Why are tech companies slowing down recruitment?

It’s no secret that many UK businesses are facing the battle of managing existing hires post pandemic, but recruitment has also been an issue. Tech has become the latest sector to slow down recruitment, due to inflation amongst other factors. 

The demand for software and web developers has grown across the UK, and businesses are adopting hybrid models to meet demands and appeal to employees’ needs. Across Europe, various tech firms and startups are experiencing much more difficulty. In February, UK startup Hopin made 12% of its staff redundant.

Intel, Microsoft and Nvidia are the most notable names to announce a halt in their recruitment process. The rising threat of inflation has had an immediate effect on the economy and the cost of living has weighed heavy of millions of workers. Whilst Nvidia have halted plans to bring in any new recruits for the time being, part of the reason for that is to complete the onboarding process of thousands of new hires they have already made. They have turned their attention to budgeting and the welfare of current employees. 

Microsoft alerted workers about the global market downturn, and as a result, told staff to be cautious about recruitment. 

"As Microsoft gets ready for the new fiscal year, it is making sure the right resources are aligned to the right opportunity. Microsoft will continue to grow headcount in the year ahead and it will add additional focus to where those resources go," a Microsoft spokesperson told CNBC. 

Intel have also paused all hiring and placing all job requisitions on hold in its client computing group, according to a memo sent out to the workforce. A decision on future hires is to be made by the hierarchy after reviewing priorities. However, the company is committed to honouring all job offers in the meantime. As well as making recruitment changes, Intel have also made some minor adjustments to cut costs. These include conducting virtual meetings when possible and limiting participation in industry conferences. 

"Increased focus and prioritisation in our spending will help us weather macroeconomic uncertainty, execute on our strategy and meet our commitments to customers, shareholders, and employees." Intel said in a statement to Reuters.