Both Google and Microsoft have taken steps to curb hiring, the latest in a series of moves by the tech giants to reduce the number of new jobs.
Google CEO Sundar Pichai announced initiatives to slow hiring for the rest of the year, and paused most new offerings for two weeks to reevaluate hiring plans, according to a statement from Google made at ZDNet. Microsoft has cut many job openings, including within its Azure cloud business and security software unit. Both companies will continue to honor existing job openings.
On July 12, Microsoft also announced layoffs that affect 1% of its workforce of 180,000 people. They mainly affect the consulting and customer solutions groups. However, a Microsoft representative told ZDNet that these changes reflect a realignment of resources in preparation for the new fiscal year.
“Microsoft will continue to increase its workforce over the coming year, and we will be more focused on allocating those resources,” the Microsoft spokesperson said.
Growing shortage
These announcements follow similar news from other tech giants. Companies such as Meta and Tesla have announced workforce reductions, while others, such as Lyft, Klarna and PayPal, have begun layoffs.
Cryptocurrency exchange CoinBase even went so far as to rescind accepted job offers. At the same time, inflation is soaring, interest rates are at their steepest rise in nearly three decades, and experts are warning of an impending recession.
There is also a growing shortage of digital skills, which is expected to remain a priority for many businesses over the next 12 months and beyond. So far, hiring in the tech sector remains strong. However, recent large-scale moves by tech giants can serve as a reminder that all good things come to an end – and that the tech sector is by no means untouchable by current economic pressures. While it’s too early to tell if more significant layoffs will follow, the recent wave of hiring freezes may just be the start – leaving the outlook for graduates and tech workers looking for jobs a little more uncertain.
Source: ZDNet.com