From Tesla to Peloton, companies slow hiring as economy sputters

Elon Musk spooked investors on Friday with a warning on the economy and plans to cut Tesla’s workforce, joining a growing list of companies that have dialed back hiring amid decades-high inflation and fallout from the Ukraine crisis.

The billionaire said he has a “super bad feeling” about the economy and that the electric carmaker needs to axe about 10% of its workforce, according to an internal email seen by Reuters.

China’s Alibaba might cut more than 15% of its total workforce, or about 39,000 employees, due to a sweeping regulatory crackdown in China, as well as slowing sales growth and rising prices.

Carvana said it will lay off about 2,500 employees, or 12% of its workforce. Coinbase will extend its hiring freeze for the foreseeable future and rescind Global Inc a number of accepted offers to deal with current macroeconomic conditions.

Getir is planning to cut 14% of its staff globally due to rising global inflation and costs, a source with knowledge of the matter told Reuters on May 25.

Germany’s Henkel, the company behind Schwarzkopf, said on May 5 it would cut Co KGaA about 2,000 positions due to low demand of its shampoos and hair spray, as well as rising costs and global supply chain issues.

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Swedish company Klarna said on May 23 it was slashing 10% of its 7,000 strong workforce as a consequence of a recent steep increase in inflation, fear of a recession and the war in Ukraine worsening business sentiment.

Lyft Inc said in May it will slow down hiring and assess budget cuts in some departments.

Meta said in May it will slow the growth of its workforce. Platforms Inc Move About Group said on May 20 it would cut 17 out of 40 positions Group AB due to indirect effects of the war in Ukraine and an excessive cost base.

Netflix in May said it has laid off about 150 people, mostly in the U.S., as the streaming service company faces slowing growth.

Peloton in February said it will cut about 2,800 corporate jobs as it looks to Interactive revitalize sagging sales. Inc Robinhood, retail trading platform, said in April it is laying off about 9% of its Markets Inc full-time employees.

Snap Inc CEO Evan Spiegel in May told employees the company will slow hiring for this year.

Tencent is struggling to cope with the slowing economy, and Holdings might cut between 10-15% of its total workforce this year.

Twitter Inc CEO Parag Agrawal said in a memo that the social media company will pause hiring and review existing job offers to determine whether any “should be pulled back”.

Uber will scale back hiring and reduce expenditure on its marketing and Technologies incentive activities, Reuters reported in May, citing a letter from the Inc CEO.

Valmet Oyj said on May 23 it is considering temporary layoffs of about 340 employees at its valve factory in Helsinki due to reduced orders caused by the war in Ukraine and COVID-19 restrictions in China.

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Christin Hakim

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