In recent months, a number of tech companies and venture capital-backed companies have announced plans to freeze hiring, rescind accepted offers, or lay off employees.
Tesla CEO Elon Musk recently ordered a global hiring halt, citing “super bad sentiment” about the economy, according to an email obtained by Reuters. His comments came just days after JPMorgan CEO Jamie Dimon warned of a coming economic “hurricane” as the Federal Reserve continues its process of interest rate normalization.
In the context of such disturbing comments, here is a list of the latest companies to announce hiring freezes, layoffs and slowdowns.
Intel has frozen hiring for its PC and laptop chips unit. The cost-cutting measure was announced in a memo reviewed by Reuters. The company is “halting all hiring and suspending all job applications” within its client IT group, the memo says. Intel has 122,900 full-time employees.
You’re here (TSLA)
In addition to Musk’s email to executives, the electric vehicle giant’s CEO also sent a message to employees on Friday, June 3, notifying them of his plans to cut 10% of the workforce. “Note that this does not apply to anyone who actually builds cars, batteries, or installs solar power,” Musk wrote in the note. Tesla has nearly 100,000 employees worldwide.
Coinbase (PIECE OF MONEY)
The crypto exchange platform has announced that it will extend the hiring freeze for the foreseeable future. Coinbase will also cancel some already accepted offers. “We always knew crypto would be volatile, but this volatility coupled with larger economic factors could test the business, and us personally, in new ways. If we are flexible and resilient and stay focused on the long term , Coinbase will come out stronger on the other side,” LJ Brock, Chief Human Resources Officer at Coinbase, said in a blog post. Coinbase has over 4900 employees.
Chipmaker Nvidia is also holding back hiring right now, with CFO Colette Kress writing in her own commentary following the company’s first-quarter earnings report that the graphics card giant will slow hiring. in the second half of its 2023 fiscal year to onboard employees it has already hired. Nvidia has been stung by both the COVID lockdowns in China and the halt in sales in Russia, missing analyst estimates for its second quarter and saying it will take a $500 million hit due to the dual crisis. The company has 22,473 employees in 57 locations around the world.
In May, Microsoft told Bloomberg it was slowing hiring for its Office, Windows and Teams groups to better prepare for the upcoming fiscal year and weather the current economic environment. The Redmond-based tech giant posted strong third-quarter earnings, with a 26% year-over-year increase in cloud revenue, but in early June the company revised down its forecast for revenue and earnings for the fourth quarter, citing the impact of currency fluctuations. The tech giant has 181,000 employees.
Last month, Netflix confirmed it would be cutting around 150 of the streaming giant’s 11,000 employees in a bid to cut costs amid slowing revenue growth. “These changes are primarily driven by business needs rather than individual performance, which makes them particularly challenging as none of us want to say goodbye to such great colleagues,” a spokesperson said. from Netflix in a statement. Netflix has approximately 11,300 employees.
The ride-sharing company said it would slow hiring and cut costs, although it promised there would be no layoffs. “It’s clear from our discussions with other business leaders that every company is carefully considering how it responds to concerns about an economic downturn and dramatically shifting investor sentiment,” Lyft Chairman John Zimmer wrote. , in an internal post reviewed by The Wall. Street newspaper. Lyft currently has approximately 4,791 employees.
Snap recently warned that it will miss its revenue targets and is aiming to cut costs. Snapchat’s parent company regrets slowing down hiring. “Going forward, we will take steps to redefine our investment priorities – continuing to invest in our business priorities, but in many cases at a slower pace than expected given the operating environment,” wrote CEO Evan Spiegel in an internal memo. to employees in May. The social media company has 5,661 employees.
Also in May, e-commerce giant Wayfair announced a 90-day hiring freeze citing macro uncertainty. In a statement to Yahoo Finance, the e-commerce platform said: “We are pleased that typical seasonal sales patterns are taking hold, but we are seeing a great deal of uncertainty in the overall economy and believe it is prudent. to make some adjustments that allow us to control our own destiny The company employs 16,681 people.
In early May, Uber CEO Dara Khosrowshahi said the ride-sharing company would cut hiring and cut costs. “The least effective marketing and incentive spend will be cut. We will treat hiring as a privilege and deliberately determine when and where we add staff,” Khosrowshahi said in an email seen by Reuters. The company employs 29,300 people.
Online used-car retailer Carvana recently laid off 12% of its workforce, or 2,500 employees. The startup fired several of its employees following a Zoom call. “Recent macroeconomic factors have pushed the automotive retail business into recession,” the company said. “While Carvana continues to grow, our growth is slower than we initially expected in 2022, and we have made the difficult decision to reduce the size of some operational teams to better align with the current business needs. company.” The company employs 21,000 people.
In May, Twitter froze hiring and said it would scoop up some job offers ahead of a buyout offer from Musk. The social media company also cut costs such as travel, consulting and marketing, according to the memo. Twitter employs approximately 7,500 employees.
Meta is limiting its recruitment of new employees in an effort to cut costs due to low revenue forecasts. Facebook’s parent company is suspending or slowing hiring for most mid- to senior-level positions after announcing a metaverse expansion strategy. The social media giant has 71,970 employees worldwide.
While Apple isn’t making changes at the corporate level, Bloomberg reports that the company is slowing the hiring of employees at its outlets. Specifically, the iPhone maker is holding back from filling positions for some of its Genius tech support roles at retail stores. Recently, Bloomberg reported that Apple will keep iPhone order numbers steady year over year. The tech giant employs 154,000 people worldwide.
Robinhood Markets (HOOD)
In April, popular investing app Robinhood announced it would cut about 9% of its full-time workforce following a wave of massive hiring. “As you know, throughout 2020 and the first half of 2021, we went through a period of hyper growth accelerated by several factors, including pandemic lockdowns, low interest rates and fiscal stimulus,” CEO Vlad Tenev told employees in a blog post. The brokerage platform employs 3,800 full-time people.
The food delivery platform warned staff of a staffing slowdown in April. Doordash grew to 8,600 employees last year, an increase of more than 50%. The company reportedly aims to reduce its numbers this year to anywhere between 10% and 15%. DoorDash employs 8,600 people.
In February, Peloton announced it would cut 2,800 jobs as part of an overhaul of its strategy. The manufacturer of connected fitness equipment has announced the departure of its CEO John Foley after a difficult quarter and a slowdown in demand. The company has 8,662 full-time employees.
Ines is an equity market reporter. Follow her on Twitter at @ines_ferre
Dan Howley is a technical reporter for Yahoo Finance. Follow him on Twitter @DanielHowley
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