Companies like John Deere, Riachuelo, Amazon, Google, Microsoft and Twitter suffer from the current economic scenario and generate mass layoffs worldwide. So far, more than 55,4 employees have already been laid off, leaving many Brazilians worried.

Companies like John Deere, Riachuelo, Amazon, Google, Microsoft and Twitter, together, have lost trillions of dollars in recent months, and this has led to mass layoffs. Google, for example, announced last Friday (20) the dismissal of 12 thousand employees worldwide, representing 6% of its workforce. Two days earlier, Microsoft also made it official to cut 10 employees.

The same happens with John Deere, Riachuelo, Amazon, Twitter and Meta. Together, in just three months, these large companies have already turned off more than 50 thousand professionals.

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John Deere lays off 85 Brazilian employees

A agricultural machinery assembler, John Deere, which produces cane harvesters and sprayers, located in southwest Goiás, announced the layoff of 85 workers. In a note, the company states that the contracts with these workers have already been finalized, since there was a determined period and the process is already happening in the most transparent way possible.

The Catalan Metallurgical Union (Simecat) reported that in early December 2022, John Deere said it planned to lay off around 200 of its employees, due to a reduction of almost 30% in the volumes of sprayers produced from 2022 to 2023.

John Deere explains layoffs

According to John Deere, the drop went from 2.550 to approximately 1.700, therefore, almost 850 pieces of equipment were no longer produced, which brought the need to reduce personnel. Since then, several meetings have been held between the SIMECAT and John Deere, where the entity suggested measures to avoid mass dismissals, such as the use of the hour bank and lay off.

Although there was no consensus, right after the meeting, the agricultural company John Deere lowered the number of employees laid off from 200 to 130. Carlos Albino de Rezende Júnior, president of the entity, managed to ensure that the company did not dismiss another 45 employees. These professionals will have changes of position and use of the bank of hours.

The executive points out that he remains in a meeting with the company so that it is possible to provide benefits to the 85 dismissed employees.

Group that owns the Riachuelo stores closes its doors and lays off around 2 professionals

Another large Brazilian company to carry out a mass dismissal in the country was the Guararapes Group, which controls the Riachuelo stores in Fortaleza. Earlier this month, he was responsible for the dismissal of around 2 professionals at Guararapes Confecções.

The group claims that its production will be focused on Natal, in Rio Grande do Norte, however data show that those affected should not be able to quickly replace themselves in the job market. The Group highlights in a note that the mass layoff decision is part of the corporation's strategic planning, which aims to optimize the manufacturing operation to intensify the diversity, efficiency and competitiveness of the products.

Guararapes Confecções points out that the company's integrated business model remains unchanged, not impacting the country's supply chain. The controller of Riachuelo states in a note that all employees who were fired and impacted by the closure of the company in Fortaleza will have assistance and an extra package, as an aid during this period. The industrial sewing machines were donated to the seamstresses and other employees were offered an additional salary.

Enjoei dismisses 31 employees

O Enjoei virtual thrift shop fired 31 employees also last Friday (20). There was also the interruption of contracts with employees who worked in the corporate regime. According to sources, due to the internal climate of the company, the cut of collaborators was already expected.

Despite the dismissal process having been “smooth”, Enjoei did not provide any additional benefit package to those affected, as other companies did. In a note, Enjoei confirmed the dismissal, noting that the process takes place to align the projects and challenges for the coming years. The virtual thrift shop also stated that the arrangement will allow the prioritization of some short and medium-term projects.

Enjoei points out that it remains focused on providing the best collaborative consumption solution for its two million customers and sellers and the most effective result for its shareholders, partners and, of course, its professionals.

The company appreciates the contribution of each employee who leaves today, and states that it will provide all support and support. When founded in 2020, Enjoei's shares were set at R$ 10 each at the bottom of the indicative range, after just over two years, Enjoei's shares have accumulated a drop of more than 25%, closing last Friday's trading session (80 ) quoted at BRL 20.

Tech industry giants lay off nearly 55 employees around the world

Giant companies like Amazon, Google, Microsoft and Twitter carry out mass layoffs all over the world and the number of victims has already reached 55,4 thousand.

Twitter

Twitter, after being bought by Elon Musk, carried out extreme layoffs of 3,7 employees. According to the company's head of safety and integrity, Yoel Roth, said on November 4 that the layoffs affected about half of the employees.

The force reduction affected around 15% of the security sector, with the frontline moderation team receiving the least impact.

Elon Musk confirmed the mass dismissal and comments that unfortunately there is no choice, given that the company is losing more than $ 4 million a day. Everyone who left received 3 months of severance, which is 50% more than what is legally required.

Meta

On November 9, Mark Zuckerberg, executive president of Meta, announced the dismissal of more than 11 employees, representing about 13% of its workforce, the biggest cut in the company's history. Zuckerberg points out that the macroeconomic slowdown and increased competition meant that the company's revenue was much lower than expected.

According to Reuters, Meta, whose shares have lost more than two-thirds of their value, says it also plans to cut spending and extend its hiring freeze until the first quarter of this year.

Spending on the metaverse, a parallel universe announced as the future of the internet, worried company investors. So far, the metaverse unit, Reality Labs, has lost $9,44 billion in revenue, adding to $10 billion a year earlier. The company projects that losses will increase further in 2023.

Microsoft

On the 14th of this month, Microsoft announced that it will cut more than 10 employees by the months of April and June of this year. This cut represents about 5% of the total employee base, according to the company itself.

In a note to the team, Satya Nadella, executive chairman of Microsoft, says that the giant in the technology sector is still dealing with a slump in the personal computer market after the end of the pandemic. The multinational is going through important changes and it is necessary to note that, despite being eliminating positions in some sectors, it will continue to hire in key strategic areas.

Amazon

Earlier this year, Andy Jassy, ​​Amazon's chief executive, announced that the wave of mass layoffs at the company will continue and more than 18 employees will be affected. Jassy says the revisions that led to the layoff plan were intended to prioritize what is most critical to customers and the long-term health of their business.

Amazon has more than 1,5 million workers, including warehouse personnel, making it the second-largest employer in the US. This plan is not new, as in November last year the company planned to lay off around 10 employees from technology and corporate positions.

Alphabet (Google)

Last Friday (20), Google's parent company announced a global mass layoff plan that aims to cut 12 employees, following the trend of other companies mentioned above, applying a large-scale restructuring. The company's move impacts teams across the corporation, including recruiting and some corporate roles, as well as some engineering and product teams.

The layoff represents about 6% of its workforce, according to the Reuters news agency. According to Alphabet's CEO, Sundar Pichai, the company decided to reduce its workforce by around 12 employees due to a response to a different economic reality.

Understand the real reason for mass layoffs 

Analysts are watching the layoffs of companies such as John Deere, Riachuelo, Amazon, Google, Microsoft and Twitter as a combination of low sales, a decline from the pandemic and less advertising, given the current US economic situation.

According to Arthur Church, specialist in technology and innovation and professor at FGV, several of these companies expanded in 2020 and, in the following years, there was a decline. At the height of the pandemic, digitalization increased. Everyone was at home receiving government assistance and many people spent more online.

In this way, the Big Techs needed people to support the demand, but this growth did not continue after the easing of the isolation generated by the covid. To get an idea, the bigtechs, mentioned above, are in a bad moment and in the last 12 months alone, they have already lost about US$ 4 trillion in market value.