As fears of a global economic recession intensify, many technology companies are beginning to reconsider their personnel needs. Many of these companies have frozen hiring, canceled established hiring plans, and even started laying off staff.
Google and Lyft are also starting to follow in the footsteps of other tech companies. Google announced on Wednesday that it would suspend hiring for the next two weeks, while ride-hailing company Lyft announced it was closing its car rental business and laying off 60 jobs.
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Google parent Alphabet has been slowing hiring. Chief executive Sundar Pichai told employees this month that while Google added 10,000 employees in the second quarter, the company would slow hiring for the rest of the year, prioritizing hiring in engineering and technology.
“Like all companies, we’re not immune to contrarians,” he said. Google said Wednesday’s announcement of the hiring suspension was part of a slowdown in hiring “to allow teams to prioritize them for the rest of the year.” Much-needed positions and hiring plans.”
In May, Lyft told employees it was reining in hiring after its stock price tumbled. Lyft announced again this week that it is closing its car rental business and laying off about 60 jobs. In contrast, arch-rival Uber is more optimistic. Chief Executive Dara Khosrowshahi said in June that his company was “recession-proof” and had no plans to cut jobs.
“We will use this time to review our personnel needs and develop a set of New recruiting programs,” Google said the hiring suspension will not affect the jobs it is hiring for, but the company is no longer offering new job opportunities to job seekers.
“Google is watching the situation and following the pace of other big tech companies slowing hiring in 2023, given the macroeconomic cloud,” said Wedbush analyst Dan Ives. “Google sees the numbers Spending on advertising has slowed, which we think is a prudent move.”
As Ives said, many big tech companies have suspended or stopped hiring before. In May, Facebook parent Meta announced that it was suspending hiring in certain departments, including those working on its shopping features and Messenger Kids. Twitter and Spotify have cut hiring, and Apple plans to slow hiring in 2023. Many companies, including Tesla and Netflix, have also made layoffs to varying degrees.
