Tech Companies Are Revoking Job Offers

Tech companies are rescinding job offers, which hasn’t happened since the 2008 crisis.

In the past few weeks, there have been a growing number of reports that Tech companies are rescinding lucrative job offers.

 

The Breakdown

Coinbase recently published a blog post responding to the current market trends. They mention directly in the blog post that they will be rescinding several accepted offers. It’s an interesting read. I will leave a link to the full article.

coinbase

 

 

Kaeley Lenard, a UX designer, documented her experience ad redfin in a Linkedin post. Read her full post.

ux linked in post

 

One week ago, Muyan Wang also took to Linkedin to write about his experience at Twitter. Read his full post here.

twitter post

 

I could go all day with examples, but as you can see, this is happening at major tech companies, not just at small startups.

 

What Does This Mean?

This is a big deal because while we have seen record levels of low hiring, rescinding job offers on a mass scale hasn’t happened since 2008, which is a clear indicator that leaders believe we are heading into a definite recession.

 

It’s one thing to slow hiring. It’s another to rescind job offers altogether.

 

How To Prepare

It seems the economy and tech are becoming more fearful each week, so now is an excellent time to prepare for the worst if you haven’t already. When I saw the headlines about what Y Combinator was telling its founders, I knew it would likely get worse. Here’s some honest advice to professionals in the space.

To Tech Founders

I understand things are tough but don’t become a headline. If you need to cut your headcount, do so in a humane way. If you are rescinding job offers, consider giving those candidates some form of severance. It’s better than nothing, especially during such a difficult job environment. Those candidates likely rejected other offers as a form of respect and loyalty towards you, so do the same with them.

To Tech Workers

Right now is a challenging hiring environment that I only see getting worse in the coming months, so if you have a job, keep it. For those of you looking to get a new job, remember that nothing is set in stone, including a job offer. Keep your options open, treat yourself the way businesses are right now, have savings, and lower your expenses.

 

Final thoughts

Will it get worse? I hate to be the bearer of bad news, but I think it’s highly likely. We have seen dips in the past, but I’ve never seen giant tech companies rescinding job offers and organizations like Y combinator Issuing warnings to founders. They are running some of the largest organizations in the world and might have insights that we cant see.

 

At the same time, times like this can be some of the best opportunities for small startups. That’s what I will be talking about next Monday, so be sure to check out that next post.

 

Deep breaths and have a great weekend everyone!

 

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