Economic uncertainty starts to hit tech job market, with reports of slowing hiring, cancellation of offers – GeekWire

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As some companies start to dampen job growth, personal tech job seekers are starting to feel fears of an economic slowdown, driven by factors such as inflation and a slump in the stock market.

In some cases, companies cancel job offers after signing, creating difficulties for people who cancel interviews or turn down competing job offers from other companies.

However, recruiters and technology leaders say the impact has not yet spread widely, and much depends on the industry a company operates in and the type of jobs it fills. For example, engineers are still in high demand.

High-tech real estate brokerage Redfin confirmed Friday that it had “made the difficult decision to freeze hiring and eliminate a small number of jobs” to quickly adapt to “economic uncertainty and a rapid cooling of the housing market caused by the fastest jump in history” on the interest rate. “

“We extend our sincerest apologies to those affected,” the Seattle-based company said in a statement. “Changing our hiring plans in response to changing conditions is painful, but necessary to keep the company on the path of continued growth.”

A recent UC Irvine Informatics graduate write on LinkedIn The job offer she signed with Redfin in December was cancelled this week, less than a month before she started her job as a product designer in San Francisco.

Facebook parent Meta, which employs more than 7,000 people in the Seattle area, also said on Friday that it was trying to hit the brakes company-wide.

“We periodically reassess our talent pipeline based on business needs and moderate its growth accordingly based on fee guidance given this earnings period,” Meta spokeswoman Tracy Clayton said in a statement. Speed.” “However, we will continue to grow our workforce to ensure we are focused on long-term impact.”

Uber CEO Dara Khosrowshahi widely cited memo last week It was a flashpoint for the tech industry, warning of a “seismic shift” in the market, fueling existing fears that heralded tougher times and tighter seat belts ahead.

some startup CEOs Present at the GeekWire Awards Admitted to reading his message carefully last week. Some said their hiring plans will depend in part on their ability to raise capital in the coming months.

However, raising more cash could become difficult as venture capitalists slow down their investment. “During a downturn, even top VC funds with large sums of money slow down capital allocation,” Y Combinator Write to Portfolio Founders this week.

At the same time, rapid inflation has led some financially sound companies to take steps to retain their best employees. Microsoft announced salary and stock-based compensation changes earlier this week Focus on retaining employees who might otherwise be looking elsewhere.

For engineers in particular, the job market remains extremely competitive.

“Have some companies decided to downsize? Of course,” said Albert SquiresManaging Director of Technology Practice fuel talent in Seattle. “However, the recruitment industry is moving so fast that even with a small drop, engineers are still in higher demand than ever before. Between increased compensation and the housing market, [it’s] It’s hard to imagine it slowing down much over the next six months. “

After sending the message, Squiers followed up with a new message from a company that was planning to make an offer and decided to slow hiring, except for high-priority and business-critical systems due to changing markets.

“However, for every company that closes jobs, it seems like another company opens up,” he added, “and I would still describe Seattle’s engineering labor market as ‘very tight’; because it’s still 100 percent run by candidates People-driven marketplace.”

At the same time, he said, “but obviously things will change very quickly.”

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