• Apple Joins other Tech Powerhouses in Limiting Hiring

    Sci & Tech
    Apple Joins other Tech Powerhouses in Limiting Hiring

    The majority of the biggest tech companies are currently only talking about slowing hiring, not job elimination. In addition, job growth in the US as a whole has continued. Payrolls rose by 372,000 in June, more than the predicted 265,000. Jobs in manufacturing were a factor in the growth.

    Digital Desk: "The
    absorption of dollar liquidity is just getting started."



    Authorities are optimistic
    that foreign investors will return to the market in the coming month or so
    following a number of actions taken by the government and the central bank.
    Investors are nevertheless still cautious.



    "Recently, the US
    started to tighten its monetary policy, which would cause foreign exchange to
    leave India. To trade long dollars, I would do so. The rupee must be worth more
    than it should. We can easily get to 84 or 85 before the market turns "a
    second trader added.



    mso-fareast-font-family:"Times New Roman";color:black">The news led to a
    decline in stock prices and increased apprehension regarding this week's start
    of the tech earnings season. It might be difficult for businesses to calm
    anxious investors. Even though International Business Machines Corp. reported
    better-than-anticipated sales growth on Monday, the stock price of the company
    fell in late trading.



    mso-fareast-font-family:"Times New Roman";color:black">The majority of the
    biggest tech companies are currently only talking about slowing hiring, not job
    elimination. In addition, job growth in the US as a whole has continued.
    Payrolls rose by 372,000 in June, more than the predicted 265,000. Jobs in
    manufacturing were a factor in the growth.



    The number of information
    jobs increased by 105,000, or 25,000, in the US from just before the pandemic
    to June.



    However, some tech
    companies are even firing workers. Microsoft is one example of this; the
    company revealed last week that it was restructuring and eliminating some
    positions.



    color:black">Microsoft expects to end the year with more employees than it
    started with less than 1% of its 180,000 employees affected by the reduction.
    It does so, though, after Microsoft decided to cut back on hiring at its
    Windows, Office, and Teams divisions "as Microsoft gets ready for the new
    fiscal year" in May.



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    According to people
    familiar with the situation, Tesla Inc. fired hundreds of employees last month
    and closed a California facility housing its Autopilot self-driving technology.



    color:black">Elon Musk, the company's CEO, previously predicted that layoffs
    would be required as the economy became more unstable. In a later interview
    with Bloomberg, he clarified that while the overall headcount might increase in
    a year, approximately 10% of salaried workers would lose their jobs over the
    next three months.



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    In recent months,
    employers like Netflix Inc. and Peloton Interactive Inc., two former pandemic
    highfliers, have also been cutting staff. A few hundred jobs were cut at
    Netflix in June, and Peloton recently announced plans to end its in-house
    manufacturing.



    Meta Platforms Inc., the
    company that owns Facebook, has reduced spending and slowed hiring for some
    senior-level positions. The business declared plans to reduce spending by $3
    billion this year in April. The plan is to refocus Meta's product teams on key
    objectives, such as the metaverse and its Reels-based TikTok competitor.



    color:black">Additionally, Meta stopped working on one of its early smartwatch
    prototypes and changed the positioning of its in-home video device, Portal, to
    put a stronger emphasis on business clients rather than general consumers.



    Sundar Pichai, the CEO of
    Google, informed staff last week that the company would be slowing hiring for
    the rest of 2022, which is unusual for the internet giant, which typically
    hires tens of thousands of people annually. Through this year and the
    following, Google will concentrate its hiring efforts on technical and
    "other critical roles."



    We need to be more
    entrepreneurial, he said, working with more urgency, clarity, and hunger than
    we have on brighter days.



    Other businesses are
    looking to scale back their aggressive growth strategies without having to make
    significant layoffs.



    During the pandemic,
    Amazon increased its staff to prepare for a spike in e-commerce spending. As a
    result, it is currently overstaffed in its warehouses, though the company
    claims it is working through the issue through attrition.



    color:black">Amazon has halted construction of facilities intended for office
    workers in some cases and is subleasing warehouse space because it is still
    figuring out how much space employees will need for hybrid work.



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    According to Andy Jassy,
    CEO of Amazon, the company decided early on in the pandemic to err on the side
    of having too many employees and warehouse space rather than not enough.



    We were aware that it
    might indicate that we might have more capacity for a moment.



    Whether consumer demand
    has slowed down was a crucial question during the most recent earnings season.
    Apple issued a warning in April that the most recent quarter would be
    difficult, primarily due to supply-chain issues.



    It is anticipated that
    these issues will reduce Apple's sales for the quarter by as much as $8
    billion. When Apple releases its financial results on July 28, investors should
    have a better understanding of the damage as well as Apple's outlook for the
    upcoming months.