Tech companies lay off workers, slow down hiring amid economic tumult

Plenty of people quit their jobs during the pandemic, but now many workers are being forced out, with more and more companies facing fears of an economic recession, supply chain problems and other woes.

Cryptocurrency firm Coinbase Global Inc. announced it is laying off nearly a fifth of its workforce, or about 1,100 people, and real estate brokerage Redfin Corp. said it will reduce staff by about 470 people, or 6% of the workforce, according to MarketWatch.

They joined Peloton, PayPal, Tesla and Carvana in deciding to slash payroll while employers such as Meta, the parent company of Facebook, Microsoft and ride-sharing companies Uber and Lyft announce hiring slowdowns.

“Everybody needs to batten down the hatches. We are in stormy, stormy seas with choppy weather on the horizon,” Jeffrey Katzenberg, a board member and investor in cybersecurity startup Aura, told MarketWatch.

Market analysts say tech companies, in particular, are responding to fears of a slowdown in demand and rate hikes from the Federal Reserve, which is trying to tame inflation.

Coinbase Global is reeling from plunging cryptocurrency values. The company on Tuesday said its decision to cut 18% of its payroll is part of a restructuring process to stay afloat during the downturn.