Wave of layoffs and hiring freeze at the Tech giants

The technology sector is preparing to do the big back for several months. Everyone has their own tactic to protect themselves from a major economic slowdown.

The current cocktail of recession, inflation, war in Ukraine and tension in Taiwan has the Tech giants fearing the worst. In order not to drink the cup, they tighten their belts. Hiring freeze, withdrawn job offers and layoffs are on the agenda of the big players in the sector. Amazon was one of the first companies to speak out on the subject during its quarterly results last week, saying it had created the slowest rate of job creation since 2019.

Simply by not replacing departed staff, Amazon already has 100,000 fewer employees than in the previous quarter. After considering itself overstaffed, the e-commerce giant has cleaned up and reviewed its internal logistics. Amazon has sublet some warehouse space and suspended development of facilities for office workers. The company now has 1.52 million full-time and part-time employees and remains the largest employer in the tech world, despite downsizing.

Not immune to economic headwinds

More discreet on the subject but no less important in the sector, Alphabet, the parent company of Google has greatly slowed down its recruitment efforts for several weeks. In the second quarter, it hired another 10,000 people to join its various offices around the world, but this will no longer be the case for the rest of the year, according to Sundar Pichai, Alphabet’s CEO: “Like all companies, we are not immune to the headwinds of the economy.”



“Like all businesses, we are not immune to the headwinds of the economy.”

Sundar Pichai

CEO of Alphabet (Google)

At Apple, the story is different. Admittedly, the Apple brand intends to slow down its hiring and better control the expenses of certain divisions to deal with the economic slowdown, but there is no question of slowing down the overall pace of the company. No change in the release schedule of its products and no layoffs among its 154,000 employees.

With its 78,000 employees, Meta, the parent company of Facebook, is far from being one of the largest employers in the sector. But Mark Zuckerberg’s company is no exception to the wave of concern and has cut plans to hire engineers by at least 30%. Mark Zuckerberg has told his employees that he predicts one of the worst economic downturns in recent history. Ditto at Microsoft which has yet seen others since its launch. Slowing down hiring, cutting just under one percent of its total employees, and removing advertised job vacancies.

70

millions of dollars

Netflix had to shell out $70 million in severance pay over the past three months.

Netflix pays dearly for its layoffs

Finally, Netflix, which has already experienced several waves of layoffs in recent years, has still laid off 150 people in May and 300 in June. Layoffs that cost him dearly: $70 million in compensation for the last three months. The sector is preparing for the worst and to back down. The situation in Taiwanthe territory that supplies the majority of semiconductors to the sector, could lead these companies to take even more drastic measures.

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