Economy

Factbox-From Meta to Peloton, companies slow hiring as economy sputters

5/5 FILE PHOTO: A Peloton logo is pictured on a sign outside a store in the Manhattan borough of New York City, U.S., January 25, 2022. REUTERS/Carlo Allegri 2/5

(Reuters) – Decades-high inflation and fallout from the Ukraine crisis have pressured many companies to consider laying off people or freezing hiring.

Last Friday, Elon Musk said he has a “super bad feeling” about the economy and plans to cut Tesla (NASDAQ:TSLA)’s workforce by about 10%, according to an internal email seen by Reuters.

Musk backtracked on Saturday and said the electric-vehicle maker’s total headcount will increase over the next 12 months, but the number of salaried staff should be little changed.

Following is a list of some other companies that have announced layoffs or frozen hiring to rein in costs:

COMPANIES COMMENTS

Alibaba (NYSE:BABA) Group China’s Alibaba might cut more than 15% of its total workforce, or about

39,000 employees, due to a sweeping regulatory crackdown in China, as well as

slowing sales growth and rising prices.

European online car retailer Cazoo said it would cut its workforce

Cazoo Group by about 15% as it looks to conserve cash.

Ltd

Carvana Co (NYSE:CVNA) Carvana said it will lay off about 2,500 employees, or 12% of its workforce.

Coinbase (NASDAQ:COIN) Coinbase will extend its hiring freeze for the foreseeable future and rescind

Global Inc a number of accepted offers to deal with current macroeconomic conditions.

Getir Turkey’s Getir is planning to cut 14% of its staff globally due to rising

global inflation and costs, a source with knowledge of the matter told Reuters

on May 25.

German grocery app Gorillas will lay off 300 people, cutting its

Gorillas administrative staff in half, Chief Executive Kagan Sumer said on May 24.

Henkel AG (OTC:HENKY) & Germany’s Henkel, the company behind Schwarzkopf, said on May 5 it would cut

Co KGaA about 2,000 positions due to low demand of its shampoos and hair spray, as

well as rising costs and global supply chain issues.

Klarna Swedish company Klarna said on May 23 it was slashing 10% of its 7,000 strong

workforce as a consequence of a recent steep increase in inflation, fear of a

recession and the war in Ukraine worsening business sentiment. 

Lyft Inc (NASDAQ:LYFT) The company said in May it will slow down hiring and assess budget cuts in

some departments.

Meta Facebook (NASDAQ:FB) parent Meta said in May it will slow the growth of its workforce.

Platforms Inc

Move About Sweden’s Move About Group said on May 20 it would cut 17 out of 40 positions

Group AB due to indirect effects of the war in Ukraine and an excessive cost base.

Netflix (NASDAQ:NFLX) Netflix in May said it has laid off about 150 people, mostly in the U.S., as

the streaming service company faces slowing growth.

Peloton (NASDAQ:PTON) Peloton in February said it will cut about 2,800 corporate jobs as it looks to

Interactive revitalize sagging sales.

Inc

Robinhood (NASDAQ:HOOD) The retail trading platform said in April it is laying off about 9% of its

Markets Inc full-time employees.

Snap Inc (NYSE:SNAP) CEO Evan Spiegel in May told employees the company will slow hiring for this

year.

Tencent Chinese company Tencent is struggling to cope with the slowing economy, and

Holdings might cut between 10-15% of its total workforce this year.

Twitter Inc (NYSE:TWTR) CEO Parag Agrawal said in a memo that the social media company will pause

hiring and review existing job offers to determine whether any “should be

pulled back”.

Uber (NYSE:UBER) Uber will scale back hiring and reduce expenditure on its marketing and

Technologies incentive activities, Reuters reported in May, citing a letter from the CEO.

Inc

Valmet Oyj Valmet said on May 23 it was in negotiations for temporary layoffs of up to

three months, with about 340 employees part of the talks at its valve factory

in Helsinki due to reduced orders caused by the war in Ukraine and COVID-19

restrictions in China.

Source: Regulatory filings, Reuters stories, company websites

Source

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button

Become a Millionaire by Trading Crypto!