Recession looming: Tech giants freezing hiring

The damage from the #COVID19pandemic, the Russian invasion of Ukraine has magnified the slowdown in the #globaleconomy, which is entering a long term of feeble growth and elevated inflation. Stocks have tumbled across Europe, as soaring inflation puts pressure on central bankers to raise interest rates even more aggressively. With the US dollar in demand, the pound has sunk below $1.18 for the first time since March 2020, early in the pandemic.

As per Forbes, the Inflation stocks - which predominantly includes companies from the banking, insurance, consumer staples, oil and gas sectors - has declined by about 8% over the last month, marginally underperforming the broader S&P 500.

Finance Minister #NirmalaSitharaman, including the US, said that global tech companies are in panic due to fear of an economic slowdown in developed countries. After putting brakes on job cuts and hiring by tech-social media companies like Microsoft, Google, Facebook (meta), Oracle, and Twitter, Apple has now joined the list of these companies.

While the U.S. Federal Reserve took some time to respond to inflation, starting with a 0.25% rate hike in March 2022, it is getting more aggressive with its monetary policy tightening, after inflation numbers for May came in higher than expected. The central bank raised rates by 0.75% in June, its largest hike since 1994.

Let's look into how the global tech companies are pulling back.

Alphabet Inc. has decelerated their recruiting efforts. According to an internal memo, Chief Executive Officer Sundar Pichai told employees that- although the business added 10,000 Googlers in the second quarter- it will be slowing the pace of hiring for the rest of the year and prioritizing engineering and technical talent.

Amazon.com Inc. said in April that it was overstaffed after ramping up during the pandemic and needed to cut back. "As the variant subsided in the second half of the quarter and emp

#APPLE#twitter#google#FinanceMinisterNirmalaSitharaman#uidai#Microsoft#globaleconomy#Oracle#Varindia#RohitKapoor#Covid19Pandemic#PLIscheme#facebookmeta#RussianinvasionofUkraine#varindianewshour#Recessionlooming#ElectronicsandInformationTechnologyRajeevChandrasekhar

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