Due to rising interest rates, reducing consumer spending and slowdowns around the world, many tech companies have stopped hiring. Tech companies in the US have laid off more than 45,000 workers. Some companies have reported a reduction in jobs and others a moratorium on hiring.
Many of these companies had grown significantly due to the boom in online spending during the pandemic. Senior executives of these companies say that they had over-hired. Hard drive maker Seagate Technology last month announced an 8 percent reduction in its workforce. The company had given reasons for this like uncertain economic situation and low demand for its parts. Seagate CEO, Dave Mosley had said that customers have excess inventory and this is affecting orders.
Global chipmaker Intel is slashing jobs as well as spending on new plants to save $3 billion next year. Due to low demand for personal computers, orders for the company’s chips have decreased and due to this the staff has also been cut. The effect of retrenchment in the company will be more on the sales and marketing teams. Microsoft, one of the big software companies, has told that due to the possibility of reducing its revenue, additional workers have been removed. Sales of the company’s Windows licenses have decreased and this could also reduce revenue.
Micro-blogging site Twitter has laid off almost half of its workforce. Major changes are being made in the company after Elon Musk, the world’s richest man, bought Twitter. These include reducing the workforce and charging around $8 per month for Twitter Blue. Many companies have also stopped advertising on Twitter and this can have a big impact on the company’s revenue. American crypto exchange Coinbase has laid off about 18 percent of its staff, citing the slowdown as the reason. Apart from this, companies like Netflix, Snap and Shopify are also planning to reduce their workforce.