Tech companies are once again tapping the brakes on hiring as they contend with sluggish consumer spending, higher interest rates and the impact of a strong dollar overseas.
Amazon.com Inc. said Thursday that it would pause adding new corporate workers, citing an “uncertain” economy and its hiring boom in recent years. Lyft Inc., the ride-hailing company, is going further: It will eliminate 13% of staff, or around 683 people.
Twitter Inc.’s cutbacks are under particular scrutiny as new owner Elon Musk shakes up the social-networking business and pares roughly half its jobs.
Tech companies made moves earlier this year to rein in costs, with many of the industry’s biggest firms freezing hiring or cutting some departments. Even Apple Inc., which has outperformed most of its peers this year, is slowing spending. But some tech giants are finding that they now need to take more dramatic steps to trim their expenses.
More broadly, Challenger, Gray & Christmas said Thursday that job-cut announcements were up 48% year-over-year in October, with more layoffs “on the way.” A federal jobs report on Friday will give a clearer picture of US hiring trends. Even with the austerity, economists expect a net gain of 200,000 for non-farm payrolls.
Here are some of the latest companies to tighten their belts:
Amazon
The e-commerce titan halted “new incremental” hiring across its corporate workforce -- a decision Chief Executive Officer Andy Jassy and his team made this week. “We anticipate keeping this pause in place for the next few months, and will continue to monitor what we’re seeing in the economy and the business to adjust as we think makes sense,” according to Beth Galetti, Amazon’s top human resources executive.
Chime
The digital-banking startup Chime Financial Inc. is cutting 12% of its staff, or 160 people. A spokesperson said the company remains well-capitalized and the move will position it for “sustained success.”
Digital Currency Group
Cryptocurrency conglomerate Digital Currency Group embarked on a restructuring last month that saw about 10 employees exit the company. As part of the shake-up, Mark Murphy was promoted to president from chief operating officer.
Galaxy Digital
Galaxy Digital Holdings Ltd., the crypto financial services firm founded by billionaire Michael Novogratz, is considering eliminating as much as 20% of its workforce. The plan may still be changed and the final number could be in a range of 15% to 20%, according to people familiar with the matter. Galaxy’s shares have plummeted 70% this year, part of a rout for cryptocurrencies.