Recession storm in the global economy: giant companies are shrinking

In the global economy, especially in the US, the economic slowdown caused by the rise in interest rates by central banks against inflation caused many companies to contract.

Small tech companies, as well as tech giants, reduced hiring, while mass layoffs increased.

SILICON VALLEY GIANTS SLOW RECRUITMENTS

Meta, Microsoft and Amazon have slowed hiring in recent months. Alphabet, the parent company of Google and YouTube, also slowed the pace of hiring.

The ride-sharing service, which had 5,000 employees the week before, said it would lay off 650, or 13 percent of Lyft employees. “Several challenges are emerging in the economy,” Lyft said in the announcement.

Lyft co-founders Logan Green and John Zimmer said in a letter to employees that despite all efforts, they made the “difficult” decision to lay off 13 percent of the team.

US-based payment processing platform Stripe has announced that it will lay off 1,100 people, equivalent to 14 percent of its employees. “2022 represents the beginning of a different economic climate,” Stripe CEO Patrick Collison said in an email announcing 1,000 job cuts this week.

Smaller tech companies like Robinhood and Coinbase have also initiated layoffs.

ELON MUSK EFFECT ON TWITTER

Famed CEO Elon Musk, the new owner of Twitter, also launched a massive wave of layoffs a week after taking office.

“We recognize that this decision will affect a number of people who have made valuable contributions to Twitter. Unfortunately, however, this action is necessary to ensure the future success of the company.

On the other hand, the layoffs were not limited to US-based technology companies. The technology company based in the Netherlands, Philips, announced that it will lay off 4,000 jobs worldwide.

The company, which has 79,000 employees worldwide, announced that a total of 4,000 employees, 400 of whom will be in the Netherlands, will be laid off due to declining sales and falling orders.

PHILIPS TO TERMINATE 4,000 PEOPLE

Philips Chief Executive Officer (CEO) Roy Jakobs said: “Our priority is to regain customer confidence lost due to recalled sleep apnea devices, increase supply chain efficiencies and speed up operations. commercial. While we do this, we have to lay off 4,000 employees immediately, although it is not easy for us.”

Swiss Bank Credit Suisse has also become one of the global companies hardest hit by the current crisis. The bank announced that it was trying to fill a large capital shortfall and wanted to sell parts of the bank. In addition, it was reported that a strong wave of layoffs is in its final stage that will affect 6,000 people in the bank, which has 50,000 employees globally.