Companies Are Making Drastic Change After Economic Downturn
(DailyVantage.com) – With the economic uncertainty and costs rising everywhere, many experts seem to think the conditions are right for an eventual recession. This potential has led many companies to adjust their strategies and cut costs so they might weather the storm. Many large retailers, for example, are slashing product costs to clear inventory. However, there’s another worrying trend — the rescinding of job offers.
Two major business sectors primarily fostered the practice of retracting the offers: tech companies and startups. Twitter, for example, withdrew a job offer made to 23-year-old Iris Guo, causing her to lose out on $180,000 annually. To add insult to injury, she had turned down several jobs before accepting the social media company’s offer.
Employers are now looking at revoking job offers as a strategy akin to layoffs. https://t.co/0FZh7KwSr3
— Emily Peck (@EmilyRPeck) June 9, 2022
While companies look at this practice as better than layoffs — Twitter and Coinbase are still paying severance packages to those from whom they withdrew offers — some, like Guo, believe it’s unprofessional and makes the companies look bad.
In addition to rescinding offers, many companies are opting for hiring freezes. Others, like Uber, say they’re treating hiring as “a privilege.” For those worried that this might happen to them, it’s important to note that reports so far mostly see this happening in the tech industry. It should hopefully abate as the economy recovers.
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