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HomeNEWSTech giants on alert for possible recession • ENTER.CO

Tech giants on alert for possible recession • ENTER.CO

The growing fear of an economic recession put tech giants like Apple, Google, Microsoft, Meta and others on alert. Companies are taking early action to deal with a potential global economic meltdown. Here we tell you what they intend to do.

In recent information published by Bloomberg News and other media, some measures were revealed. Several companies in the US are applying a slow contracting or cost cutting mechanism as an alert mechanism. Unlike the tech giants, the tech unicorns have been more drastic in their measures. Next, we will see a closer look at the largest companies that make this type of advertisement:

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Manzana

The apple company would be thinking of applying a brake to the growth of the hiring of personnel for the following months. Likewise, it was proposed to reduce its operating costs to face uncertain times. However, it transpired that this measure would not be generalized for the entire company and would not affect all teams. This is because in 2023 the company has an ongoing schedule that includes several product launches.

Google

The CEO of Alpahbeth Inc.’s Google, Sundar Pichai, announced to employees in an email that the company would implement a reduction in hiring for the rest of the year. It became known that Google’s hiring efforts would focus on technical and engineering roles. Thus, the internet search giant joined several technology companies in confirming that they are not immune to the economic outlook.

microsoft

It is the only one that has announced a percentage of layoffs that does not even reach 1% of its staff. These layoffs would be to adapt to new organizational structures. However, this has also been the only company to announce an increase in hiring for the year 2023 because it plans to invest more in its business and increase the general workforce.

Goal

Mark Zuckerberg made the announcement in a question session with employees. Facebook’s parent company lowered its engineering hiring target from 10,000 to 7,000 for this year. This confirms that Meta joins the trend of reducing hiring processes and is a response to the uncertain outlook of the future.

Uber

Slowing down hiring and cutting spending on marketing and incentives are the first measures announced by Uber Technologies. The information was made known through an email from the CEO, Dara Khosrowshahi, in which he stated that the hiring would be treated as a privilege and that when and where to add personnel would be carefully analyzed.

And the technological unicorns?

Contrary to the measures of the technology giants, the unicorns (startups) have gone further. His decisions include the reduction of personnel that has been classified as a wave of dismissals. Most of the mass dismissal measures have been presented in Brazil. There, small companies such as Ebanx (Brazil) have had to reduce their staff by 20%. This has affected other unicorns located in Brazil such as the Colombian Frubana and Tiger Global.

In the month of May alone, startups laid off more than 17,000 employees, according to the newspaper El Espectador. This phenomenon not only applies to unicorns in Latin America but throughout the world. Mainly, low investment and rising inflation are the main causes of these massive layoffs in emerging companies.

Image: Firmbee.com on Unsplash

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