Companies across the board have laid off their employees due to the global slowdown and looming recessionary risks. In August 2022 alone, more than 60 prestigious organizations announced layoffs, according to Global Data’s news database. (yellowtail.tech)
The large tech corporations, including Microsoft, Apple, Tencent, Xiaomi, and Snap, sacked staff as uncertain macroeconomic conditions threatened to harm the companies’ financial accounts.
The worst, according to experts, is still to come. Sherla Sriprada, a business fundamentals analyst at GlobalData, the organization that released the study, used Microsoft as an example and discussed how it was preparing to make additional cuts.
10,000 workers were reportedly let go by Alibaba in China
“Of particular interest is Microsoft, which has planned to fire an additional 200 employees from its consumer research and development (R&D) team as part of its restructuring strategy after cutting 1% of its overall employment as a result of the economic downturn. When compared to January 2022, the company’s job ads decreased by 47%, according to Sriprada.
10,000 workers were reportedly let go by Alibaba in China as part of cost-cutting measures, as well as as a result of sluggish sales growth and increased costs.
Tencent, the shining star of China’s growing digital industry, announced a sales slowdown for the first time this year and immediately laid off more than 5,500 workers.
In the meantime, Coinbase Global Inc announced that in order to address the present macroeconomic situation, the company would prolong its employment freeze for the foreseeable future and withdraw a number of accepted offers.
Meta has paused hiring for a number of verticles
Similarly, Meta (formerly Facebook) has paused hiring for a number of verticles, including commerce and Messenger Kids.
“I can’t sit here and perpetually guarantee that when circumstances change, we won’t have to reevaluate that (job losses),” Zuckerberg told the staff during a meeting.
Earlier this month, Sundar Pichai, the CEO of Google and Alphabet, said he wanted to increase his company’s efficiency by 20% while making hints about potential job cuts.
Goldman Sachs may fire one to five percent of its underperforming staff
“We want to make sure as a company when you have fewer resources than before, you are prioritizing all the right things to be working on and your employees are really productive that they can actually have an impact on the things they’re working on so that’s what we are spending our time on,” said Pichai.
Similar to this, the world’s largest bank, Goldman Sachs, plans to let go hundreds of staff members by starting its annual practice again after ceasing it the previous two years owing to the epidemic.
According to experts, Goldman Sachs may fire one to five percent of its underperforming staff. This will result in the loss of 500 to 2,400 workers.