siliconindia | | AUGUST 20229The slowdown stirred marquee investors such as Sequoia, KKR and Y Combinator to guide the startups in their portfolios on how to persist. Almost every investor was giving a clear message: cut costs and increase runwayof workers to save up to $1 billion in cost-cutting measures, the media reported. Twitter has also cut 30 percent of its recruiting team, while Elon Musk-run Tesla has laid off hundreds of employees. Other tech companies that have slowed hiring include Nvidia, Snap, Uber, Spotify, Intel and Salesforce.Anticipated ReasonsAfter many prosperous years of spending money without much worry about limits on recruiting employees, getting real estate in dreamy locations, enhancing conditions and lavish parties, tech giants are suddenly slammed on the brakes and quickly recalculated their route. High-tech companies in the United States were quick to respond and fired about 20,000 workers in a very short time. Giant companies such as Robinhood and Coinbase, which are on the seam between high-tech and the capital market, fired thousands in one day. Giant companies such as Meta and Intel, whose stability is not feared, have also announced a freeze on recruitment.With the value of bitcoin, ethereum and other famous currencies falling sharply, startups in the risky cryptocurrency space are at the fore of layoffs. The illustrations of a rough new business climate are against the backdrop of a prolonged economic slowdown, grinding war in Europe and increasing interest rates & inflation. Any slowdown in hiring requires to be framed within the context of tech's meteoric rise, says Stephen Levy, director and senior economist at CCSCE. "Does the world want more of the goods and services that tech produces, and is that a growth sector over time?" Levy added. `The answer is yes'. Therefore, laying off workers proves that the fast-growing industry is also not immune to the global economic slowdown. The malaise damages employee morale, affects the industry's ability to attract talent and has wide-ranging implications for economic growth and innovation.
< Page 8 | Page 10 >