Google, Meta, Apple, Spotify and more: Why tech companies are slowing down hiring

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Oracle has reportedly started laying off employees in the US. While the actual number of employees known is unknown, according to a report in The Information (via IANS), layoffs are taking place in roles including CX Pre-sales Engineers and Marketing, CX Commerce, Analyst Relations, Talent Acquisition. , CRM and even developers. The report also said that the company is planning to cut jobs in Canada, Europe and India in the coming months apart from laying off employees in the US. The move is part of the company’s efforts to target cost cuts of up to a billion dollars for the service of one of its latest cloud customers – TikTok.

While Oracle may opt for cost-cutting measures to be able to scale up its operations to make room for new customers, it is not alone in the tech world to opt for such drastic measures. Companies ranging from domains like Google, Apple and Meta to crypto-companies like Unocoin and Coinbase to gaming giants like Niantic and NVIDIA to streaming platforms like Netflix and Spotify are slowing down hiring or laying off employees around the world.

Interestingly, this is all happening around the same time, which indicates a bigger trend or why it is happening. We will talk about that soon, but first let’s talk about all the recent developments.

Tech companies that have announced layoffs or slowdown in hiring

Google

Alphabet Inc CEO Sundar Pichai said in a letter to employees last month that the company would slow down hiring for the rest of the year. In the letter, he also said that Alphabet hired 10,000 new employees in the second quarter of the year and for the rest of the year, and that in 2023, the company will only hire people for key roles.

“Due to the recruitment progress we have made so far this year, we will slow down the pace of recruitment for the rest of the year while supporting our most important opportunities. For the balance of 2022 and 2023, we will focus on engineering, technical and other critical roles. will focus our recruitment, and ensure that the great talent we hire is in line with our long-term priorities,” he said in the letter, as informed of by Bloomberg.

Microsoft

Microsoft cut jobs across all divisions last month after announcing its quarterly earnings report on June 30, 2022. Sorting According to Bloomberg report good Less than one percent of the company’s workforce was affected and was part of the company’s move to “evaluate our business priorities on a regular basis, and make structural adjustments accordingly.”

heroine

Earlier this week, Amazon laid off 100,000 workers, mainly from its distribution centers and fulfillment centres, its biggest drop in recent times. The company has 1.5 million employees globally. The company had cut 27,000 employees in the first quarter of the year.

“I think it’s right for people to step back and question their hiring plans. We are doing that too. I don’t think you’ll see us hiring at the same pace that we did last year or the last couple of years.” Amazon Chief Financial Officer Brian Olsavsky said in the company’s earnings call.

meta

Meta has also announced plans to continue reducing its workforce over the next year. During the company’s earnings call last month, Meta founder Mark Zuckerberg said the company hired a lot of people earlier this year and that the workforce would be substantial for the next few quarters. He also said that many teams are going to shrink. “Now this is a period that demands greater intensity, and I expect we will do more with fewer resources,” he said during the earnings call.

He also said that Meta was leaving some positions vacant in response to attrition and focusing on performance management to weed out employees unable to meet more aggressive goals.

Apple

According to a Bloomberg report, Apple is planning to slow down hiring in 2023. According to a Bloomberg report, the company is not taking any drastic measures, but some groups will not see an increase in the number of employees next year, while some positions will not. To be backfilled

Twitter

Elon Musk has been letting Twitter employees go since the takeover bidding began. It also includes top company executives, some of whom also spoke of the sudden layoffs on Twitter. Recently, the company laid off 30 percent of its talent acquisition team. The move comes after the company announced a company-wide hiring freeze in April this year.

Uber

Similarly, Uber also announced a slowdown in hiring. In an email to employees in May of this year, Uber CEO Dara Khosrowshahi said that the company will “treat hiring as a privilege and consider when and where we add headcount”, CNBC informed of, The move comes despite Uber’s revenue more than doubling to $6.9 billion in the first quarter of the year.

Netflix

Netflix furloughed 300 more employees in a second round of layoffs in June this year, representing about three percent of the company’s workforce. “Today we laid off approximately 300 employees … While we continue to make significant investments in the business, we have made these adjustments so that our costs can increase in line with slower revenue growth,” the company said in a statement. Reported by CNBC.

Spotify

Similarly, Spotify CEO Daniel Eke said in a letter to employees that the company is slowing hiring by up to 25 percent. He added that the company will still hire new talent but will be more prudent in its approach.

niantic

Pokémon Go-maker, Niantic, laid off eight percent of its workforce last month, roughly 85-90 positions. The company has also canceled four projects including Transformers: Heavy Metal. According to reports, the Niantic CEO said in an email to employees that Niantic was “facing a time of economic turmoil” and that it had to further streamline its operations to weather any future economic turmoil. .

Unity

In June this year, Unity laid off about four percent of its global workforce, which is around 300 to 400 employees. While the company didn’t give a reason, a spokesperson told PC Gamer, “As part of an ongoing planning process where we regularly measure our resource levels against our company’s priorities, we’ve decided to improve some of our resources.” Decided to regroup to drive focus and support our long-term growth.”

Tesla

Tesla CEO Elon Musk, while addressing Bloomberg’s Qatar Economic Forum in June this year, said he plans to cut the company’s salaried workforce by more than 10 percent over the next three months, taking into account the current macroeconomic conditions. has created.

“Tesla is slashing the number of salaried workforce by about 10% over the next three months… It is quite clear that we expect an increase in our hourly workforce. We grew very rapidly on the salaried side and in some areas We grew very rapidly in the U.S., and hence the need for a reduction in the salaried workforce,” Musk said at the time.

coinbase

Similarly, Coinbase also announced a slowdown in hiring. Coinbase CEO Emily Choi in a blog post Told“We are announcing that we are slowing hiring so that we can re-prioritize our hiring needs against our highest priority business goals.”

Apart from these, companies like Unocoin, NVIDIA, Snap and WazirX have also announced similar measures.

In India, ed-tech startup Udemy cut 1,000 jobs in April. Similarly, according to some reports, Byju’s laid off 2,500 employees in June this year, while Unacademy laid off 2.6 percent of its employees.

These are just a few of the many tech companies that have laid off employees this year. As of July 2022, there are more than 32,000 tech workers in the US, according to numbers compiled by Crunchbase. The number is much higher in India, which has laid off more than 43,000 employees in 342 companies since April 1, 2022. This brings us to the most important question – why are companies around the world hiring and reducing their workforce?

Why is this happening?

There are many reasons for this and the answer is anything but simple. For some companies, the move can be seen as a way to balance the excessive hiring they’ve done before, as was the case with Amazon and Apple, for others, it’s meant to counter slow growth. can be seen as a method. Decrease in subscriber count, as in the case of Netflix and Meta. There is a third category of companies that are just trying to keep their head above water. As Twitter CEO Parag Agarwal recently said in a townhall meeting with the company’s employees – “Our costs exceed our revenues. This is not a good thing.”

In addition, the precarious economic situation or the impending recession is acting as a major factor driving these precautionary but drastic measures. While some technical executives have spoken openly about this with their employees, others are taking a more reserved approach.

“The uncertain global economic outlook has been top of mind. Like all companies, we are not immune to economic adversities. What I cherish about our culture is that we have never seen these kinds of challenges as obstacles. Instead, we see them as opportunities to shift our focus and invest for the long term,” the Alphabet Inc CEO told employees in the letter.

Zuckerberg also didn’t shy away from talking about it when he said, “If I had to wager, I’d say it could be one of the worst recessions in recent history,” in a weekly employee Q&A session last month ( as reported by Reuters). Similarly, Musk, responding to a question on the impending slowdown in QEF, said, “I think a slowdown is inevitable at some point. As far as a slowdown in the near future is concerned, I think it’s more likely.” Is.

Spotify spokesman Adam Grossberg pointed to Spotify’s CFO Paul Vogel’s comments at the company’s Investor Day, saying, “We’re clearly aware of the growing uncertainty about the global economy. And while we’ve yet to see any results on our business,” Spotify said. Not seeing a material impact – we are closely monitoring the situation and evaluating growth in our workforce in the near future.”

Uber’s CEO, on the other hand, took a more reserved approach when he said in an email to employees, “It is clear that the market is experiencing a seismic shift and we need to react accordingly.”

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