Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Factbox-Companies cut jobs, freeze hiring to prepare for economic slowdown

Economy Aug 03, 2022 06:15AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: A man walks past a logo of Alibaba Group at its office building in Beijing, China August 9, 2021. REUTERS/Tingshu Wang

(Reuters) - Technology companies, crypto exchanges and financial firms are cutting jobs and slowing hiring as global economic growth slows due to higher interest rates, red-hot inflation and an energy crisis in Europe.

In a sign of a tough second half of the year, growth in the world's largest economy, the United States, shrank for the second straight quarter, while in the euro zone business growth slowed sharply in June due to rising cost of living.


Company name Date Layoffs impact Commentary

Alibaba (NYSE:BABA) Group March 16 About 39,000 staff Started firing employees in February. It discussed job

cuts with several business units that month and left it to

them to make specific plans, a source told Reuters.

Tencent Holdings (OTC:TCEHY) March 16 10%-15% headcount In an internal meeting at Tencent at the end of 2021, CEO

Pony Ma told staff the company should prepare for a

"winter", two sources told Reuters.

Tesla (NASDAQ:TSLA) Inc June 3 Roughly 10% in "I have a super bad feeling about the economy," CEO Elon

salaried staff Musk said in emails seen by Reuters.

JPMorgan Chase (NYSE:JPM) & June 22 Over 1,000 "Our staffing decision this week was a result of cyclical

Co employees changes in the mortgage market," a spokesperson said.

Shopify (NYSE:SHOP) Inc July 26 10% of its "Ultimately, placing this bet was my call to make and I

workforce got this wrong," CEO Tobi Lutke said, referring to a bet

on post-pandemic growth in online shopping that went sour.

Netflix (NASDAQ:NFLX) May 17 150 jobs "While we continue to invest significantly in the

June 23 300 jobs business, we made these adjustments so that our costs are

growing in line with our slower revenue growth," the

company said.

Coinbase (NASDAQ:COIN) Global June 14 1,100 jobs "We appear to be entering a recession after a 10+ year

Inc economic boom. A recession could lead to another crypto

winter, and could last for an extended period," CEO Brian

Armstrong said.

OpenSea July 14 20% of its "The reality is that we have entered an unprecedented

workforce combination of a crypto winter and broad macroeconomic

instability, and we need to prepare the company for the

possibility of a prolonged downturn," CEO Devin Finzer


Klarna May 23 10% of its "Since then (2021), we have seen a tragic and unnecessary

workforce war in Ukraine unfold, a shift in consumer sentiment, a

steep increase in inflation, a highly volatile stock

market and a likely recession," CEO Sebastian

Siemiatkowski said.

Robinhood (NASDAQ:HOOD) April 26 9% of its "Rapid headcount growth has led to some duplicate roles

Markets Inc full-time and job functions, and more layers and complexity than are

employees optimal," CEO Vlad Tenev said.


2 23% of

its full-time "Earlier this year, I announced that we would

employees be letting go of 9% of our workforce and focusing on

greater cost discipline throughout the organization. This

did not go far enough," Tenev said.

Oracle Corp (NYSE:ORCL) August 1 "Thousands" of Starts to cut "thousands" of jobs globally to achieve $1

jobs in global billion in cost savings, a report in The Information said.

workforce Regions affected include the United States, Canada, India

and parts of Europe.


Company name Date Action taken Commentary

Apple Inc (NASDAQ:AAPL) July 18 To slow hiring, The decision stems from a move to be more careful during

spending next year uncertain times, though it is not a company-wide policy,

in some units Bloomberg News reported, citing sources.

Meta Platforms June 30 Cut plans to hire "If I had to bet, I'd say that this might be one of the

Inc engineers by at worst downturns that we've seen in recent history," CEO

least 30% to Mark Zuckerberg told workers in a weekly employee Q&A

~6,000-7,000 session, audio of which was heard by Reuters.

Twitter Inc (NYSE:TWTR) May 12 To pause most CEO Parag Agrawal, in a memo to employees seen by Reuters,

hiring, review attributed the decision in part to a lack of confidence in

existing job Twitter's ability to reach aggressive growth targets it had

offers to see if set in 2020.

any "should be

pulled back"

Uber (NYSE:UBER) May 9 To scale back "We will treat hiring as a privilege and be deliberate

Technologies Inc hiring, reduce about when and where we add headcount," CEO Dara

spending on Khosrowshahi said in a letter seen by Reuters.



Snap Inc (NYSE:SNAP) May 23 To slow hiring and "We continue to face rising inflation and interest rates,

push some planned supply chain shortages and labor disruptions, platform

hiring to 2023 policy changes, the impact of the war in Ukraine, and

more," CEO Evan Spiegel said in a memo to employees. Inc (NASDAQ:AMZN) July 28 Company is

questioning its

hiring plans,

likely will not

hire at same pace

as in previous


Intel Corp (NASDAQ:INTC) June 8 Froze hiring in

the division

responsible for PC

desktop and laptop


Source: Company filings, media reports

Factbox-Companies cut jobs, freeze hiring to prepare for economic slowdown

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email