- Companies that have experienced tremendous growth in recent years are tightening their belts.
- The executives made reference to the economic changes in their messages.
- Some of these companies embarked on massive hiring before changing course.
Technology and e-commerce companies are slowing down after explosive growth in recent years.
Companies like Wayfair, Meta and DoorDash increased their spending and hiring during the pandemic, but now they are taking a step back. The S&P 500 and the Nasdaq have dropped since the beginning of the year, inflation is at historic levels, and interest rates are rising, all of which are leading to a turnaround in the economy.
Here are some prominent companies freezing or delaying hiring:
Wayfair said it will freeze hiring in corporate roles for 90 days, Bloomberg reported Tuesday. The move responds to “great uncertainty in the economy in general,” a spokesman told Bloomberg.
The online furniture retailer saw a 55% increase in business in 2020 as shoppers stuck at home bought new furniture and décor. Sales then slowed and the company was hit by supply chain problems that delayed orders for months.
Wayfair has almost 17,000 employees.
Facebook parent Meta has halted hiring for many roles for the rest of 2022, according to an internal memo obtained by Insider. The social media giant will also lower hiring targets at other divisions of the company, a rarity after it announced a 10,000-person hiring spree in 2021 to build the metaverse.
A Meta spokesperson told Insider that the company “regularly reassesses” its hiring strategy.
In February, Facebook reported a decline in the number of users for the first time and stock prices quickly plummeted 22%.
Uber CEO Dara Khosrowshahi announced to workers that the company will cut spending across the business, according to an internal email obtained by CNBC.
Uber will treat hiring as a “privilege” and will slash spending on marketing and incentives in response to a “seismic shift” in the market.
“This next period will be different and will require a different approach,” Khosrowshahi wrote in the email.
DoorDash CEO Tony Xu told workers in April that the company will reduce hiring in the rest of 2022. This year, the delivery service plans to increase its numbers by 10% to 15%, Xu said, a major slowdown after more than doubling in size in 2021.
Like other tech companies, DoorDash saw a burst of growth early in the pandemic as delivery demand soared, but that growth hasn’t continued as food prices rise and customers have more choice. delivery and dinner.
base of coins
Coinbase is slowing down hiring plans, President and COO Emilie Choi shared in a public note. In early 2022, Coinbase planned to triple in size this year, but now “we feel it is prudent to reduce hiring and reassess our headcount,” Choi wrote.
Coinbase is the largest cryptocurrency exchange, and the news comes after a significant downturn in the cryptocurrency market. The value of Bitcoin has halved in the last six months, with other coins following. Coinbase shares are down 75% and it says it is losing users.
Twitter is pausing most hiring and possibly terminating some job openings, the tech company confirmed to Insider. CEO Parag Agrawal said the company is not planning layoffs, but has failed to meet viewership and profit targets.
Twitter and Elon Musk previously agreed to a deal in which Musk would buy the website for $44 billion, but the deal is on hold as Musk says he needs proof about the number of bot accounts on the social media platform.