Recession Alert: In the past few days, giant companies have prepared to face the recession and have also started job cuts. Find out which companies have taken what decisions.
After the shock of the Coronavirus, the entire world is now in the grip of the biggest recession in the last few decades. Due to this, there is a decline in the stock market as well. In particular, the stocks of tech companies have fallen sharply in the last 5-6 months. Many experts say the recession is only a few days away. Some say that a recession has occurred but has not been formally announced.
Meanwhile, all the world's giant companies, including Google, Amazon, Apple, Facebook, Microsoft, Netflix, and Tesla, have prepared to face the recession. These companies have started layoffs. Some have stopped new recruitment.
Alphabet/Google: Alphabet, the parent company of Google, has cut back on new hires. Company CEO Sundar Pichai had said in an internal memo that even though Google has employed 10,000 people, new opportunities will be reduced this year. Like other companies, the recession will also affect Google. Google now has 164 thousand employees.
Amazon: Amazon is one of the top employers in the world. As of March 2022, Amazon had 1.6 million employees. In April, the company said it had more employees than it needed. Employees who went on vacation due to Corona have returned to work. Because of this, we have suddenly gone from understaffed to overstaffed. This is affecting work. The company has considered leasing out some of its warehouses.
Apple: Apple has not yet officially said anything about the slowdown. But according to a Bloomberg report, new hires are being cut to combat the recession. Cost reduction in some departments is under consideration. As per data available till September 2021, the company had 154K employees.
Facebook- Facebook's parent company, Meta, has cut engineering hiring by 30 percent. The company's CEO, Mark Zuckerberg, has told employees to prepare for the worst financial crisis in history. The company had 78 thousand employees till March this year.
Microsoft: The company told employees to reduce new hires in Windows, Office, and Teams groups in May. So that if there is an economic recession, it can be dealt with. The company also cut staff a few days ago. By the end of 2021, the company had 181K employees.
Netflix: Video streaming platform Netflix has started layoffs. The company sent 150 people home in May. Then in June, 300 people were laid off. The company is facing a loss in subscribers due to many reasons. It had decreased by 200K in the first quarter. Whereas in the quarter ended June there was a decrease of 970K. Till last year the company had 11 thousand 300 employees.
Tesla: Owned by Elon Musk, the world's richest man, Tesla closed a facility in California in June. Due to this, 200 employees had time to sit at home. Musk himself has predicted a recession. It is necessary to take such a decision to face a recession. 10 percent of employees may lose their jobs in the next 3 months. By the end of 2021, Tesla had 100K employees.
Among other tech companies, Twitter has stopped hiring since May. Online furniture retailer Wayfair Inc has taken a similar decision. Unity Software Company has laid off 4 percent of its employees. Spotify cut 25 percent and Niantic Inc 8 percent in June.