Labor Market Is Tight Yet Layoffs Surge As Tesla, Coinbase, Netflix And Others Cut Staff

The recent unemployment claims numbers confirm the Federal Reserve's assertion that the labor market is tight. However, layoffs are intensifying, particularly in the tech and cryptocurrency sectors.

According to a report released Thursday, U.S. unemployment insurance applications decreased but stayed close to January levels, indicating a softening of labor market conditions.

Initial applications for unemployment insurance fell by 2,000 to 231,000 in the week ending June 25, according to Labor Department data. This number is somewhat higher than the weekly average of 218,000 prior to the 2019 COVID-19 pandemic.

The numbers say the labor market is solid, but, people are being laid off in the thousands. Why?

The end of an era: A pandemic-fueled growth boom, venture capitalist FOMO (fear of missing out), and periods of overhiring during times of rapid expansion all contributed to the boom and bust of the tech and cryptocurrency sectors in 2021.

So, what companies are affected? We sourced Crunchbase and Business Insider to compile a list of notable tech names that are cleaning house, and protecting capital via layoffs:

Compass Inc COMP

• Number of employees: 450
• Percentage of staff: 10%
   

Redfin Corp RDFN

• Number of employees: 470
• Percentage of staff: 6%
   

Coinbase Global Inc COIN

• Number of employees: more than 1,000
• Percentage of staff: 18%
   

Tesla Inc TSLA

• Number of employees: 10,000
• Percentage of staff: 10%
   

Carvana Co CVNA

• Number of employees: 2,500
• Percentage of staff: 12%
   

Reef Technology

• Number of employees: 750
• Percentage of staff: 5%
   

GoPuff

• Number of employees: 400
• Percentage of staff: 3%
   

Better.com

• Number of employees: 4,000
• Percentage of staff: 43%
   

Peloton Interactive Inc PTON

• Number of employees: 2,800
• Percentage of staff: 20%
   

Robinhood Markets Inc HOOD

• Number of employees: 300
• Percentage of staff: 9%
   

PayPal Holdings Inc PYPL

• Number of employees: 83
• Percentage of staff: 0.27%
   

Bolt.com

• Number of employees: 250
• Percentage of staff: 33%
   

Gemini

• Number of employees: 1000+
• Percentage of staff: 10%
   

BlockFi

• Number of employees: 170
• Percentage of staff: 20%
   

Netflix Inc NFLX

• Number of employees: 450
• Percentage of staff: 4%
   

Postscript

• Number of employees: 43
• Percentage of staff: 19%