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Tech companies slowing down hiring

With recession fears mounting, inflation, the war in Ukraine and the ongoing pandemic, many tech companies are reassessing their staffing needs, some imposing hiring freezes, rescinding offers and even starting layoffs.

Here’s a look at the dozens of companies that are pulling out.

  • alphabet inc, Google’s parent company, is slowing down its recruitment efforts. According to an internal memo, Chief Executive Officer Sundar Pichai told employees that although the company added 10,000 Googlers in the second quarter, the company will slow the pace of hiring for the rest of the year and prioritize engineers and technical talent.

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

  • Amazon.com Inc said in April it was overstaffed after ramping up during the pandemic and had to be reduced. “As variation died down in the second half of the quarter and employees returned from furloughs, we quickly went from understaffed to overstaffed, resulting in lower productivity,” said Chief Financial Officer Brian Olsavsky.

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

  • apple inc plans to cut hiring and spending in some departments over the next year to deal with a possible economic downturn, according to people familiar with the matter. But it’s not a company-wide policy, and the iPhone maker is still moving forward with an aggressive product release schedule. Apple had 154,000 employees as of September when its last fiscal year ended.

Carvana Co, an online used car retailer, laid off 2,500 employees in May, about 12% of its workforce. In an unusual move, the executive team will forgo salaries for the remainder of the year to pay severance pay to those laid off, according to a filing with the Securities and Exchange Commission.

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

Coinbase Global Inc, a cryptocurrency exchange, told employees it would lay off 18% of its workforce in June to prepare for an economic downturn. Job offers have also been withdrawn. “We appear to be entering a recession after more than a decade of economic boom,” CEO Brian Armstrong said in a blog post.

“While it’s difficult to predict the economy or the markets, we always plan for the worst so we can do business in any environment,” he said. The company ended the quarter with about 5,000 employees.

  • compass inc, a real estate brokerage platform, is cutting 450 jobs, about 10% of its workforce, according to a report last month. At the end of 2021, the company had almost 5,000 employees.
  • Gemini Trust Coa cryptocurrency exchange founded by Bitcoin billionaires Cameron and Tyler Winklevoss announced a 10% staff cut in June.
  • GoPuff, a grocery delivery app, is laying off 10% of its workforce and closing dozens of warehouses. The cuts will affect about 1,500 employees – a mix of corporate and warehouse workers.

Lyft vehicles before winning numbers

Lyft Inc, the ride-hailing platform, told employees it would rein in hiring in May after its shares plummeted. The company had about 4,500 employees in 2021. Lyft arch-rival Uber Technologies Inc. was more optimistic. CEO Dara Khosrowshahi told Bloomberg in June his company is “recession-resistant” and has no plans for layoffs.

  • Metaplatforms Inc, Facebook’s parent company, has cut plans to hire engineers by at least 30%. CEO Mark Zuckerberg told employees he expects one of the worst downturns in recent history. At the end of March, the company employed more than 77,800 people.
  • microsoft corp told workers in May that it would slow hiring in the Windows, Office and Teams groups as it braces for economic volatility. The company had 181,000 employees in 2021. More recently, the software maker cut some jobs — less than 1% of its total — as part of a restructuring.
  • Netflix Inc, the streaming giant, has had several rounds of high-profile layoffs since it reported losing 200,000 subscribers in the first quarter. In April, the company began to scale back some marketing initiatives, then laid off 150 employees in May and 300 in June. Last quarter, it reported $70 million in severance costs and lost another 970,000 subscribers. Netflix had 11,300 employees in 2021.

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

Peloton Interactive Inc announced in February plans to shed about 2,800 jobs worldwide, equivalent to about 20% of its corporate functions, as part of a surprise restructuring that saw its CEO John Foley and several members of the executive team step down. In 2021, the company said it had nearly 9,000 employees.

Redfin Corp, another real estate agency, cut 8% of its staff in June. “We don’t have enough work for our agents and support staff,” CEO Glenn Kelman wrote in a blog post, saying that demand in May was 17% below forecast and he expected the company to grow more slowly during a real estate crisis. At the end of last year, the company employed around 6,500 people.

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

Rivian Automotive Inc plans to eliminate hundreds of non-manufacturing jobs and dual-function teams. The Southern California electric vehicle maker, which employs more than 14,000 people, could see an overall reduction of around 5%. In a memo to employees, CEO RJ Scaringe said, “We will always focus on growth; However, Rivian is not immune to the current economic circumstances and we need to ensure we can grow sustainably.”

Salesforce Incthe cloud-computing platform, has slowed hiring and reduced travel expenses, according to a leaked memo reported by Insider in May.

Spotify Technology SA, the audio service, is cutting headcount growth by about 25% to offset macroeconomic factors, CEO Daniel Ek said in a note to employees in June. The company has more than 6,500 employees, according to its website.

stitch fix, an online personalized styling service, announced in June that it is targeting a 15 percent reduction in salary positions — about 4% of its workforce — with the majority coming from non-tech corporate jobs and styling leadership roles. It has to contend with higher spending and weaker demand. According to its website, the company has 8,900 employees.

  • Tesla Inc, the electric vehicle maker, laid off 200 Autopilot workers when it closed a facility in San Mateo, California, in June. CEO Elon Musk previously said layoffs were necessary in an increasingly shaky economic environment.

In an interview with Bloomberg, he said about 10% of employees would lose their jobs in the next three months, although the total number of employees in a year could be higher. At the end of last year, the company employed 100,000 people worldwide.

  • Twitter Inc Amid uncertainty surrounding Elon Musk’s takeover of the company, a hiring freeze was instituted and job offers withdrawn in May, according to an internal memo by Bloomberg. In 2021 the company had 7,500 employees.

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

Wayfair Inc, the online furniture retailer, imposed a 90-day hiring freeze in May. The company had 18,000 employees in March.


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