at the company's retail locations but rather on the corporate side of the business.
The company's chief accounting officer, Diana Jajeh, will be promoted to the new CFO. She will be entitled to a transformation bonus of $1,965,000 in addition to her starting yearly salary of $200,000.
GameStop has evolved into so much more than just a video game company. The video game company has been reported numerous times to be venturing into and investing in Web3 technologies such as blockchain, NFTs, and crypto.
Layoffs and Hiring
Due to the current market state, both Twitter, a social media company, and GameStop, a video game company, have made efforts to cut costs in order to survive.
However, Twitter and GameStop are not the only companies that are cutting costs and laying off employees.
Companies like Netflix have recently laid off more than 300 employees as the company's revenue starts to go slow after it has lost a massive number of subscribers.
Tesla's CEO, Elon Musk, has also made the decision to cut costs by letting go of numerous employees. Additionally, the company also halted its recent hiring event in China.
Furthermore, companies like Coinbase, Gemini, Peloton, and many more have recently implemented a large scale of layoffs this year.
