Companies cut jobs and freeze hiring to prepare for economic downturn

(Reuters) – Tech companies, crypto exchanges and financial firms are cutting jobs and slowing hiring as global economic growth slows due to rising interest rates, runaway inflation and a slump energy in Europe.

Sign of a difficult second half of the year, growth in the world’s largest economy, the United States, contracted for the second consecutive quarter, while in the euro zone, business growth slowed sharply in June due to the rising cost of living.

Company name Date Impact on layoffs Comment

Alibaba Group March 16 About 39,000 employees began laying off employees in February. He discussed work

cuts with several business units that month and left to

to make specific plans, a source told Reuters.

Tencent Holdings March 16 10%-15% headcount During an internal meeting at Tencent at the end of 2021, CEO

Pony Ma told staff that the company should prepare for a

“winter,” two sources told Reuters.

Tesla Inc June 3 About 10% in “I have a super bad feeling about the economy,” CEO Elon

salaried Musk staff said in emails seen by Reuters.

JPMorgan Chase & June 22 Over 1,000 “Our staffing decision this week was the result of

Co-employees are changing in the mortgage market,” a spokesperson said.

Shopify Inc July 26 10% off its “Ultimately placing this bet was my call to make and I

the workforce got it wrong,” CEO Tobi Lutke said, referring to a bet

on the post-pandemic growth of online shopping gone wrong.

Netflix May 17 150 Jobs “As we continue to invest significantly in

300 the company, we made these adjustments so that our costs

June 23 jobs are growing alongside our slower income growth,” said the

Coinbase Global June 14 1,100 jobs “We seem to be entering a recession after more than 10 years

Economic boom Inc. A Recession Could Lead To Another Crypto

winter, and could last for a long time,” said CEO Brian

OpenSea July 14 20% of “The reality is that we have entered unprecedented times

its workforce combination of a broad crypto and macro winter

instability, and we must prepare the company for the

possibility of a prolonged downturn,” CEO Devin Finzer said.

Klarna 23 May 10% of its “Since (2021), we have witnessed a tragic and unnecessary

the labor war in Ukraine is unfolding, a shift in consumer sentiment, a

sharp rise in inflation, a very volatile stock

market and a likely recession,” CEO Sebastian

Robinhood April 26 9% of its

Company Name Date Action Taken Comment

Apple Inc July 18 To slow hiring, The decision stems from a move to be more careful when

spend the next year in uncertain times, even if it is not a company-wide policy,

in some units, Bloomberg News reported, citing sources.

Meta Platforms Jun 30 Cut Considering Hiring “If I had to bet, I’d say it could be one of

Inc engineers through the worst of the slowdowns we’ve seen in recent history,” CEO

minus 30% to Mark Zuckerberg told workers in a weekly Q&A session with employees

~6,000-7,000 sessions, audio of which was heard by Reuters.

Twitter Inc May 12 To Pause Most CEOs Parag Agrawal, in a memo to employees seen by Reuters,

hiring, the review attributed the decision in part to a lack of trust in

existing employment Twitter’s ability to meet the aggressive growth targets it had

offers to see if they are fixed in 2020.

Uber May 9 To reduce “We will treat hiring as a privilege and be deliberate

Technologies Inc is hiring, reduce when and where we add staff,” CEO Dara

expenses for Khosrowshahi said in a letter seen by Reuters.

Snap Inc May 23 To slow hiring and “We continue to face rising inflation and interest rates,

pushing some anticipated supply chain shortages and labor disruptions, platform

hiring to the 2023 policy changes, the impact of the war in Ukraine and

more,” CEO Evan Spiegel said in a memo to employees. Inc July 28 The company is

Intel Corp June 8 Freeze hiring in

Source: Company filings, media reports

(Compiled by Chavi Mehta, Tiyashi Datta and Aditya Soni in Bengaluru; edited by Arun Koyyur)

Copyright 2022 Thomson Reuters.

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