(KRON) — Facebook, Google, and Netflix are big tech companies in Silicon Valley that are cutting staffing. Some companies have seen their stock prices plunge – as fears over future economic uncertainty hit wall street.
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Tesla is one of the latest tech and automotive companies to announce layoffs. A California regulatory filing shows the company will be laying off 229 employees from its San Mateo office. Bob O’Donnell, the CEO of Technalysis Research, a technology market research company. He says the cuts in San Mateo were related to salaries, “they are replacing the people they were paying more money to in San Mateo, so that’s a cost cutting measure,” he told KRON4.
O’Donnell says tech companies are adjusting their staff levels because of the economy. “Tech companies who had big plans, the growth they had been enjoying, are finally realizing they need to readjust those plans, as things have started to slow down”
Netflix laid off 300 people in June. And Google’s CEO announced on Tuesday that the company’s hiring will focus on “engineering, technical, and other critical roles”.
A leaked memo from Facebook shows the social media company is looking to weed out “low performers”. Facebook, however, told KRON4 no layoffs are planned.
O’Donnell says he foresees tech companies continuing to focus on only hiring people with specialized skills such as engineers and computer programmers, but operational people in advertising or marketing may get slashed.
O’Donnell says as people are being laid off, tech companies are still hiring. It’s a big sector for U.S. growth, and he doesn’t foresee heightened unemployment numbers for the Bay Area.