Part 3 | 2023 Job Market Insights: Exploring Job Listing and Layoff Patterns

In December 2022, LinkUp took a sample of 546 public companies and analyzed their job listing cuts compared to their layoff announcements. We also made predictions about companies like Twilio and Applovin that had a higher likelihood of beginning a second round of layoffs.

More than six months have passed and layoff announcements show no signs of slowing down. It’s worth looking at recent developments and comparing them to our newest job listings data.

But, before jumping in, let’s look at our previous predictions.

Job Market Updates from January 2023

Twilio

In our Layoff part 2 post, we cited a pivot for Twilio toward profitability rather than growth, stating they fit the pattern for another layoff. Unfortunately, our prediction was accurate, as they experienced another round of layoffs in February 2023.

AppLovin

We predicted AppLovin's workforce would continue decreasing while they pursue profitability and effective management. They’ve decreased their job listings but they have not announced any additional layoffs.

Splunk

Cited as another candidate for announcing layoffs, Splunk’s job postings continued to decline since December 2022. Here, we saw Splunk layoff 4% of their workforce in February 2023.

Tripadvisor

Since the end of last year, Tripadvisor reduced their job listings, but did not declare any layoffs.

Now, let’s examine more layoffs that have occurred since December and endeavor to make new predictions of who could announce layoffs in the near future.

New 2023 Job Listings Insights

First, let’s look at some layoff headliners that have taken place in the last six months.

Airbnb

During the onset of COVID, Airbnb made the tough decision to reduce their staff by 30%. In March 2023, Airbnb announced they reduced their recruiting staff by 30%, affecting 0.4% of employees. Using LinkUp job listing data, we observed the large declines prior to their announcements. On a brighter note however, it appears their job listings are making a comeback, so we can conclude that layoffs are unlikely in the near term.

BuzzFeed

In January 2023, BuzzFeed was quick to jump on the AI trend; both job postings and share price caught momentum as a result of their new AI initiative. However, after the AI announcement, LinkUp job listing data showed a decline before their second round of layoffs on April 20. This affected 180 employees and shut down their news unit team which historically operated at a loss. This layoff came as a surprise, as BuzzFeed had already cut 12% of its workforce back in December 2022.

Google

Even big tech companies weren't immune from layoffs, as evidenced by Google. In January 2023, they reduced their workforce by roughly 12,000 employees due to an uncertain economic outlook. Notably, job postings are on the rise once more, suggesting that they’ve identified new initiatives worthy of investing in.

Microsoft

Microsoft is another tech giant to succumb to layoffs. After having gone through two rounds in 2022, Microsoft made two more layoff announcements in 2023. There was a decline in listings on the Microsoft website prior to each announcement.

While Microsoft hasn’t shown a similar rebound as Google, it will be interesting to see whether they follow suit and reinvest in projects during the second half of 2023.

LendingTree and LendingClub

At the start of the year, LendingClub announced they would reduce their headcount by 14% and quickly after, LendingTree made a similar statement. In both cases, increasing interest rates and an uncertain economy have pressured lenders. Both firms reduced job listings prior to each layoff announcement. LendingTree still appears to be pulling back on hiring.

Rivian

In the midst of increasing electric vehicle competition and price war concerns, Rivian Automotive has tightened their belt again. Last year, Rivian laid off 6% of their workforce and then another 6% in February 2023. LinkUp job listings data signaled both events based on the drop in listings.

Uber

UberWith the demand for ride-share services continuing to grow, it seems like Uber would have been an unlikely company to appear on the layoff list. However, job listings appear to tell a different story. A recent large decline in listings follows a similar trend observed in 2020 before two rounds of layoffs. Cost-cutting measures could be taking place as Uber pushes toward profitable quarters.

Wayfair

In January 2023, Wayfair announced they were cutting 1,750 jobs over the next six months in order to control costs. Their CEO said, “Unfortunately, along the way, we over-complicated things, lost sight of some of our fundamentals, and simply grew too big.” (Shah). This layoff, like the one in August 2022, followed a sharp decline in job listings. As of now, it appears their job postings have rebounded and are now maintaining a steady level.

Future Job Market Predictions

Next, let’s examine a handful of companies that are showing signs of layoffs. Please note that the scope of these companies is confined to companies who have previously been listed on layoff.fyi, and appears to be exhibiting a similar pattern to the last time they reduced headcount

Yelp

Earlier this year, Yelp had a strong earnings report that showed promising growth. It may surprise you to see them in this predicament, but compared to 2020, there is another large drawdown.

IBM

IBM’s CEO recently spoke about implementing AI and what that would mean for its workforce. Because they’re replacing some roles with AI, it may come as no shock that they made the layoff prediction list. Their job listings continue to decline even after layoffs in January 2023.

Conclusion

In our LinkUp May Jobs Recap, we observed job listings level off at the macro level. This hints that layoffs could be slowing down.