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Companies cut jobs, freeze hiring to prepare for economic slowdown

Company name Date Layoffs impact Commentary Alibaba Group March 16 About 39,000 staff Started firing employees in February.

Growth in the world's largest economy, the United States, shrank for the second straight quarter, while in the eurozone business growth slowed sharply in June due to the rising cost of living.
Growth in the world's largest economy, the United States, shrank for the second straight quarter, while in the eurozone business growth slowed sharply in June due to the rising cost of living.

Technology companies, crypto exchanges, and financial firms are cutting jobs and slowing hiring as global economic growth slows due to higher interest rates, red-hot inflation, and an energy crisis in Europe. In a sign of a tough second half of the year, growth in the world’s largest economy, the United States, shrank for the second straight quarter, while in the eurozone business growth slowed sharply in June due to the rising cost of living. 

Company name Date Layoffs impact Commentary Alibaba Group March 16, about 39,000 staff Started firing employees in February. It discussed job cuts with several business units that month and left it to them to make specific plans, a source told Reuters. 

Tencent Holdings March 16, 10%-15% headcount in an internal meeting at Tencent at the end of 2021, CEO Pony Ma told staff the company should prepare for a “winter”, two sources told Reuters. 

Tesla Inc June 3 Roughly 10% in “I have a super bad feeling about the economy,” CEO Elon salaried staff Musk said in emails seen by Reuters. JPMorgan Chase and June 22 Over 1,000 “Our staffing decision this week was a result of cyclical Co employees changes in the mortgage market,” a spokesperson said. 

Shopify Inc July 26 10% of its “Ultimately, placing this bet was my call to make and I workforce got this wrong,” CEO Tobi Lutke said, referring to a bet on post-pandemic growth in online shopping that went sour. Netflix May 17 150 jobs “While we continue to invest significantly in the June 23 300 jobs business, we made these adjustments so that our costs are growing in line with our slower revenue growth,” the company said. 

Coinbase Global June 14 1,100 jobs “We appear to be entering a recession after a 10+ year Inc economic boom. A recession could lead to another crypto winter, and could last for an extended period,” CEO Brian Armstrong said. 

OpenSea July 14 20% of its “The reality is that we have entered an unprecedented workforce combination of a crypto winter and broad macroeconomic instability, and we need to prepare the company for the possibility of a prolonged downturn,” CEO Devin Finzer said. 

Klarna May 23, 10% of its “Since then (2021), we have seen a tragic and unnecessary workforce war in Ukraine unfold, a shift in consumer sentiment, a steep increase in inflation, a highly volatile stock market and a likely recession,” CEO Sebastian Siemiatkowski said. Robinhood April 26 9% of its “Rapid headcount growth has led to some duplicate roles Markets Inc full-time and job functions, and more layers and complexity than are employees optimal,” CEO Vlad Tenev said. 

August 2, 23% of its full-time “Earlier this year, I announced that we would be letting employees go of 9% of our workforce and focusing on greater cost discipline throughout the organization. This did not go far enough,” Tenev said. Oracle Corp August 1, “Thousands” of Starts to cut “thousands” of jobs globally to achieve $1 jobs in global billion in cost savings, a report in The Information said. workforce Regions affected include the United States, Canada, India and parts of Europe. 

Company name Date Action taken Commentary Apple Inc July 18 To slow hiring, The decision stems from a move to be more careful during spending next year uncertain times, though it is not a company-wide policy, in some units Bloomberg News reported, citing sources. 

Meta Platforms, June 30, Cut plans to hire “If I had to bet, I’d say that this might be one of the Inc engineers by at worst downturns that we’ve seen in recent history,” CEO least 30% to Mark Zuckerberg told workers in a weekly employee Q&A ~6,000-7,000 session, audio of which was heard by Reuters. 

Twitter Inc, May 12, To pause most CEO Parag Agrawal, in a memo to employees seen by Reuters, hiring, review attributed the decision in part to a lack of confidence in existing job Twitter’s ability to reach aggressive growth targets it had offers to see if set in 2020. any “should be pulled back” Uber May 9 To scale back “We will treat hiring as a privilege and be deliberate Technologies Inc hiring, reduce about when and where we add headcount,” CEO Dara spending on Khosrowshahi said in a letter seen by Reuters.

Marketing, incentives Snap Inc May 23 To slow hiring and “We continue to face rising inflation and interest rates, push some planned supply chain shortages and labor disruptions, platform hiring to 2023 policy changes, the impact of the war in Ukraine, and more,” CEO Evan Spiegel said in a memo to employees.

Amazon.com Inc, July 28, Company is questioning its hiring plans, likely will not hire at same pace as in previous years Intel Corp June 8 Froze hiring in the division responsible for PC desktop and laptop chips.

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