Some US firms have announced hiring slowdowns and layoffs in recent weeks amid fears of recession
As top tech companies prepare to release their quarterly earnings reports starting next week, investors are bracing for bad news.
Several US tech companies have announced hiring slowdowns and layoffs in recent weeks, and the difficulties are expected to continue. “It’s not a great time for tech in general,” said Paul Verna, an analyst at Insider Intelligence, a market analysis firm. “There is no question that companies are going to be spending less, cutting back budgets, and maybe implementing hiring freezes. None of that is good news for the next quarter.”
Netflix, Meta, Google, Twitter and Tesla all have earnings calls scheduled in the next weeks. The reports will come amid growing fears of a recession as inflation continues to rise. On Wednesday, the US Labor Department released new data that showed the consumer price index rose 9.1% in June from the same month a year earlier, marking the largest gain since 1981.