tech companies that are slowing down hiring

With fears of recession, inflation, war in Ukraine and a prolonged pandemic rising, many tech companies are rethinking their staffing needs, with some of them imposing hiring moratoriums, canceling offers and even starting layoffs.

Here’s a look at dozens of companies that are retreating.

  • Alphabet Inc., the parent company of Google, is slowing down recruitment. According to an internal memo, Chief Executive Sundar Pichai told employees that while the company added 10,000 Google employees in the second quarter, hiring rates will slow down for the rest of the year and give priority to engineering and technical professionals.

“Like all companies, we are not immune to economic headwinds,” he said. At the end of March, the search giant had about 164,000 employees.

  • Inc. said in April that the staff was bloated after ramping up during the pandemic and needed to be downsized. “As the situation calmed down in the second half of the quarter and employees returned from vacation, we quickly went from understaffed to overstaffed, resulting in lower productivity,” said CFO Brian Olsawsky.

Amazon is subletting some storage space and has paused development of facilities intended for office workers, saying it needs more time to figure out how much space employees will need for hybrid work. As of March, the company employed 1.6 million people, making it the largest employer in the tech world.

  • Apple Inc. plans to slow down hiring and spending in some divisions next year to cope with a potential economic downturn, according to people familiar with the matter. But this is not the policy of the entire company, and the iPhone maker still adheres to an aggressive product release schedule. In September, when the last fiscal year ended, Apple had 154,000 employees.

Karvana Co., an online used car retailer, laid off 2,500 people in May, about 12% of its workforce. According to a filing with the Securities and Exchange Commission, the executive team will waive payroll until the end of the year to pay severance pay to those who were laid off.

At the end of last year, the company employed more than 21,000 full-time and freelance employees.

Coinbase Global Inc., a cryptocurrency exchange, told employees that it cut 18% of its staff in June to prepare for the economic downturn. He also canceled job offers. “It looks like we are entering a recession after more than 10 years of economic boom,” CEO Brian Armstrong said in a blog post.

“Although it is difficult to predict the economy or the markets, we always plan for the worst in order to conduct business in any conditions,” he said. The company ended the quarter with about 5,000 employees.

  • Compass Inc., a real estate brokerage platform, is laying off 450 positions, about 10% of its staff, according to a filing filed last month. As of the end of 2021, the company had approximately 5,000 employees.
  • Gemini Trust Co.The cryptocurrency exchange founded by bitcoin billionaires Cameron and Tyler Winklevoss announced a 10% staff cut in June.
  • Hopaff, a grocery delivery app, is laying off 10% of its workforce and closing dozens of warehouses. The cuts will affect about 1,500 employees – both corporate and warehouse.

Lifting cars outperform profits

Elevator Inc, a taxi-booking platform, told employees that it was restricting recruitment in May after its stock plummeted. In 2021, the company employed about 4,500 employees. The main competitor of Lyft Uber Technologies Inc. was more optimistic. In June, CEO Dara Khosrowshahi told Bloomberg that his company was “recession resistant” and had no layoffs planned.

  • Meta Platforms Inc., the parent company of Facebook, has cut plans to hire engineers by at least 30%. CEO Mark Zuckerberg told employees he expects one of the worst recessions in recent history. At the end of March, the company employed more than 77,800 employees.
  • Microsoft Corporation told workers in May that he was slowing down hiring for Windows, Office, and Teams as he prepared for economic instability. In 2021, the company employed 181,000 employees. Most recently, the software maker cut several jobs – less than 1% of the total – as part of a reorganization.
  • Netflix Inc, the streaming giant, has gone through several highly publicized layoffs since reporting a loss of 200,000 subscribers in the first quarter. The company began winding down some marketing initiatives in April, then laid off 150 employees in May and 300 in June. Last quarter, he posted $70 million in severance pay expenses and lost another 970,000 subscribers. In 2021, Netflix had 11,300 employees.

Niantic Inc, the creator of the video game Pokemon Go, laid off 8% of his team in June. It was an attempt to streamline operations and prepare the company to weather economic storms, CEO John Hanke told employees in an email. At the end of last year, Niantic had about 800 employees.

Peloton Interactive Inc. announced plans to cut about 2,800 jobs worldwide, roughly 20% of its corporate positions, in a surprise reshuffle in February when its CEO John Foley and several members of the executive team stepped down. In 2021, the company said it had about 9,000 employees.

Redfin Corporation, another real estate brokerage, cut 8% of its staff in June. “We are short of work for our agents and support staff,” CEO Glenn Kelman wrote in a blog post, saying May demand was 17% below forecasts and that he expects the company to grow more slowly during the downturn in the market. housing. At the end of last year, the company employed about 6,500 employees.

Robinhood Markets Inc., an online brokerage, laid off 9% of its workforce in April. It had about 3,800 employees at the end of last year and has posted more than $2 billion in losses since going public last July.

Rivian Automotive Inc plans to cut hundreds of non-manufacturing jobs and redundant teams. The Southern California electric vehicle maker, which has more than 14,000 employees, could cut its overall cut by about 5%. In a memo to employees, CEO RJ Scaringe said, “We will always be focused on growth; however, Rivian is not immune to the current economic circumstances and we need to make sure we can deliver sustainable growth.”

sales force computing platform, is slowing down hiring and cutting travel expenses, according to a leaked internal memo published in May by Insider.

Spotify Technology SA, a sound service, is cutting employee growth by about 25% to adjust for macroeconomic factors, CEO Daniel Ek said in a June note to staff. According to the data on the website, the company employs more than 6,500 employees.

Stitch correction, an online personalized style service, said in June that it was pursuing a 15% cut in full-time positions — about 4% of its workforce — with most of them in non-tech corporate and style leadership positions. It copes with higher costs and weaker demand. According to its website, the company has 8,900 employees.

  • Tesla Inc, an electric vehicle maker, laid off 200 autopilot workers by closing a plant in San Mateo, Calif., in June. CEO Elon Musk has previously said the layoffs will be necessary amid an increasingly shaky economy.

In an interview with Bloomberg, he said that about 10% of employees will lose their jobs over the next three months, although the total headcount could increase in a year. At the end of last year, the company had 100,000 employees worldwide.

  • Twitter Inc. initiated a moratorium on hiring and began withdrawing job offers in May amid uncertainty surrounding Elon Musk’s acquisition of the company, according to an internal memo obtained by Bloomberg. In 2021, the company employed 7,500 employees.

Unity Software Inc., which makes a video game engine, surprised employees in June when it sent notices of violations to 200 of its 5,900 employees, or 4% of the state. According to Kotaku, its CEO assured employees that there would be no layoffs.

Wayfair Inc., an online furniture retailer, suspended hiring for 90 days in May. As of March, the company had 18,000 employees.

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