Companies cut jobs, freeze hiring to prepare for economic slowdown

Technology companies, crypto exchanges and financial firms are cutting jobs and slowing hiring as global economic growth slows due to higher interest rates, red-hot inflation and an energy crisis in Europe.

In a sign of a tough second half of the year, growth in the world’s largest economy, the United States, shrank for the second straight quarter, while in the euro zone business growth slowed sharply in June due to rising cost of living.

Layoffs –

Alibaba Group – About 39,000 staff

Started firing employees in February. It discussed job cuts with several business units that month and left it to them to make specific plans.

Tencent Holdings – 10%-15% headcount

In an internal meeting at Tencent at the end of 2021, CEO Pony Ma told staff the company should prepare for a “winter”, two sources told Reuters.

Tesla Inc – Roughly 10% in salaried staff

“I have a super bad feeling about the economy,” CEO Elon Musk said in emails.

JPMorgan Chase & Co – Over 1,000 employees

“Our staffing decision this week was a result of cyclical changes in the mortgage market,” a spokesperson said.

Shopify Inc – 10% of its workforce

“Ultimately, placing this bet was my call to make and I got this wrong,” CEO Tobi Lutke said, referring to a bet on post-pandemic growth in online shopping that went sour.

Netflix – 450 jobs

“While we continue to invest significantly in the business, we made these adjustments so that our costs are growing in line with our slower revenue growth,” the company said.

Coinbase Global Inc – 1,100 jobs

“We appear to be entering a recession after a 10+ year economic boom. A recession could lead to another crypto winter, and could last for an extended period,” CEO Brian Armstrong said.

OpenSea – 20% of its workforce

“The reality is that we have entered an unprecedented combination of a crypto winter and broad macroeconomic instability, and we need to prepare the company for the possibility of a prolonged downturn,” CEO Devin Finzer said.

Klarna – 10% of its workforce

“Since then (2021), we have seen a tragic and unnecessary war in Ukraine unfold, a shift in consumer sentiment, a steep increase in inflation, a highly volatile stock market and a likely recession,” CEO Sebastian Siemiatkowski said.

Robinhood Markets Inc – 9% of its full-time employees

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