Companies across the board have reduced their personnel due to the global slowdown and looming recessionary risks. In August 2022 alone, more than 60 prestigious organisations announced layoffs, according to GlobalData’s news database. The large tech corporations, including Microsoft, Apple, Tencent, Xiaomi, and Snap, sacked staff as uncertain macroeconomic conditions threatened to harm the firms’ financial accounts.
But according to analysts, things are just getting started. The study’s author, Sherla Sriprada, mentioned Microsoft as an example of a corporation that was preparing further layoffs. GlobalData released the research. ‘ Of particular note is Microsoft, which has already laid off 1% of its workers as a result of the economic downturn and has plans to lay off an additional 200 employees from its consumer research and development (R&D) team as part of its organisational restructure. Compared to January 2022, the company’s job advertisements decreased by 47% in August’, Sriprada added.
According to WION, a number of well-known companies have recently made the fairly abrupt decision to fire their staff. 10,000 employees were reportedly let go by Alibaba in China as part of cost-cutting initiatives, as well as as a result of sluggish sales growth and increased costs. Tencent, the shining star of China’s burgeoning internet industry, revealed a downturn in revenue for the first time this year and immediately lay off more than 5,500 workers.
In the meanwhile, Coinbase Global Inc said that in order to address the present macroeconomic situation, company will prolong its employment freeze for the foreseeable future and withdraw a number of accepted offers. Similar to Facebook, Meta (previously) has stopped hiring for a number of industries, including commerce and Messenger Kids, which has caused staff dread of layoffs. ‘ I can’t sit here and always guarantee that when circumstances change, we won’t have to reevaluate that (job losses)’, Zuckerberg said.
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 cutbacks. With less resources than previously, ‘we want to make sure as a firm, you are prioritising all the correct things to be working on and your people are very productive so they can really have an influence on the things they’re working on so that’s what we are focusing our time on,’ added Pichai.
Similar to this, the world’s largest bank, Goldman Sachs, plans to let go hundreds of workers by starting its yearly practise again after ceasing it the previous two years owing to the epidemic. According to experts, Goldman Sachs may fire up to 5% of its underperformers. A loss of 500 to 2,400 workers is the result of this.
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