Uncertainty in the world means more than an anxious society — it typically precedes economic unrest.
Even for the world’s largest and most successful companies, inflation and other global affairs are enough to cause Big Tech to pull the reins in on their usual lavish amenities.
Companies like Google and Meta are prime examples. Both have slowed down hiring, stripped some employee perks and started team restructurings in an effort to alleviate costs.
Simultaneously, service workers have never been busier. As consumer demand for in-person activities skyrockets, it appears that these industries could stay afloat during what economists are now calling a “white-collar recession.”
Prior to this new phenomenon, industry giants were actually conducting hiring sprees as demand for services soared following widespread vaccinations. However, now they are dealing with the consequences of too many employees and not enough demand.
“At companies like Facebook and Google, for the longest time expenses were unlimited,” said one Meta executive, who recently exited the company. “There was a lot of fat in the organizations. It’s very healthy to cut that fat. … The party is over.”
Despite cutting what they now believe is excess, executives like Google CEO Sundari Pichar are still encouraging current employees to work with “greater urgency, sharper focus, and more hunger than we’ve shown on sunnier days.”
Messages like this do little to ease the fears of layoffs in the future, instead creating an atmosphere of even more tension that hasn’t been seen during the onset of the pandemic.