A global slowdown and looming recession fears have prompted businesses at all levels to downsize. According to GlobalData’s news database, more than 60 major companies announced layoffs in August 2022 alone.
From Microsoft and Apple to Tencent, Xiaomi and Snap, tech giants have laid off employees as uncertain macro conditions threatened to hurt companies’ financial books.
However, experts believe the worst is yet to come. Sherla Sriprada, a business fundamentals analyst at GlobalData, which published the report, cited the example of Microsoft and how the company also foresees future cuts.
Of particular interest is Microsoft, which has laid off 1% of its total workforce due to the economic downturn, and plans to lay off another 200 employees from its consumer research and development (R&D) team as part of its realignment. job postings fell 47% in August 2022 compared to January 2022,” Sriprada said.
As WION reports, there has been no shortage of big names taking the rather cold call to lay off their employees lately.
Alibaba in China has reportedly laid off 10,000 employees as part of cost-cutting measures and due to slowing sales growth and rising prices.
Tencent, the crown jewel of China’s booming tech sector, reported slowing sales for the first time this year and immediately laid off more than 5,500 employees.
Meanwhile, Coinbase Global Inc said it will extend its hiring freeze for the foreseeable future and cancel a number of accepted offers in order to deal with current macro conditions.
Similarly, Meta (formerly Facebook) suspended hiring in several verticals, such as shopping and Messenger Kids, raising fears of layoffs among employees.
“I can’t sit here and make a standing promise that as things change we won’t have to reconsider this (job cuts),” Zuckerberg told staff in a meeting.
Read more: From Tesla to Peloton, companies slow hiring as US economy slumps
Google and Alphabet CEO Sundar Pichai said earlier this month he wanted to make his business 20% efficient while hinting at possible job cuts.
“We want to make sure that as a company, when you have fewer resources than before, you prioritize all the good things to work on and that your people are really productive that they can actually make an impact. about the things they’re working on so that’s what we’re spending our time on,” Pichai said.
Read more: Sundar Pichai hints at Google downsizing, wants company to be 20% more efficient
Similarly, major bank Goldman Sachs plans to lay off hundreds of its employees as it resumes its annual practice which has been halted for the past two years due to the pandemic.
Experts believe that Goldman Sachs could amputate up to 1-5% of its underperforming employees. This will mean losing between 500 and 2,400 employees.
Read more: Goldman Sachs to start laying off employees from next week amid economic downturn
(With agency contributions)
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