The bad moment of technology continues to claim victims among workers in the sector. After Meta, Twitter or Salesforce decided to freeze hiring, that Netflix, Robinhood o Klarna have made layoffs, and that Amazon announced that it is considering reducing the workforce of its logistics division, now Microsoft is the one that has said that it will stop the arrival of new employees, according to el Wall Street Journaland Paypal which is going to fire part of its staff, according to Bloomberg.
Microsoft. The Redmond, Washington company is going to stop hiring software developers for products such as Windows, Office or Teams. According to the New York newspaper, the decision has been made to respond to the growing economic uncertainty that occurs internationally, the same reason that other technology companies have used to take similar measures. However, a Microsoft spokeswoman has assured that they hope to resume the normal rhythm of hiring starting next year.
Microsoft, however, is not going to stop hiring in these divisions, it is simply going to do less and only in those positions that need immediate coverage. Likewise, all new arrivals of workers will have to be approved by the company’s senior management, something that has not happened until now.
In addition to this measure, Microsoft is not going to address other cost control actions, at least that we know of. In fact, in early May the company said to his workers that he was going to increase their salaries, so now he would be focusing on retaining his most valuable employees instead of trying to attract new talent.
Paypal. The online payment service, for its part, has recently executed new layoffs after a few weeks ago it fired 80 employees from its headquarters in San José, in the United States. Members affected by the latest headcount adjustment are from PayPal’s Chicago, Arizona and Nebraska locations.
According to Bloomberg, the decision would be motivated by the slowdown in Paypal revenues during the first quarter of 2022. The company remained profitable, and in fact grew 15% over the previous year, but that increase has been less than expected.
These circumstances led the company’s managers to approve a “strategic reduction of the global force”, according to Reuters. At the moment, the company would have spent about 20 million dollars in compensation to undertake this plan, and expects to spend another 100. Paypal managers say that the reduction in staff will save 260 million dollars a year.
Skinny cows. There are several technology companies that have decided to contain expenses in recent weeks by freezing hiring or dismissals. All of them, to a greater or lesser extent, are being affected by inflation and financial instability caused by the war in Ukraine. A common evil that is aggravated, in some cases, by other individuals that are leading these companies to be more conservative than ever.
Meta, for example, has stopped hiring largely due to the withdrawal of the advertising sector, to which is added the slow but inexorable decline of Facebook as a potosí of the conglomerate and the enormous expense they have made in recent months in the development of the metaverse .
The decline in advertising revenue has also affected Twitter, although in his case the uncertainty about his sale to Elon Musk has also had a lot of weight in the decision to stop the arrival of new employees. And Netflix, for its part, is experiencing the economic crisis within its particular subscriber crisis: it lost 200,000 subscribers in the first quarter of 2022, partly due to the termination of its service in Russia, but also due to increasingly fierce competition from the other streaming platforms. Something that is paying off with numerous layoffs in the company.