Tech companies are cutting hiring, should we be worried?

Both Google and Microsoft have taken steps to limit hiring, the latest in a series of moves by the tech giants to cut new jobs.

Google CEO Sundar Pichai has announced initiatives to slow down hiring for the remainder of the year and has suspended most new offerings for two weeks to review hiring plans, according to a statement from Google on . Microsoft has cut many jobs, including in its cloud business software and Azure security division. Both companies will continue to work with existing vacancies.

On July 12, Microsoft also announced layoffs that will affect 1% of its 180,000 employees. They mainly affect the consulting and client solutions groups. However, a Microsoft spokesperson told that the changes reflect a reallocation of resources in preparation for the new fiscal year.

“Microsoft will continue to grow its workforce next year, and we will pay more attention to the allocation of these resources,” a Microsoft spokesperson said.

Growing deficit

These announcements follow similar news from other tech giants. Companies like Meta and Tesla have announced layoffs, while others like Lyft, Klarna and PayPal have started layoffs.

Cryptocurrency exchange CoinBase even went so far as to withdraw accepted job offers. At the same time, inflation is skyrocketing, interest rates are at their sharpest rise in nearly three decades, and experts are warning of a looming recession.

There is also a growing shortage of digital skills, which is expected to remain a priority for many businesses over the next 12 months and beyond. So far, hiring in the technology sector remains strong. However, the recent large-scale moves by the tech giants may serve as a reminder that all good things must come to an end and that the tech sector is by no means immune from the current economic woes. While it’s too early to tell if more significant layoffs will follow, the recent wave of hiring freezes may be just the beginning, leaving the outlook for graduates and tech workers looking for work a little more uncertain.

Source: .com

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