Some tech companies hit the break button when hiring

Salesforce is clearly the latest firm to break with hiring because hiring refrigeration and layoff reports affect technology workers. Twitter, Meta and Uber are among the hiring agencies for various reasons in recent weeks amid rising inflation and ongoing stock market sell-off.

“Since the epidemic began, companies have accelerated their digital transformation to support new ways of working and reaching customers,” said Jamie Cohen, research director at Gartner’s HR practice. “Technology companies are at the heart of it. Now, they are taking a step back to re-evaluate what they need for future growth. Therefore, these freezes are probably short-term breaks. “

The stagnation in large technical companies contrasts with the larger employment environment for technical workers, including the continuing shortage of talent.

“Outside of the technology industry, the demand for technological roles is still very high,” Cohen said. “Many companies are still struggling to find the talent they need to support their growing technological needs. Technicians still have a lot of options in the job market, even if they are not in the big tech companies. “

Cloud software vendor Salesforce will suspend hiring for some open roles in an effort to control costs, according to a Internal memo seen by Business Insider. Some corporate travel and company offsites will also be canceled, according to Wednesday’s report. (In a statement, Salesforce said it still plans to hire 4,000 employees this quarter.)

According to Meta, which owns Facebook, plans to close new hires for some engineering roles Edge, Which received a recording of an internal all-hand meeting at the company. At the start of the Covid-19 epidemic, the submission was made following a decision to cut costs in certain areas, including creating video and audio calling features and new shopping features to compete with Zoom.

The company had previously said it intends to stop hiring employees in its engineering department for the remainder of 2022, according to a company memo. Business Insider Earlier this month. Meta CFO David Wehner cited the “industry-wide” recession as a reason for the decision, as well as the invasion of Ukraine and changes in data-privacy.

Details of the recruitment submission also surfaced on Twitter last week, as the social media company is preparing for Elon Musk’s $ 44 billion takeover, although the layoffs are not currently planned, according to an insider’s email. Edge. The company also fired senior exec Kevin Bekpur, former consumer goods leader and revenue chief Bruce Falk. It is alleged that Musk proposed to reduce the number of primary jobs on his pitch to raise funds for the company’s acquisition before raising the headcount in the following years.

And on Tuesday, Coinbase, a cryptocurrency exchange platform, announced that it would aggressively withdraw from recruitment plans this year due to the recent market downturn.

“Going forward this year, we plan to triple the size of the company,” said Emily Choi, president and COO of Coinbase, in a blog post. “Given the current market conditions, we think it is prudent to gradually assign and re-evaluate our headcount needs, in line with our highest-priority business goals.”

Uber CEO Dara Khosrowshahi has also announced plans to cut staff costs and consider hiring a special benefit, and we’ve deliberately looked at when and where to add headcount, according to an email from. CNBC Last week. Khasroshahi referred to a “seismic change” in market conditions.

Although the reasons for the slowdown are shifting from firm to firm, many are cautious in light of the macroeconomic situation and the forecast of a recession later this year, said Jack Gold, founder and chief analyst at Jay Gold Associates, LLC.

“Since these are public companies, they have to play the ‘How I Made This Quarter’ game, and stockholders pay close attention to costs when sales can’t grow.” So that’s a big part of the hiring situation, “he said.

At the same time, he said, many large technology companies have hired a significant number of new staff over the past year or two because of “increased sales and hot markets.”

“So it’s not surprising that they can be slow to recruit to be able to fully exploit new employees in the organization,” he said. “It takes six to 12 months for new employees to be fully productive in a new job.”

Other technology companies have stepped forward and decided to cut jobs. In the face of declining subscriptions, Netflix is ​​cutting 150 employees, accounting for 2% of its U.S. workforce, as well as 70 part-time roles. Diversity.

Online trading platform Robinhood laid off its employees by 10% in April, while collaboration software vendor Mural and online car dealership Carvana, among others, have recently reduced headcounts. According to layoff tracker site, more than 80 technology companies have laid off employees since the beginning of the year.

Copyright © 2022 IDG Communications, Inc.

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