Business: Bay Area tech firms plan more than 1,000 job cuts.
Shutterfly, 23andMe, Comcast among those making reductions
SAN JOSE >> At least eight Bay Area tech companies have alerted the state government of upcoming job cuts that altogether top 1,000 positions, official documents show.
The tech job cuts are at company locations in Palo Alto, Redwood City, Santa Clara, Livermore, Sunnyvale, Mountain View, and San Francisco, according to filings with the state’s Employment Development Department.
Zume Pizza in Santa Clara and San Francisco, VMWare in Palo Alto, Shutterfly in Redwood City, Intel in Santa Clara, Comcast in Livermore, Xilinx in San Jose, 23andMe in Sunnyvale, and NortonLifeLock in Mountain View have all sent WARN letters to the EDD to officially notify the state agency of the staffing reductions.
An array of positions are affected, and the staff cuts are slated to occur over the next few weeks or months.
Zume cut 252 positions, including 172 in Santa Clara and 80 in San Francisco; VMWare eliminated 211 jobs in Palo Alto; Shutterfly chopped 153 positions in Redwood City; Intel cut 153 jobs in Santa Clara; Comcast eliminated 127 positions in Livermore; Xilinx shed 123 jobs in San Jose; 23andMe cut 84 jobs in Sunnyvale; and NortonLifeLock jettisoned 59 jobs in Mountain
View, the EDD filings show.
Redwood City-based Shutterfly, an Internetbased photo-sharing and image sharing firm, stated that the company’s staff cuts largely involved a shift of workers to other parts of the United States.
“Shutterfly will be eliminating or relocating certain positions at its corporate headquarters location (in Redwood City) to other company locations in other states,” as a result of its “workforce restructuring,” Rex Buxton, associate general counsel for Shutterfly, wrote in a letter to the EDD.
The job cuts by Shutterfly arrived in the wake of a merger in January of Shutterfly and rival Snapfish that private equity fund Apollo Global Management orchestrated.
Palo Alto-based VMWare, a software company, said that its job cuts affected both on-site workers and people employed remotely.
“Approximately 155 employees assigned to work at Palo Alto headquarters and approximately 56 employees assigned to remote locations that report into Palo Alto headquarters are anticipated to be separated from employment,” Christy Peetz, VMWare senior corporate counsel, wrote in the company’s letter to the EDD.
The VMWare staffing reductions are due to start April 1 and be completed during April.
Santa Clara-based Intel notified the EDD that its job cuts would occur at multiple locations in the chipmaker’s headquarters city.
“Intel Corp. has decided to reduce its workforce by laying off a total of 129 employees at the following
Santa Clara sites: 2200 Mission College Blvd., 3065 Bowers Ave., 3600 Juliette Lane, and 3601 Juliette Lane,” Intel executive Chris Rodriguez wrote to the EDD.
The job cuts at Intel are due to begin March 31.
Mountain View-based Zume, as part of a shift away from robotic pizza making to a focus on food packaging and delivery systems, is cutting jobs at multiple locations, including Mountain View.
San Jose-based Xilinx anticipates that its staffing reductions will occur on April 3.
“Xilinx will conduct a reduction in force at its facility located at 2100 Logic Dr. in San Jose, as well as other domestic and international facilities,” Mini Khroad, chief people officer with Xilinx, wrote to the EDD. “The planned action is expected to be permanent. There will be no ‘bumping’ rights. Subsequent
layoffs are not anticipated.”
Despite these employment reductions, the tech sector continues to boom in the Bay Area.
Over the 12 months that ended in mid-2019, tech companies in Silicon Valley added 14,100 jobs, which accounts for a jaw-dropping 49 percent of all the jobs added in the region during the same one-year period, according to the 2020 Silicon Valley Index.
“Tech industry jobs have grown significantly since the beginning of the economic recovery, with a 45 percent increase in the number of tech jobs” in Silicon Valley over a period from 2010 through mid-2019, the 2020 Silicon Valley Index report stated. The increase totaled more than 139,000 tech jobs during the nine-year stretch, the report found.