Alphabet, Microsoft, Amazon, and More Join Industry-Wide Layoff-Fest. Now Here’s Sting

Lon Harris
Lon Harris is a contributor to dot.LA. His work has also appeared on ScreenJunkies, RottenTomatoes and Inside Streaming.
Alphabet, Microsoft, Amazon, and More Join Industry-Wide Layoff-Fest. Now Here’s Sting

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2023 is only 3 weeks old, and already, there have been enough layoffs throughout the tech and media industries for news organizations to publish actual round-ups.

Just this past week, Google’s parent company Alphabet announced plans to cut around 6% of its global workforce, after CEO Sundar Pichai explained that he’d hired based on “a different economic reality” than the one facing the company today.


Fellow tech giant Microsoft also announced 10,000 job cuts, making up nearly 5% of its own global workforce. That comes after the company’s 2022 round of layoffs to its consumer R&D division. Their explanation: an attempt to consolidate their staff and save money on office space by creating “higher density across our workspace.”

As if that weren’t painful enough, Amazon this week also announced 18,000 layoffs on its corporate side, among the widest-scale layoffs in the company’s history. One department that will be hit particularly hard is Prime Air, Amazon’s nascent drone delivery system that was a pet project of founder and Jeff Bezos. In a memo to remaining employees, Amazon’s worldwide retail chief Doug Herrington chalked the decision up to “uncertain economic times” and an effort to “improve [the company’s] cost structure.”

If you include Meta dropping 11,000 staffers back in November – around 13% of its total workforce – that means that four of the top five largest tech companies in the world have announced significant layoffs in just the past few months. (Apple remains the lone holdout among the Big Five.)

And the situation isn’t just limited to the largest players in the industry, either. 2023 kicked off with Salesforce announcing cuts to around 10% of its staff, or more than 7,000 employees, as part of a new “measured approach” to a “challenging” economic environment. This week, Vox Media announced plans to lay off 7% of its staff, or around 130 employees, while a plunge in sales will push online furniture retailer Wayfair to cull 1,750 people from its workforce. Plus coworking juggernaut WeWork also announced plans to layoff 300 people on Thursday. According to one estimate, the tech and media industries combined lost around 130,000 jobs in the past 12 months alone.

Though the explanations differ on specifics, for the most part, everyone’s falling back on the same fundamental explanation. The early days of the pandemic boosted activity online – from streaming to ecommerce to telecommunications and beyond – pushing tech companies to adjust and expand their workforces accordingly. More recently, the economic headwinds have shifted, as investors have grown increasingly concerned about a potential recession and a protracted political battle over the “debt ceiling.” This, in turn, has forced companies to rethink their overall strategies and cut costs.

Interest rates also tell part of the story. When interest rates were particularly low, investors found increasing appeal in tech stocks, which offered lower short-term profits but huge future potential and major long-term promises. (Think of companies like Uber and Tesla.) As interest rates increased, and investors sought more immediate returns, these kinds of stocks became less appealing, driving tech companies again toward austerity measures. Additionally, the cratering digital ad market has had a major impact on many tech and media companies, including major players like Google, Amazon, Snap, Netflix, and Meta.

Some questions remain, however, about the dire necessity of such deep cuts on an industry-wide level. To take one specific example, Microsoft earned more than $200 billion in 2022, and committed $69 billion to potentially acquire the video game publisher Activision Blizzard. The company has a market cap of over $1.7 trillion. As TechCrunch points out, the salaries of 10,000 employees are unlikely to have a major overall impact on the company’s bottom line. In a case of deeply unfortunate timing, Microsoft’s layoff news hit just hours after the company paid Sting to perform at an “intimate” event with executives at Davos in Switzerland.

Even without command performances from Rock and Roll Hall of Famers, repeated stories about cuts and tough economic times are almost certain to impact morale among those still working for tech companies. Particularly among younger workers who may be experiencing mass layoffs for the first time. Companies valued in the trillions culling journalists and engineers is a bitter pill to swallow, even if the top story on every technology website wasn’t a consequence-free Sam Bankman-Fried waxing philosophical about his many alleged crimes from the comfort of his parents’ kitchen.


Big Wins: Dodgers Take the Title ⚾, ChatGPT Levels Up🚀

🔦 Spotlight

Happy Friday, LA! It’s been a week of big wins, on and off the field. 🎉

⚾️ First up, let’s talk Dodgers. With a thrilling 7-6 comeback victory over the Yankees in Game 5, the Dodgers clinched their eighth World Series title, their first since 2020. The city is buzzing, and fans are ready to celebrate! A parade kicks off this morning at 11 a.m., starting at City Hall and winding down to Flower Street, with a ticketed celebration at Dodger Stadium for those wanting to keep the festivities going.

Image Source: Dodgers

💻 Meanwhile, in the tech, OpenAI just rolled out a game-changing update for ChatGPT. Plus and Enterprise users can now access real-time internet search, powered by Microsoft Bing, bringing ChatGPT's responses fully up-to-date. This means users can now ask about the latest news, hotspots, or recent LA startup announcements, and ChatGPT will pull in fresh, relevant answers directly from the web. Previously limited to information up to 2021, ChatGPT’s new browsing capabilities make it a valuable digital assistant for anyone needing real-time insights in fast-paced industries like tech and entertainment.

Image Source: ChatGPT

🔍 The real-time search feature also includes “Browse with Bing,” allowing ChatGPT to source information from multiple sites for detailed answers to complex questions. Whether you’re exploring the latest venture capital trends in LA or curious about the best local spots, ChatGPT’s new browsing power helps you stay ahead with the latest info. This leap forward in AI functionality makes ChatGPT even more versatile and powerful for everyone, from business owners to everyday users.

From the Dodgers’ World Series win to OpenAI’s latest ChatGPT update, there’s a lot to celebrate in LA this week. Here’s to champions, innovation, and a city that’s always pushing boundaries. 🌆✨


🤝 Venture Deals

LA Companies

  • Final Boss Sour, a Los Angeles-based gaming-themed snack company specializing in healthier sour snacks, has raised a $3M Seed funding round led by Science Inc. to expand its product offerings and operational capabilities. - learn more
LA Venture Funds
  • Smash Capital led a $50M Series B round for Read AI, a productivity-focused AI company, bringing its total funding to $81M. The company offers a platform that enhances meeting efficiency through features like note-taking, summarization, and transcription. Additionally, Read AI introduced "Read AI for Gmail," a free Chrome extension that integrates information from various applications, reducing the need to switch between apps. The funds will be used to increase the company's headcount in engineering, data science, and business teams. - learn more
  • Distributed Global participated in a $25M funding round for Nillion, a company that provides decentralized privacy solutions designed to secure sensitive data using advanced technologies like secure multi-party computation. - learn more
  • Act One Ventures participated in a $5M Seed funding round for Latii, a construction materials supply chain startup, to enhance its platform that connects contractors with suppliers, aiming to streamline procurement processes and reduce costs in the construction industry. - learn more
  • SmartGateVC participated in a pre-seed funding round for Ritual Dental, a company revolutionizing dental care by integrating advanced technology and microbiome science to provide personalized, preventive treatments. - learn more

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      Billion-Dollar Milestones and Snapchat’s New Features

      🔦 Spotlight

      Happy Friday Los Angeles!

      This week’s spotlight showcases LA’s thriving tech scene, featuring Snapchat’s latest feature updates and two local startups Liquid Death and Altruist, making TechCrunch’s Unicorn List for 2024.

      Image Source: Snap

      Snapchat’s recent fall updates bring fresh features, including a new iPhone camera shortcut for instant snaps, Halloween-inspired AI-powered Lenses, and Bitmoji costumes inspired by Mean Girls and Yellowstone. Bitmoji stickers now reflect trending Gen-Z expressions like “slay” and heart symbols for added flair in chats. Plus, the “Footsteps” feature on Snap Map allows users to track their past adventures privately, adding a nostalgic touch.

      Image Source: Liquid Death

      ICYMI, two LA startups joined the Unicorn Club—achieving valuations over $1 billion. Liquid Death, based in Santa Monica, is a canned water company with edgy branding and a humorous sustainability focus. Known for viral marketing and brand partnerships, it redefines bottled water as a lifestyle brand and environmental statement. In March, Liquid Death closed $67 million in strategic financing, raising its total funding to over $267 million and valuing it at $1.4 billion.

      Image Source: Altruist

      Altruist, a Culver City-based fintech platform, offers financial advisors streamlined tools to better serve their clients. With a user-friendly investment and account management platform, Altruist has gained strong traction in the finance world. In May, it announced a $169 million Series E funding round, bringing its total funding to over $449 million and earning a valuation of $1.5 billion.

      Together, Liquid Death and Altruist exemplify LA’s capacity for innovation across diverse sectors, from lifestyle branding to fintech. Whether reshaping financial tools or redefining sustainable branding, these companies showcase LA’s unique entrepreneurial spirit. Go LA!

      Check out TechCrunch’s 2024 Unicorn List here. And don’t miss Snapchat’s latest features—perfect for adding some fun, connection and maybe a few selfies this weekend!


      🤝 Venture Deals

      LA Companies

      • Freeform, a company bringing AI to metal 3D printing, raised $14M in funding from NVIDIA’s NVentures and AE Ventures to further develop its AI-powered 3D printing technology for industrial-scale production. - learn more
      LA Venture Funds
      • Anthos Capital participated in a $70M Series D round for Carbon Robotics, which develops AI-powered robotics for precision agriculture, and the funding will be used to accelerate the growth of its autonomous weeding technology. - learn more
      • Anthos Capital participated in a $3.5M seed round for Plasma Network, aimed at expanding access to USDT stablecoins on the Bitcoin network, with the investment supporting the network’s growth and efforts to enhance stablecoin accessibility through the Lightning Network. - learn more

      LA Exits


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          ⚖️FTC’s "Click to Cancel" Rule and Its Ripple Effect on Tech

          🔦 Spotlight

          Happy Friday Los Angeles,

          The FTC’s new “Click to Cancel” rule is shaking up subscription-based tech. Now, instead of navigating a maze of cancellation hurdles, users can cancel subscriptions as easily as they signed up—with a single click. This shift is a wake-up call for SaaS, streaming, and app-based companies, where once-hidden exit options often kept users around simply because canceling was a hassle.

          The rule also requires businesses to send regular renewal reminders, ensuring customers stay informed about upcoming charges. It's more than a cancellation button—it’s about transparency and giving users control over their decisions.

          For startups, the impact goes deeper than UX adjustments. Many have relied on "dark patterns," which subtly discourage cancellations by hiding the exit. Now, companies must shift toward building genuine loyalty by delivering real value, not by complicating exits.

          While this might affect retention rates initially, it could lead to more sustainable business models that rely on satisfaction-driven loyalty. Investors may start prioritizing companies that emphasize transparent, long-term engagement over those that depend on dark patterns to maintain retention metrics.

          The rule opens the door to more ethical UX design and a truly user-centered approach across the tech industry. It may even set a precedent against manipulative design in other areas, such as privacy settings or payment methods.

          Ultimately, the “Click to Cancel” rule presents an opportunity for the tech industry to foster trust and build stronger customer relationships. Startups and established companies that embrace transparency will likely stand out as leaders in a new era of customer-centric tech, where trust—not tricky design—is what retains users.

          As the tech landscape continues to evolve, LA Tech Week 2024 offers a chance to explore these shifts in real-time. Check out the upcoming event lineups to stay informed and make the most of your time:

          For updates or more event information, visit the official Tech Week calendar.


          🤝 Venture Deals

          LA Companies

          • Ghost, a company supporting top brands and retailers with streamlined logistics and fulfillment solutions, raised a $40M Series C funding round led by L Catterton to fuel its continued growth and innovation. - learn more

          LA Venture Funds
          • Assembly Ventures participated in a $27M Series A round for Monogoto, a provider of software-defined connectivity solutions that enable secure, cloud-based IoT and cellular network management on a global scale. - learn more
          • Angeleno Group participated in a $32M Series C round for REsurety, a company that recently launched an innovative clean energy marketplace aimed at providing better financial and operational insights to support renewable energy transactions. - learn more

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