60 TOP COMPANIES FIRED EMPLOYEES IN AUGUST, SIGNS OF GLOBAL SLOWDOWN

Sat 24 September 2022:

In August 2022, more than 60 prestigious companies announced layoffs, according to GlobalData’s news database. Companies across the board have reduced their headcount due to the global slowdown and looming recessionary fears.

The large tech corporations, including Microsoft, Apple, Tencent, Xiaomi, and Snap, fired employees as uncertain macroeconomic conditions threatened to harm the companies’ financial books.

The worst, according to experts, is still to come. Sherla Sriprada, a business fundamentals analyst at GlobalData, the company that released the report, used Microsoft as an example and discussed how it was preparing to make additional cuts.

From Microsoft to Apple to Tencent to Xiaomi to Snap, the big tech behemoths fired employees as uncertain macroeconomic conditions threatened to hurt the financial books of the companies.

However, experts believe that the worst is yet to come. Sherla Sriprada, business fundamentals analyst at GlobalData which published the report cited the example of Microsoft and how the company was planning future cuts as well.

“Of particular interest is Microsoft, which laid off 1% of its total workforce due to the economic slowdown, and has plans to terminate a further 200 employees from its consumer research and development (R&D) team as a part of its realignment structure. The company’s job postings fell by 47 per cent in August 2022 over January 2022.” said Sriprada.

China’s Alibaba reportedly fired 10,000 employees as part of cost-cutting measures and due to slowing sales growth and rising prices.

Tencent, the crown jewel of China’s booming tech sector reported a slowdown in sales for the first time this year and instantly laid off over 5,500 employees.

Meanwhile, Coinbase Global Inc stated it will extend its hiring freeze for the foreseeable future and rescind a number of accepted offers in order to deal with current macroeconomic conditions

Similarly, Meta (formerly Facebook) has paused hirings for several verticals, like shopping and Messenger Kids, which has triggered the fear of layoffs among employees.

“I can’t sit here and make a permanent ongoing promise that as things shift that we won’t have to reconsider that (job cuts).” Zuckerberg told the staff during a meeting.

Google and Alphabet CEO Sundar Pichai earlier this month stated that he wants to make his company 20 per cent efficient while hinting at possible job cuts.

“We want to make sure as a company, when you have fewer resources than before, you are prioritizing all the right things to be working on and your employees are really productive that they can actually have impact on the things they’re working on so that’s what we are spending our time on,” said Pichai.

Similarly, Goldman Sachs plans to fire hundreds of employees by resuming its annual practice, which had been halted for the last two years due to the pandemic.

According to experts, Goldman Sachs could fire up to 5% of its underperforming employees. This will result in the layoff of 500 to 2,400 people.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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