DigitalOcean (NYSE:DOCN) layoffs are a hot topic among investors on Thursday after the cloud company announced job cuts.
This will see the company reduce its headcount by roughly 200 workers, which comes to about 11% of current employees. Insiders claim that the company already cut 1,000 of these jobs and that another 100 are on the way.
Yancey Spruill, CEO of DigitalOcean, led a meeting today announcing the layoffs. That included a presentation with a slide that reads as follows, The Register notes:
“Our goal was to do this once so we would move forward towards business as usual again. Ongoing reductions are disruptive to the business and more importantly our employees, and we would like to minimize this as much as possible. There is no plan at this moment in time to conduct future reductions in force.”
DigitalOcean Joins Layoffs Trend
There’s no shortage of layoffs news, with DigitalOcean joining other companies cutting jobs. A recent example of that is Wix (NASDAQ:WIX) reducing its headcount by 370 employees today.
Investors will keep in mind that layoffs are majorly coming from tech companies. That’s the result of inflation, increasing interest rates, and recession concerns weighing on the economy. Some companies also overhired during the Covid-19 pandemic.
DOCN stock is up 2.1% as of Thursday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.