More tech giants slow hiring strategies
Amazon and Salesforce begin cutting down their hiring strategies.
Why You Should Care
A plethora of tech companies are cutting down their hiring targets.
Discover why and how it can be part of a larger strategy.
In recent weeks the likes of Twitter, Netflix, and Uber have announced plans to slow their hiring strategy. The list of technology giants who are following suit now grows with Amazon and Salesforce joining the ranks.
Not every company has noted the same factors, but it is clear that a theme is emerging. Interestingly, these hiring respites come amid reports of industry-wide skill gaps and a need for talent.
Some of the companies who are re-evaluating their hiring strategy have seen demand for their products slow, while others are looking at a way to address the current war for talent.
Amazon and Salesforce
Insider reported that Amazon’s Worldwide Consumer team will cut its hiring target by 7% this year (1,511 people)
In an email retrieved by Insider, Gokul Dakshina, VP of finance and CFO for Amazon’s North America consumer business, wrote: “We fully understand that this is not ideal and the teams have to make some tough choices to prioritize within the limited resources. Please adjust your hiring ramp accordingly.”
This change in approach may not be a surprise to insiders in Amazon. After all, last month CFO Brian Olsavsky discussed a decline in financial results: “We have too much space right now versus our demand patterns.”
While Salesforce has seen a slump in its stock value, it appears to be a natural reduction in hiring after a large influx. A spokesperson from the company told UNLEASH: “We hired 20,000 employees over the past year and are hiring another 4,000 employees this quarter alone. Business travel remains an important part of how we serve our customers.”
The internal memo from Salesforce announced a hiring freeze but no layoffs.
Shifting acquisition policies
The needs of consumers are changing as rules put in place because of COVID-19 are eased. As a result, what companies can deliver and what they need internally has altered.
Of course, some companies may thrive in this changing environment but that doesn’t mean it’s the ideal time to onboard more people. With the cost of living rising, the wants of employees changing, and generally more power being in the hands of the candidate; some companies may hope that the cost of hiring declines in the coming months before committing to an onboarding strategy.
There is a myriad of reasons why tech giants are slowing their hiring strategies, but it is evident that they all believe that it is the solution to their problems.
UNLEASH has reached out to Amazon for comment but has yet to receive a response.
Dan combines his first-hand experience alongside the latest news and opinions in the HR Technology space.