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From Meta to Peloton, companies slow hiring as economy sputters

06/08/2022 | 08:38am EDT
FILE PHOTO: A man stands in front of a sign of Meta at its headquarters in Menlo Park

    June 8 (Reuters) - Decades-high inflation and fallout from the Ukraine crisis have pressured
many companies to consider laying off people or freezing hiring.
    Last Friday, Elon Musk said he has a "super bad feeling" about the economy and plans to cut
Tesla's workforce by about 10%, according to an internal email seen by Reuters.
    Musk backtracked on Saturday and said the electric-vehicle maker's total headcount will
increase over the next 12 months, but the number of salaried staff should be little changed.

    Following is a list of some other companies that have announced layoffs or frozen hiring to
rein in costs:
 Alibaba Group  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.             
 Cazoo Group    European online car retailer Cazoo said it would cut its workforce by about
 Ltd            15% as it looks to conserve cash.             
 Carvana Co     Carvana said it will lay off about 2,500 employees, or 12% of its workforce.
 Coinbase       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          Turkey's 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.             
 Gorillas       German grocery app Gorillas will lay off 300 people, cutting its
                administrative staff in half, Chief Executive Kagan Sumer said on May 24.
 Henkel AG &    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.             
 Klarna         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       The company said in May it will slow down hiring and assess budget cuts in
                some departments.             
 Meta           Facebook parent Meta said in May it will slow the growth of its workforce.
 Platforms Inc                 
 Move About     Sweden's 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        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        Peloton in February said it will cut about 2,800 corporate jobs as it looks to
 Interactive    revitalize sagging sales.             
 Robinhood      The 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
 Tencent        Chinese company 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           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     Valmet said on May 23 it was in negotiations for temporary layoffs of up to
                three months, with about 340 employees part of the talks at its valve factory
                in Helsinki due to reduced orders caused by the war in Ukraine and COVID-19
                restrictions in China.             
Source: Regulatory filings, Reuters stories, company websites

 (Reporting by Tiyashi Datta in Bengaluru and Louise Breusch Rasmussen, Marie Mannes and Agata
Rybska; Editing by Sweta Singh, Devika Syamnath and Maju Samuel)

© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
ALIBABA GROUP HOLDING LIMITED -2.05% 90.76 Delayed Quote.-22.08%
CARVANA CO. -5.30% 44.87 Delayed Quote.-79.73%
COINBASE GLOBAL, INC. 4.29% 96.9061 Delayed Quote.-63.13%
HENKEL AG & CO. KGAA 1.44% 64.74 Delayed Quote.-10.29%
LYFT, INC. -0.44% 20.18 Delayed Quote.-52.54%
META PLATFORMS, INC. 2.03% 170.63 Delayed Quote.-50.32%
NETFLIX, INC. 2.85% 233.62 Delayed Quote.-62.36%
PELOTON INTERACTIVE, INC. -0.21% 11.79 Delayed Quote.-67.03%
ROBINHOOD MARKETS, INC. 2.36% 10.645 Delayed Quote.-41.44%
S&P GSCI PETROLEUM INDEX 0.66% 342.3476 Real-time Quote.24.22%
SNAP INC. 2.36% 10.425 Delayed Quote.-78.35%
TENCENT HOLDINGS LIMITED -2.67% 299.4 Delayed Quote.-32.66%
TESLA, INC. 1.33% 877.74 Delayed Quote.-18.19%
TWITTER, INC. 0.98% 42.915 Delayed Quote.-1.62%
VALMET OYJ 1.84% 25.99 Delayed Quote.-32.34%
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