Yahoo Finance reporter Dani Romero explains how more and more companies are slowing hiring and even canceling job offers, especially companies that have hedged their bets on remote work only.
DAVE BRIGGS: One by one, companies are starting to cancel job offers. The latest move to cut costs amid growing fears of a coming recession. For more, let’s bring Dani Romero from Yahoo Finance here with us in the studio. Nice to see you, Danny. What are we learning?
DANI ROMERO: Oh, nice to see you both.
DAVE BRIGGS: Yes, in the studio.
DANI ROMERO: It’s really nice to be in the studio.
DAVE BRIGGS: Welcome.
DANI ROMERO: Well, an increasing number of companies, as you said, have started canceling offers. Twitter, we see Twitter. Coinbase is another. Redfin and other companies, eg Netflix, Peloton, Carvana, have actually announced layoffs. And big tech companies are jumping on the bandwagon too. Facebook, Uber, they warned that they were slowing down — slower — slower. They slow down.
DAVE BRIGGS: Slow-down. We are with you.
DANI ROMERO: They slow down…
DAVE BRIGGS: Happens to me all the time, man.
DANI ROMERO: –slow down their hiring approach. But the big question is, where are we really seeing this big decline and in what sector exactly? Well, I spoke with a vice president of a human resources company, Gartner, who says…hear what he has to say about the biggest change.
– So the places where we’re actually seeing more rescinded deals, more tech layoffs, are those companies that are betting really heavily on the false assumption that we’re going to be in a totally distant world. Were not. We are going to be in a strongly hybrid world. And that’s a subtle but important distinction. That’s why we’re seeing some of these layoffs, some of these offers being rescinded. They are more concentrated in heavy distance betting types of businesses.
DANI ROMERO: So you can hear here that these companies really outgrew it and didn’t really expect employees and consumer behavior to really change. So it’s… I mean, it was kind of interesting to hear that we’re… that these companies have really thought about this too much, haven’t they? And we are coming out of the pandemic, therefore.
DAVE BRIGGS: This is a very interesting point. Rachel?
RACHELLE AKUFFO: I mean, it’s such a big change. Obviously, the focus was on the big resignation. Even Beyoncé’s new track, “Break My Soul,” is an ode to the Great Resignation. Talk about quitting a job and burnout. What about some of these university graduates who are now entering this market? How strong are they at this point?
DANI ROMERO: That’s a very good question. I was talking with my brother, who is a college graduate. And he was telling me that it’s a big, big problem right now. He actually moved to Wisconsin for training. And now he’s back in California, ready to start his new job. But again, speaking to Gartner, he said that with companies canceling these offers, it really damages the reputation of these companies.
And the other thing with that is that the employees who are currently in this company will then also rethink, what is my relationship in this company? Will I lose benefits? What will happen to my salary? So there is this great concern around economic uncertainty. And I think that’s the main thing right now, with employees and employers.
SEANA SMITH: And Dani, very quickly, I mean, it’s also interesting how these companies or how these employees reacted to this because I was reading the Wall Street Journal article, and she was saying she quit his work. His next job offer has been rescinded. So she said, if I ever change jobs again, I won’t quit until I get into the next company. So something to think about if you don’t necessarily trust your next employer completely until you’re in the job on day one.
DANI ROMERO: Yeah, and what’s it really gonna take, right? What do you need? Do you need a bit more of a bonus? Where are you going…it really depends on your offer letter, doesn’t it? What does your letter of offer say at that time?
DAVE BRIGGS: Get it in writing.
SEANA SMITH: Yeah, put it in writing. Sign it.
DAVE BRIGGS: Get it in writing. That’s my advice.
SEANA SMITH: Yes exactly.
RACHELLE AKUFFO: Be sure to sign on this dotted line. Many thanks to Dani Romero from Yahoo Finance.