In the midst of “leaner times,” tech groups are cutting staff and stopping hiring

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  • E-commerce platform Stripe and ride-hailing service Lyft were the latest tech companies to lay off staff on Thursday, while Amazon suspended corporate employee hiring as companies tightened their belts to cope with the economic slowdown.

Stripe and Lyft’s job cuts came as various tech companies stopped cutting or expanding their workforce in his 2022 to deal with rising costs and interest rates. Twitter is expected to lay off up to half of its workforce under new owner Elon Musk.

In an email sent to employees on Thursday, Stripe CEO Patrick Collison said payment processors were “too busy in the world we’re in,” with 14% of employees, about 1,000. employee said he would be downgraded as he prepared. For “no wasted time”.

“2022 and he was too optimistic about the near-term growth of the internet economy in 2023, underestimating both the potential and impact of a broader slowdown.” Also on Thursday, Uber rival Lyft announced it would cut 683 jobs (13% of its 4,000 employees) to cut costs.

“We worked hard this summer to cut costs. We slowed and then stopped hiring. We cut spending. We need to transform, and to do that, we have to let go of some great team members,” Lyft co-founders Logan Green and John Zimmer said in a note to employees.

His Lyft layoffs, first reported by The Wall Street Journal, are his second layoffs for the ride-hailing company in recent months. The company is also selling its vehicle services business, he added.

In a filing to the US Securities and Exchange Commission, the ride-hailing company said the lay-offs would cost it $27mn-$32mn in restructuring fees and severance packages.

The job losses are a sign of how darkening economic conditions are forcing tech companies to cut costs and build buffers to cope with a slowdown in consumer spending.

Beth Galetti, an Amazon recruitment director, told employees on Wednesday that the company would pause “new incremental hires in our corporate workforce” in an effort to “balance our hiring and investments with being thoughtful about this economy”. As ecommerce soared during coronavirus pandemic lockdowns, Stripe, an online payments processor founded by Irish brothers Patrick and John Collison in 2010, became the most valuable private company in Silicon Valley in 2021 with a valuation of $95bn.

Mentioning “stubborn inflation, energy shocks, higher interest rates, reduced investment budgets and sparser start-up funding”, Patrick Collison said on Thursday that this quarter`s earnings reports provided “lots of examples of changing circumstances” for tech companies. Tech stocks plunged last week after Alphabet, Microsoft and Meta reported disappointing third-quarter results.

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