While pessimism in the global economic outlook forced international companies to cut costs, many companies in the US and Europe accelerated layoffs.
While pessimism in the global economic outlook forced international companies to cut costs, many companies in the US and Europe accelerated layoffs.
While the high inflation associated with the rapid economic recovery from the Covid-19 epidemic, rising interest rates and the escalating energy crisis with the Russia-Ukraine war slowed the global economy, many companies in the US and Europe announced downsizing or repurchase break.
BRAKE IN JOB PURCHASES
In the face of global economic uncertainties, companies must take action to reduce costs and curb job purchases.
Rising inflation and deteriorating macroeconomic prospects around the world are forcing all technology companies to adapt to the new climate.
At a time when interest rates are rising after years of investing heavily in tech companies, big funds’ risk appetite is falling due to the negative economic outlook.
Combined with the impact of the Russia-Ukraine war, supply chain disruptions and high inflation, companies are making difficult decisions.
Companies that have taken austerity measures on fears of recession are trying to stabilize profits, which have been hit by layoffs.
News of gradual layoffs and the suspension of new acquisitions at international companies, particularly large tech companies, are a cause for concern in the global economy.
THE NUMBER OF LAUNCHES IN THE US EXCEEDED 52 THOUSAND
Many companies operating in the technology sector, especially in the US, have decided to reduce the number of employees or to stop hiring.
According to Crunchbase, more than 52,000 tech workers were laid off in the US at the end of October this year.
Experts say many tech companies hired more during the epidemic and are now struggling.
UPDATED IN LYFT AND META
While the list of companies going out of business in the country is growing by the day, it’s worth noting that companies like Twitter, Lyft and Meta have plans to downsize.
Layoffs began at social media company Twitter after Elon Musk’s $44 billion purchase. It has been reported that 50 percent of Twitter employees have been laid off.
Mobile ride-hailing app Lyft has also announced plans to lay off 13 percent of its employees. In a letter to employees on the subject from Lyft co-founders Logan Green and John Zimmer: “There are several challenges emerging in the economy. “We are facing a potential recession over the next year and the cost of carsharing insurance is rising.”
Meta, the owner of Facebook, Instagram and WhatsApp, is reportedly planning massive layoffs. News from the US press said Meta’s layoffs were the first mass layoffs in the company’s 18-year history and would affect thousands of employees.
While Intel, one of the world’s largest microchip makers, is reportedly planning to cut its workforce by 20 percent, Microsoft has been found to have laid off nearly 1,000 employees.
Stripe, the online payments platform, has decided to lay off around 14 percent of its employees. Patrick Collison, Stripe’s chief executive, wrote in a letter to the company’s employees on the subject that layoffs are necessary due to rising inflation, recession fears, higher interest rates, energy shocks and tighter investment budgets.
Online real estate company Opendoor has announced it will lay off 18 percent of its employees as rising interest rates weigh on the US housing market.
In the US, companies like Netflix, Robinhood, Snap, Coinbase, Shopify, Peloton, and Calm have also announced staff cuts.
Netflix has laid off 450 employees, while Peloton has announced that more than 800 will be laid off. In addition, Robinhood said it would reduce headcount by 23 percent, Snapchat by 20 percent, Coinbase by 18 percent, Shopify by 10 percent, Cameo by 25 percent, and Calm by 20 percent.
Elon Musk, the CEO of US electric vehicle maker Tesla, sent an email to the company’s executives in June entitled “Stop all hiring worldwide.” In the email, Musk said he had a “super bad feeling” about the economy and that the workforce should be cut by 10 percent.
DECISION TO STOP AMAZON AND APPLE DISCONTINUING
U.S. e-commerce giant Amazon, on the other hand, announced that it has suspended hiring for its workforce due to the economic outlook.
The company justified the decision with the uncertainty in the economy and the number of employees in recent years.
Beth Galetti, Amazon’s senior vice president of human experience and technology, said in a letter to the company’s employees that the application in question is likely to continue over the next few months and that they will continue to monitor developments in the economy and business world.
Apple has also reportedly decided to stop hiring employees in all areas except research and development.
INCREASINGLY IN EUROPE
With the effects of the highest inflation rates of the last 30 years and the Russia-Ukraine war, layoffs also increased in Europe.
French airline Air France, which has lost thousands of jobs to voluntary redundancies over the past two years, is negotiating with unions to lay off about 300 ground staff.
Swedish engineering group Alfa Laval has announced a restructuring program that will lay off around 500 of its employees after rising costs negatively impacted its maritime business.
Husqvarna, the Swedish maker of gardening equipment and tools, has also announced it will be restructuring and cutting 1,000 jobs.
Sweden-based payments company Klarna announced it would lay off around 10 percent of its 7,000 employees due to high inflation and the negative impact of the war in Ukraine on trade.
TO COMBAT INCREASED COSTS AND LOW DEMAND
German chemicals company BASF announced its plan to cut annual costs in Europe by 500 million euros by 2024, including layoffs, while German consumer goods company Henkel cut 2,000 jobs to counter rising costs and weak demand.
Wind turbine maker Siemens Gamesa announced plans to cut 2,900 jobs, mostly in Europe, as part of its plan to return to profitability.
German automotive and industrial supplier Schaeffler announced that it would lay off a further 1,300 employees by 2026 as part of the restructuring process.
Italy’s third-biggest bank, Monte dei Paschi di Siena, reached an agreement with the union in August to take early retirement from 3,500 employees as part of savings commitments.
Dutch medical device manufacturer Philips has announced that it will cut almost 4,000 jobs after falling sales.
Automaker Stellantis announced it would indefinitely lay off an unspecified number of employees at its Michigan plant to mitigate the impact of various supply chain issues.
Finnair said it will cut around 200 jobs worldwide and downsize its fleet in a bid to restore profitability with the closure of Russian airspace.
Valmet Oyj, headquartered in Finland, announced that it is in negotiations for temporary layoffs of up to 3 months with 340 employees at its Helsinki valve factory due to the drop in orders due to the war in Ukraine and the Covid-19 restrictions in China. (AA)
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