The balance of power is shifting in the tech industry
CNN
For much of the past decade, tech companies have showered their corporate employees with money and lavish perks to attract and retain talent in a hyper-competitive industry. That dynamic only kicked into overdrive the past couple of years amid a pandemic-fueled boom for tech products and services.
"The hiring ... was off the charts, paying [salaries] that were probably too high or out of range, where companies would hire four or five people for a sales position when they really only needed two," said Bill McHargue, founder of San Francisco-based recruitment firm Talent House.
But the situation has started to cool as the tech industry and the broader economy have been hit by the perfect storm of inflation, rising interest rates, fears of a recession and Russia's war in Ukraine. A wave of tech companies that had been aggressively hiring, from Netflix (NFLX) to Coinbase, have announced layoffs in recent weeks. Many others are also moving to cut costs, with Uber (UBER), Lyft (LYFT), Snap (SNAP), Twitter (TWTR) and Apple (AAPL) all planning to slow or pause hiring.