From Seattle to Silicon Valley to Austin, a grim new reality is setting in across the tech landscape: a heady, decades-long era of rapid sales gains, boundless jobs growth and ever-soaring stock prices is coming to an end.
What’s emerging in its place is an age of diminished expectations marked by job cuts and hiring slowdowns, slashed growth projections and shelved expansion plans. The malaise is damaging employee morale, affecting the industry’s ability to attract talent, and has wide-ranging implications for US economic growth and innovation.
The drumbeat continued yesterday, as Tesla Inc chief executive officer Elon Musk told employees the electric-vehicle maker needs to reduce its salaried workforce by 10% and pause hiring worldwide. Facebook parent Meta Platforms Inc is easing hiring and paring expenses, and Twitter Inc. instituted a hiring freeze and withdrew some job offers ahead of a planned takeover by Musk. Apple Inc warned in April that restrictions related to Covid-19 lockdowns in China will shave as much as $8 billion from revenue in the current quarter.
The specter of job cuts has begun to haunt the Silicon Valley psyche. On Blind, an app that employees can use to talk anonymously about their employers, discussions about hiring freezes increased by 13 times from April 19 to May 19 compared with a year earlier. Netflix Inc said last month it’s laying off about 150 workers after reporting an unexpected subscriber loss; the streaming giant’s shares have tumbled 71% since mid-November. At Meta, managers are slowing hiring for many mid-to-senior level positions companywide, and in April cut back on adding engineers with limited experience.
Dara Khosrowshahi, chief executive officer of Uber Technologies Inc, speaks during a Bloomberg Technology television interview in San Francisco, California, US, on Tuesday, Dec. 14, 2021. Khosrowshahi said the ride-hailing giant had its best week last week since the start of the pandemic. What’s happening now appears to be a market correction, Hancock added, though he also worries that some of the shine and innovation of the tech industry is going away as products like streaming services and social networking become more of a utility.
The Seattle-based company’s announcement that it has more space than it needs spooked hundreds of employees in its real-estate division, according to a person familiar with the situation.
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