The news that Tesla will lay off more than 10,000 people around the world has attracted global attention. In fact, not only Tesla, but also American technology giants have slowed down recruitment or layoffs on a large scale this year.
Last Friday, Musk said in an internal email to company executives that he would suspend global recruitment and lay off 10% of the workforce. According to Tesla’s annual report, by the end of 2021, the company has about 100,000 employees worldwide, and a 10% layoff means that At least 10,000 people are about to lose their jobs.
This is not an isolated case. On the same day, Coinbase, the first large-scale digital currency exchange listed on the U.S. stock market, also announced that recruitment will be suspended for a period of time in the future, and all offers just issued will be withdrawn. This has a greater impact on job seekers. They may have rejected other offers in order to accept this offer, and now they are suddenly rejected, and they have to start looking for jobs again.
Coinbase said the decision was made taking into account current market conditions, with bitcoin prices down more than 55% from their all-time highs in November last year, while other cryptocurrencies have fallen even more. Central banks such as the Federal Reserve are tightening monetary policy, leading to a sell-off in risky assets.
The number of full-time employees at Coinbase has ballooned to nearly 5,000 from about 1,700 a year ago. Driven by this, the company’s total operating costs in the first quarter reached $1.7 billion, up 9% sequentially.
Microsoft said in an internal email that it would slow the pace of new hires in its Windows, Office and Teams divisions, saying the slowdown was due to a shift in staffing priorities and uncertainty related to the global economy. .
Meta, the parent company of Facebook, also announced a sharp slowdown in hiring. A Meta spokesperson said in a statement that the company will periodically reassess its talent pool based on business needs, and will slow the growth of its talent pool accordingly based on spending expectations given this fiscal year. speed, but the company will continue to add staff to ensure focus on the long-term impact. Specifically, Meta will suspend hiring for more mid-level and senior-level positions.
Earlier in April, Netflix’s first-quarter 2022 financial report showed that the number of paid users on the platform decreased by 200,000 in the quarter, which was the first decline in the number of Netflix subscribers in 10 years. The company immediately decided to lay off 150 employees, which is close to 2% of the company’s total workforce, most of which are located in the United States.
According to incomplete statistics, in May this year, the US technology industry laid off nearly 160,000 employees, and the number of layoff companies reached 37. Both the number of layoffs and the number of companies exceeded the sum of the first four months of this year. Just after the first week of June, 15 companies have already announced layoffs.
According to investor statistics, the words “hiring freeze” that appeared in Bloomberg News reports also hit a new high in May since July 2020.
The main reason for these companies laying off workers is the sluggish economy, scaling back expenses to deal with more uncertainty that may arise in the future. Musk, for example, said that he feels bad about the U.S. economy, and JPMorgan Chase CEO Jamie Dimon also said at a public meeting that a big storm is coming for us. Goldman Sachs Chairman John Waldron also warned that the current global economic environment is the most complex and uncertain of his career.
edit/emily
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