Uber CEO Dara Khosrowshahi told employees over the weekend that the company would start treating hiring "like a privilege." Other companies, including Facebook parent company Meta, have also cut hiring. Netflix and Robinhood are all up to start licensing employees.
Volatile benefits from big tech companies weighed negatively on stock prices. The Nasdaq index was up 3.3% in morning trading as investors continued the exodus from tech stocks that began last month. The index is at a low of 30% after December.
The United States added 431,000 new workers in April, according to the Labor Department's latest jobs report, despite early forecasts that put the number of new workers at around 400,000.
Reviews: - original sites for browse Tech companies are slowing hiring or announcing layoffs. Is this the beginning of a cooler job market around this website?
But due to skyrocketing inflation, the Federal Reserve has been steadily raising interest rates for months, driving up borrowing costs. Named experts and analysts on my guard against an impending recession. It could end the so-called Great Quit that has seen Americans leave their jobs in large numbers.
"It's a time to take advantage of the labor market and the most tends to be for workers who don't guarantee these conditions will persist," Daniel Zhao, chief economist at Glassdoor placement profession, told CNBC. last week.
Technology industry refresh
Ride-sharing giant Uber Technologies is the latest of the more tech companies to announce more conservative and selective hiring practices as the company's business outlook changes.
Khosrowshahi said the slowdown in hiring is a response to a "seismic shift" that left him. He does not rule out the possibility of a license, as Uber does not prevent him from passing.
Uber is just the latest tech giant to cut hiring.
Facebook's company, Meta, announced the week before it would start or receive embarrassment for the majority of mid- and senior-level positions in the company. The announcement comes as the Meta report of falling revenue and the focus on it is reported on quarterly results released in late April, which also revealed more than $3 million in assets for the company's activity. Metaverse Reality Labs.
Several tech companies posted similarly disappointing returns in their first-quarter reports, with some going so far as to announce big layoffs.
On April 26, digital brokerage app Robinhood announced it had exceeded 9% of its effects, after the company's effects had grown from about 700 employees in 2019 to 3,800 by the end of 2021.
Streaming manager Netflix is being let go by the dozens of employees at its brand new editorial companion site Tudum at the end of April, just months after a wave of hiring to build the site. The licenses are pending ahead of when the company's shares began to soar after the announcement of the $200,000 first-quarter payout.
Reality captures technology
Most of the tech companies that have said they will cut hiring or start layoffs have one thing in common: they have all seen a massive shift in the market, as the decline in tech stocks in the early months of 2022 has applied losses of $17 billion. . for technology companies.
There are reasons why the tightening of the belt could have a particularly heavy impact on technology.
Tech companies are built to catch a beat during the pandemic as many workers were stuck at home and demand for products like games, phones, cloud services and digital subscriptions soared. As people begin to leave their homes more, these trends are changing.
More factors indicate that higher interest rates and fears of a pullback could apply to other industries as well. And in a time of economic uncertainty, job shifting and job displacement may be a thing of the past.
A report from the Peterson Institute for International Economics found that hourly wage increases for employees who are new to many are larger this year than in 2021, leading researchers to write that if this continues.
