Startups That Are Going Into a Hiring Freeze in 2022
After years of rapid growth, the tech industry has been hit with hiring freezes. Big tech giants like Google, Facebook, and Amazon have all announced or instituted hiring freezes this year. Although some might see these as temporary measures to combat a downturn in business, employees are still concerned that the freeze could indicate more significant problems.
As the salaries of tech employees continue to rise, startups are going into a hiring freeze in 2022. This is not just a bad sign but also causes panic among the engineering teams.
This blog post has covered a list of startups going into a hiring freeze in 2022 by giving some additional insights.
Some of The Startups That Are Going Into a Hiring Freeze in 2022
Uber – “We will treat hiring as a privilege and be deliberate about when and where we add headcount,” CEO Dara Khosrowshahi said in a letter seen by Reuters.
Snap Inc – “We continue to face rising inflation and interest rates, supply chain shortages and labour disruptions, platform policy changes, the impact of the war in Ukraine, and more,” CEO Evan Spiegel said in a memo to employees.
Calm – One of the best stress-reduction apps for at least the last three years CEO also says; “especially difficult for a company like ours whose mission is focused on workplace mental health and wellness,” CEO David Ko
SoundCloud, the music sharing website, is reducing its global workforce by 20% due to “the challenging economic climate and financial market headwinds,” CEO Michael Weissman said in an email to employees on August 3, seen by Billboard.
The Other Companies;
Hopin, Spotify, Expedia, Vimeo, Lyft, Shopify, Change.org, OnlyFans, MicrosoftLyft Inc, Carvana Co., Netflix, Better, Fast, Apple, and TikTok have shared layoffs and hiring freezes during 2022.
What Type of Companies are Affected Most About Hiring Freeze?
It’s about all types of companies’ concerns. Big companies, Start-ups, small business owners, and entrepreneurs deal with the same issue in their scope. What’s more worrisome is that these big tech companies employ many more people. The number of technologists employed by Facebook and Google has doubled in the last five years. Apple has tripled its workforce compared to ten years ago – typically at high salaries. We all know these employees have high expectations for their futures that companies can’t ignore.
Recruiter Explains The Hiring Freeze in 2022
You can listen hiring freeze issue from the expert. Recruiter explains the tech hiring freeze in 2022 on areerShakers’ YouTube Channel. In this video, you’ll learn why companies have hiring freezes and what we need to do next.
Which Team Worried Most about Hiring Freeze?
The hiring freeze is not just having problems in one department but across their entire business. The hiring freeze in 2022 has caused panic among the engineering teams. The high salary of technical employees and the scarcity of engineers have been cited as reasons for this issue. As you can see from the list above, most of the tech layoffs in 2022 have included cuts at big companies like Netflix, Better, Fast, and other U.S. companies. On the other side, companies like Airbnb, the European startup still hiring despite the tech downturn. They have held candidate interest over time and insist they won’t freeze hiring.
Many companies like Airbnb are looking to expand their tech team to develop more sophisticated solutions for their users. These hiring freeze crises will only be temporary, allowing these companies to build up their talent pool when they are ready to grow again.
How Long Does The Hiring Freeze Last?
The timeline for a hiring freeze is entirely dependent on the company’s current financial state and long-term strategies. And of course, the cause of the hiring freeze. However, according to Indeed editorial team, it can sometimes last between three and six months.
Final Thoughts
The startups who have already gone into a hiring freeze believe this will only be temporary and allow these companies to build up their talent pool for when they are ready to grow again. We also believe that tech hiring freezes are not a sign of an economic downturn because they are used to ensure that the company doesn’t overspend on talent. Companies can save money by using other channels like outsourcing or automation. Some tech startups even use the freeze to their advantage by boosting their current employees and giving them more responsibility, which also helps with high retention rates.
Sources: Mashable, Indeed, Reuters, Bloomberg + media reports
