Even Silicon Valley stalwarts are worried about a recession in the coming months, as evidenced by Apple Inc. reining in hiring and spending plans.
Apple hasn't adopted a companywide policy but is looking to limit expenditures and job growth at some of its divisions Tech peers such as Amazon.com Inc., Microsoft Corp., and Alphabet Inc. have taken steps to decelerate spending.
The news sent the stock market into a tailspin and made people nervous about the tech earnings season. It might be hard for companies to convince investors. International Business Machines Corp.'s shares fell in late trading after the company reported better-than- expected sales growth.
Over the past 10 years, Apple has grown its workforce.
The company reports are sources.
Most of the biggest tech companies aren't talking about eliminating jobs at the moment. Overall US job growth hasn't slowed. Manufacturing jobs helped bolster the numbers, with payrolls increasing 372,000 in June.
In June, the US added 25,000 information jobs, which is 105,000 more than before the swine flu.
More jobs were added in June.
Some tech companies are laying off workers. Microsoft said last week that it was eliminating some positions.
Microsoft still expects to end the year with more employees, even though it has reduced its workforce. There was a move in May to slow hiring at the Windows, Office and Teams divisions.
The company laid off hundreds of workers and closed its California facility devoted to self-driving technology.
In an increasingly shaky economy, layoffs would be necessary according to Musk. About 10% of the company's employees will lose their jobs over the next three months, he said in a subsequent interview.
In the last few months, some former highfliers have laid off workers. A few hundred jobs were cut in June, and Peloton just announced plans to close its in-house manufacturing facility.
Spending has been cut by Meta Platforms Inc. The company said in April that it would cut expenses by $3 billion. The metaverse is one of the core priorities of the product teams.
Meta stopped development on one of its early smartwatch prototypes and changed the look of its in- home video device to focus more on business customers.
It was a rare move for the internet giant, which typically adds tens of thousands of employees every year. The hiring of technical and other critical roles will be the focus of the company.
He said that we need to be more entrepreneurial, more focused and more hungry.
The need for major layoffs is not something that other companies are looking to eliminate.
Amazon was staffed up during the Pandemic so it could deal with the increase in spending. The company has said that it is working through the problem of overstaffing with attrition.
In some cases, Amazon is subleasing warehouse space and has paused development of facilities meant for office workers, saying it needs more time to determine how much space employees will need for hybrid work
The decision to have too many workers and too much warehouse space was made early in the Pandemic, according to Andy Jassy.
He said that they knew it might mean more capacity.
During the earnings season, there is a question of whether demand from consumers has changed. In April, Apple warned that the quarter would be difficult due to supply-chain challenges.
As a result of those problems, Apple is expected to lose as much as $8 billion in the quarter. When Apple reports results on July 28th, investors should get a better idea of the damage.
With help from KurtWagner, Mark Bergen, Matt Day, Edward Ludlow, Dana Hull, and Brody Ford.
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