United States: Big tech and hyperscalers show concern for economic slowdown

Jul 20, 2022 | Posted by MadalineDunn

Recently, IMF chief Kristalina Georgieva said that the outlook for the global economy has "darkened significantly" in recent months, as a global recession looks increasingly likely. This is sending shockwaves across the world, and even big tech companies are wavering in the shadow of economic uncertainty. Microsoft, for example, has announced that it has begun cutting the jobs of less than one per cent of its 180,000-person workforce, although according to a statement it made to Bloomberg, this isn't due to the economy. 

Likewise, Meta is making big cuts to its workforce. In an internal staff meeting, CEO Mark Zuckerberg, said: "Part of my hope by raising expectations and having more aggressive goals, and just kind of turning up the heat a little bit, is that I think some of you might decide that this place isn't for you, and that self-selection is OK with me." As a result, the company will cut its engineering hiring plans by 30%, and employ a more ruthless layoff scheme, whereby managers will not allow someone to be "net neutral" for Meta, and if a worker is perceived to be either "coasting" or a "low performer," they will be cut, due to, as Meta's VP of Remote Presence and Engineering Maher Saba, says them being "not who [Meta] need," and are "failing" the company.

Google, on the other hand, has expressed that it's not "immune to economic headwinds," and that the global economic outlook has to be "top of mind," but, it has only announced a "slowing down the pace of hiring for the rest of the year," so far. 

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