Due to rising inflation, recession fears and uncertain economic conditions, recruitment and job postings at top tech companies fell by 84% in November, compared to January.
This is according to a report by data and analytics company GlobalData, which notes job posts at the world’s biggest technology companies closed faster than new hiring positions were opened last month.
According to the report, job postings at Meta (formerly Facebook), Apple, Amazon, Netflix, Microsoft and Alphabet (Google) – also known as FAAMNG, the six most successful tech companies in the world − fell significantly last month, as they moved to retrench or freeze their recruitment.
Last month, Meta CEO Mark Zuckerbergannouncedhis decision to reduce the staff complement by about 13%.
In an e-mail sent to staff, he explained: “We are also taking a number of additional steps to become a leaner and more efficient company by cutting discretionary spending and extending our hiring freeze through 1Q 2023.
“I want to take accountability for these decisions and for how we got here. I know this is tough for everyone, and I’m especially sorry to those impacted.”
According to GlobalData, Amazon may lay off 20 000 employees in the coming months. Job postings by Amazon decreased by 68% in November, compared to the previous month.
Meanwhile, Microsoft laid off 1 000 employees as a part of its restructuring business plans in October, says the research firm.
Sherla Sriprada, analyst at GlobalData, comments: “As a part of an increasingly difficult business environment, IT players are announcing layoffs, hiring freezes and restructuring plans.
“In November, Meta announced it would lay off 11 000 employees and we also noticed a drastic fall in its hiring activity in the same month. Job postings by Meta decreased by 92% in November compared to the previous month.”
GlobalData also researched the impact of slowdowns in hiring activity on different geographical regions. Its research found that despite layoffs, Netflix’s job postings rose in the Asia-Pacific region in November, while Microsoft’s postings increased in the Middle East and Africa. In Europe, job postings by Alphabet and Netflix remained constant.
Last month, Beth Galetti, senior VP of people experience and technology at Amazon, announced in a statement that the organisation is pausing hiring for new positions in its corporate workforce for the next few months, in response to the current “economic uncertainty”.
“We’re facing an unusual macro-economic environment, and want to balance our hiring and investments with being thoughtful about this economy…With fewer people to hire this moment, this should give each team an opportunity to further prioritise what matters most to customers and the business, and to be more productive,” she noted.
Galetti pointed out the company still intends to hire a meaningful number of people in 2023, and remains excited about its significant investments in the larger businesses, as well as newer initiatives like Prime Video, Alexa, Grocery, Kuiper, Zoox and healthcare.
In May, Netflix announced plans to lay off 300 employees in the US and Canada, in a second round of job cuts, after the streaming giant announced the retrenchment of 150 staff members in April, according to Reuters.
The job cuts came after Netflix reported its first loss of subscribers in more than a decade amid fierce competition, and forecast deeper losses in the coming quarter. The company said the war in Ukraine had also contributed to the loss of customers.
According to Forbes, Google owner Alphabet is looking to lay off 10 000 poor-performing employees after the company’s investor called for the internet giant to retrench staff.
The decision came after Alphabet introduced a new approach called Googler Reviews and Development, which seeks to track employee development and progression throughout the year.
In early November, Twitter reportedly laid off half its workforce. At the time, its new owner, Elon Musk, tweeted: "Unfortunately, there is no choice when the company is losing over $4M/day.”
As the tech industry trimmed its workforce, companies in other industries saw opportunity.
“Massive job cuts at technology firms are doing the rounds in the media. Jaguar Land Rover announced the launch of a new jobs portal for displaced employees from technology companies, such as Meta and Twitter, to explore career opportunities and offering hybrid working patterns,” Sriprada commented.
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