Tech layoffs to top 1,000 in Bay Area by late May, state reports show

By George Avalos

Tech and web-based companies intend to cut well over 1,000 jobs in the Bay Area between now and Memorial Day, according to new official filings with state labor officials.

SAP, Oracle America, PayPal, Instacart and Thin Film Electronics are among the technology companies that have alerted the state’s Employment Development Department of their intentions to reduce staffing levels.

All told, about 1,100 jobs will be lost through the employment reductions being planned by the five companies, WARN notices filed with the state EDD show.

According to the filing, SAP will eliminate 446 jobs — 179 in Palo Alto, 173 in San Ramon and 94 in South San Francisco.

Oracle intends to cut 352 positions: 255 in Redwood City and 97 in Santa Clara.

PayPal plans to reduce staffing levels by 183 jobs: 160 in San Jose and 23 in San Francisco. The South Bay job cuts are slated to occur at the e-commerce titan’s offices on North First Street in San Jose.

Thin Film Electronics has issued an alert of 54 upcoming job cuts in San Jose.

Instacart, an e-commerce unicorn that offers a web-based same-day grocery delivery service, intends to eliminate 162 jobs: 86 positions in San Francisco, 41 in San Mateo, 15 in Oakland, 13 in Berkeley and seven in Campbell.

For SAP, Oracle and PayPal, the majority of the employment reductions will be in software jobs.

The job cuts being planned by the five companies were all scheduled to occur at various points in May, although in PayPal’s case, some could occur as soon as early April.

“SAP will provide affected employees with certain pay and benefits, including 60 days’ notice, pay through the layoff date and employee benefits through the end of the month in which the layoff takes place,” P. Daniel Healey, head of human resources in North America for SAP, said in a letter to the EDD regarding the layoffs in all three Bay Area locations.

Oracle said it will keep its Santa Clara complex open after the layoffs occur.

“Oracle is re-evaluating its product focus and skill set gaps, and for these reasons, has decided to lay off certain employees in the Product Development organization,” Anje Dodson, Oracle’s vice president for human resources, said in a letter to the EDD. “It is anticipated that these layoffs will be permanent.”

Thin Film said in a letter detailing that company’s job cuts that most of the affected employees were in the hardware part of the business.

The job cuts at Instacart were triggered by the termination of a relationship between the delivery service and Whole Foods after Amazon bought the upscale supermarket chain. That relationship had begun in 2014.

“Instacart will be winding down its relationship with Whole Foods Market and closing its in-store operations across Whole Foods Market stores,” Steve Chariyasatit, an employment counsel with Maplebear, which does business as Instacart, wrote in a letter to the EDD. “The reductions will affect Instacart employees currently working at all Whole Foods locations.”

At the heart of the Instacart and Whole Foods partnership was an arrangement in which in-store shoppers — essentially paid couriers for Instacart — were delivering groceries from Whole Foods.

“We expect to offer and be able to place the vast majority of impacted in-store shoppers currently working at Whole Foods locations in an in-store shopper position at another retailer in their area,” Chariyasatit said in the letter to the EDD.