Category: news

Tech companies were responsible for the highest number of redundancies in September

According to GlobalData, around 90 companies announced layoffs in September 2022, which is a considerable increase from the previous month. The data and analytics company’s News Database notes that this reduction in labor is a result of negatively impacted business sentiment amid cost cutting, high operating expenses, and the current economic crisis.

According to GlobalData’s Job Analytics Database, the number of jobs available for application (‘active jobs’) continued to fall in September 2022, as the pace of job closures and removals from career pages (the ‘jobs closure rate’) was higher than the rate of new job postings. The research also indicates that many companies are planning to restructure or realign their businesses, which could result in employees being laid off. In September 2022, companies that laid off employees as part of a restructuring strategy included Netflix, Meta, Wipro, HCL, Twilio, Credit Suisse, and Snap.

Furthermore, according to GlobalData’s latest report, ‘Global Hiring Activity – Trends & Signals Q3 2022’, over 300 companies announced layoffs during the quarter ending September 22.

Sherla Sriprada, Business Fundamentals Analyst at GlobalData, commented: “Of particular interest is Meta, which announced both a hiring freeze and team restructuring to reduce expenses and realign objectives. The company’s job postings fell by 23% in September 2022 over January 2022.”

Rachel Foster Jones, Thematic Analyst at GlobalData, said: “Meta’s headcount shows no sign of increasing this year. The company, like much of Big Tech, is trying to cut costs as it grapples with a weak advertising environment and a tough macroeconomic climate. This is the tip of the iceberg for Meta. Meta is also facing fierce competition with Tiktok, regulatory hurdles and an incredibly costly and currently unprofitable metaverse ambition. Meta cannot afford to cut its hiring freeze short.”

GlobalData’s research indicates that technology companies were responsible for the highest number of layoffs in September. For example, tech company Twilio, as part of its restructuring strategy, laid off 11% of its workforce. The company’s job postings also fell by 72% during the same period.

The banking & payments industry was another key sector affected by layoffs.

Sriprada continues: “Credit Suisse laid off 5,000 employees as part of a restructuring plan, with the company’s job postings falling by 32% in September 2022 over January 2022. Meanwhile, the Goldman Sachs Group laid off 25 investment bankers in Asia. However, job postings rose in India (22%), Singapore (16%), and Hong Kong (8%) in September 2022 over January 2022.”

In the retail industry, Rent the Runway is planning to restructure, which will involve streamlining its organizational structure and increasing operating efficiencies. The company also witnessed a drop of 74% in job postings in September 2022. Other companies experiencing the strain include The Gap, PVH, and Wayfair.

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Hires and quits decrease

US job openings rose 4.3% in September from August, and they were up 0.4% year over year, according to data released today by the US Bureau of Labor Statistics. However, the number of hires fell and fewer people quit their jobs in September.

Julia Pollak, Chief Economist at ZipRecruiter said: “The JOLTS report says that job openings rose to 10.7 million, but other measures in the report suggest the labor market is cooling. Hires fell from 6.3 million to 6.1 million and quits from 4.2 million to 4.1 million.”

Hires were down 4.0% in September compared to August and were down 6.5% year over year.

The number of quits — which are included in separations and are voluntary on the part of employees — fell by 2.9% from the previous month and were down 4.5% year over year.

Layoffs and discharges fell as well by 10.9% from the previous month and by 5.5% year over year.

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Nearly all major tech firms have slowed headcount growth

Microsoft Corp. has announced layoffs across multiple divisions, according to media reports, joining many other tech firms that have cut staff in the unsettled economy.

Microsoft declined to say how many jobs had been cut, but a source told Axios that the layoffs numbered under 1,000.

In a statement to Axios, the tech giant said: “Like all companies, we evaluate our business priorities on a regular basis, and make structural adjustments accordingly. We will continue to invest in our business and hire in key growth areas in the year ahead,”.

The move is yet another example of large tech companies cutting jobs after earlier moving to slow or freeze hiring as the broader economy cools, Axios reported. Nearly all the major tech firms have slowed headcount growth, with many freezing all but essential hires. A number of companies have already moved to cut jobs, including Snap and Flipboard.

Microsoft has not said how many people had been laid off, nor which departments were impacted. However, The Washington Post reported layoffs affected the wargame simulation division and the Xbox gaming division.

Microsoft had 221,000 employees as of June 30, an increase of 40,000 people or 22% from the same point the prior year, GeekWire reported. It was the largest annual increase in employment in Microsoft’s history, based on data tracked by GeekWire.

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74% of SMEs fear inflation and rising energy costs are a threat to their business 

A report by Energy Live News has revealed that many small businesses are ‘struggling to stay afloat’, and it’s anticipated that ‘nearly 53% of small companies expect to stagnate, downsize or fold in the next year’ as a result of the energy crisis. CIPS also reported that 74% of SMEs said energy bills, inflation, and rising living costs are a long-term concern for their business. As a result, startups are failing; between January and March 2022, there were 205,171 new incorporations and 150,810 dissolutions in the UK.

With a lack of time, funds and resources at their disposal, SMEs are looking for innovative ways to save money and digitise previously costly services, leaving funds available for other areas of the business. Digital solutions such as Docue, Xero and Hubspot have seen a year-on-year growth in users, as more SMEs look to go digital and reap the benefits of centralising and organising large areas of their business. Docue has recently reported its fourth consecutive year of growth in customer subscriptions.

The Workforce Institute at UKG found that ‘the pandemic propelled 87% of the UK workforce into new ways of working underpinned by digital technology,’ and 86% of those surveyed saw how digitisation positively impacted their business. One positive outcome of digitisation is that it’s much more cost effective. Without digitising, SMEs often find themselves with substantial fees for various aspects of the business, including legal and employment contracts and policies.

In an analysis of its most popular startup contracts, Docue, a contract management solution, found that SMEs could save up to £30,000 a year by using its digital platform over traditional legal service. They concluded that the majority of startups will require a minimum of 12 legal documents and that items such as employment contracts, IP assignments and privacy policies can cost small businesses up to £1,500 each when created using a lawyer or law firm.

As such, Docue and digital platforms like it, offer novel solutions, promoting profitability, efficiency and productivity. With Docue for example, startups and SMEs can easily democratise all their contracts and work files, meaning businesses can create layer-grade legal documents and improve quality, validity and accessibility. This cuts the need for multiple, costly systems to edit, sign and store contracts and instead provides a simple solution with access to legal guidance, e-signing software and editable templates, all in one place. Where SMEs and start-ups are facing more and more pressure to save money and scale up quickly, digital solutions provide the answer.

Neil Edwards, VP of sales at Docue, commented: “The current economic crisis may be an unprecedented time for SMEs, who are thus looking to cut time, resources and funding wherever possible. However, digitising previously costly services proves to not only cut costs and leave resources for other sides of the business, but also improve efficiency and productivity.”

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New research reveals biggest time wasters among staff

In 2020, huge UK businesses took to remote work, and 78% of at-home or hybrid workers reported that their work-life balance improved.

A new survey by Reboot Digital PR Agency, was conducted to find out how much time people waste working from home versus in person. The survey looked at 5,265 UK workers aged 18-65.

According to the results of the survey:

  • In-person employees waste up to 4.26 hours per week on non-work-related activities.
  • People who work from home exclusively waste 41% less paid time than in-person workers, at just 2.5 hours per week.
  • Socialising takes up 19.89% of non-work activities, with in-person workers spending over 2.5 times more time socialising (14.32%) than their WFH peers (5.57%).
  • Social media is a top time waster across the board, making up 35.27% of non-work related activities. At-home employees use up 12.04% of their working hours on social media, while in-person workers use 23.23% of their work time scrolling.
  • At-home (11.09%) and in-person (19.91%) employees admit to shopping online, sleeping, playing computer games, and job hunting during working hours.
  • 6.49% of all workers admitted to sex during working hours. Those working from home said sex takes up 5.09% of non-work activities (approx. 3.4 minutes a week), while in-person workers spend 1.4% of their wasted time, or 3.6 minutes a week, engaging in sexual activity.

Debbie Walton, Editor at TALiNT Partners commented: “While I do feel I am far more productive while working at home, there is something to be said about the camaraderie of the team when we’re all together. Collaborating and catching up makes the world of difference to team morale and I do feel invigorated when I leave the office on the days we’re all in together. All working models have their pros and cons. It’s important that everyone finds what works for them and is supported by their leadership teams.”

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Remote jobs listed online falls by 4% 

In the midst of the current economic storm, business leaders are concerned about whether they need to wind back progress in various important areas of working life, such as flexible work (75%), skills development (76%), and employee wellbeing (83%). This is according to new research conducted by LinkedIn.

According to a new analysis of remote job postings on LinkedIn, remote roles are in decline. The data shows that hiring for remote roles peaked in January 2022, with 16% of jobs listed being remote. In September, this number dropped to just under 12%. Similar trends are noted worldwide, indicating that employers are now looking to get their teams back to the office.

The recent LinkedIn study of 272 C-level executives from large organisations across the UK, combined with LinkedIn jobs data, highlighted the growing disconnect between what professionals want and what employers offer. As hiring slows, the balance of power seems to be shifting back to employers.

LinkedIn’s Global Talent Trends report showed that flexible work is top of the list of priorities employees value in employers, with skills development and work-life balance also featured as top priorities. Unfortunately, these areas are all at risk of being scaled back due to the current economic uncertainty.

On the other hand, professionals are pushing back against the old ways of work. Even though 12% of jobs in the UK are remote, they received more than 20% of applications in September 2022.

UK leaders agree that keeping employees motivated and engaged is their first priority over the stormy months ahead. However, there is also a need to recognise that financial strains due to the increased cost of living (49%) and worries over being laid off (33%) are playing on employees’ minds.

While the current situation is turbulent, communication is key. Instead of avoiding tough conversations about difficult decisions, leaders are encouraged to “build bridges to their employees: and take them on the journey with them.

Becky Schnauffer, Head of Global Clients, EMEA & LATAM, at LinkedIn, spoke exclusively to TALiNT International: “As businesses continue to grapple with economic uncertainty, they simply cannot afford to lose out on top talent. With the current climate set to continue for the foreseeable future, business leaders are concerned that they will be left with no choice but to compromise on key value propositions that attracted and retained employees in the first place. In particular, scaling back on flexibility and professional development in response to this economic crisis could create a disconnect between companies and employees, and wind back progress made in the workplace over recent years.

Recent LinkedIn research shows that flexibility is the biggest priority for people looking for new roles in the UK, and our data shows that remote roles receive a disproportionate number of applications – making up less than 12 percent of job ads in the UK, but receiving more than 20 percent of applications. Flexibility is no longer just a nice to have, it’s become necessary for many. And it doesn’t stop there. Internal mobility is another top driver for talent. By providing employees with opportunities to develop their skills internally and focus on their unique career development, talent leaders will not only be better equipped to navigate economic and labour-market volatility – but they will also boost the engagement of existing employees.

Retaining employees is critical to building resilient businesses, and this has never been more important to weather this economic storm. By having a clear understanding of what motivates and inspires employees, employers can build out hiring and retention strategies that will effectively attract and retain top talent.”

Anthony Klotz, Professor of Organisational Behaviour, UCL School of Management, said: “Leaders are caught between the allure of returning to old ways of working, and the challenge of looking toward the future and rethinking how they lead and how their employees work. As LinkedIn’s study indicates, some of those in positions of power are opting out of the opportunity that this moment presents. But it’s those that embrace the mantle of leadership and turn into reality the vision that so many workers can clearly see – a future in which employees’ relationships with their employers are a source of wellbeing – who will come out stronger. It is these visionary leaders who are positioning their companies and their employees to thrive in the long-term.”

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8% of women admitted having experienced sexual harassment at work

A workplace survey recently published by CareerWallet has revealed that 1 in 4 women (24%) are still experiencing inappropriate comments in the workplace or remotely via zoom and email from managers and colleagues. Only 10% of men said they have issues with similar comments meaning more than double the number of women are subjected to this. However, the survey showed that nearly twice as many men (10%) as women (6%) are experiencing homophobic behaviour and comments from colleagues or managers. According to the survey results, these toxic behaviours aren’t just happening in the office with many hybrid workers admitting to receiving comments on zoom calls or over email.

Survey results showed that nearly 1 in 10 women (8%) surveyed admitted having experienced sexual harassment at work and 28% of all women surveyed said they have experienced bullying from colleagues or direct line managers.

The extensive workplace survey gives a stark warning to employers across the UK as millions of workers are not only unhappy in their current roles but even worse are being subjected to aggressive, sexist and homophobic behaviour often from line managers. As firms struggle to recruit and keep the best talent due to mass skill shortages across so many sectors, it is essential employers offer positive and healthy environments for their staff to maximise staff retention rates.

Craig Bines, CEO at The CareerWallet Group, commented, “Our new workplace survey highlights how many employees are not only unhappy in their workplace but also being subjected to extremely toxic behaviour from line managers and colleagues.

It is hugely upsetting to hear so many women being subjected to inappropriate and sexist comments from colleagues and managers, especially in the modern workplace.  It is clear that many employers across the UK need to address their work environments and also consider how staff are being impacted through hybrid working.”

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Hiring slowdown could impact future results

Microsoft Corp. has reported that LinkedIn revenue rose 17% to $3.66 billion in the company’s fiscal first quarter ended Sept. 30. The increase as measured in constant currency was 21%. The increase was driven by LinkedIn’s talent solutions recruiting business.

However, Microsoft warned of a hiring slowdown impacting LinkedIn when announcing upcoming guidance.

Amy Hood, Microsoft CFO commented: “For LinkedIn, we expect continued strong engagement on the platform, although results will be impacted by a slowdown in advertising spend and hiring resulting in mid-to- high-single-digits revenue growth or low to mid-teens growth in constant currency.”

Still, the company reported high levels of engagement on LinkedIn.

Satya Nadella, Microsoft CEO said: “We once again saw record engagement among our more than 875 million members, with international growth increasing at nearly two times the pace as in the Unites States, in the first-quarter conference call with analysts.”

Nadella also noted there are more than 150 million subscriptions to newsletters on LinkedIn, a four-fold increase year over year.

In addition, Microsoft’s acquisition of EduBrite will allow workers to earn professional certificates directly on LinkedIn, the company announced.

Overall, total revenue at Microsoft was $50.1 billion in its fiscal first quarter, up 11% year over year — an increase of 16% in constant currency.

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83% of workers want companies to reimagine corporate learning

According to new research from Executive Networks and NovoEd, the days of learning leaders presenting to an in-person group in a conference room are not over, but eight out of ten learning leaders (83%) reported that the burgeoning hybrid workforce is pushing companies to reimagine corporate learning to meet new ways of work. Nearly six in ten (59%) of the 515 learning leaders at large corporations who participated in the survey believe that hybrid learning is becoming a major part of the learning landscape, not just a temporary trend.

Christina Yu, CMO at NovoEd commented: “Learning leaders are preparing for profound changes as they redesign corporate learning with new delivery methods and rethink how to meet the needs of new audiences. The pivot to online learning and the availability of a greater range of technology and tools that can be integrated into learning initiatives, such as social and collaborative learning platforms, make it easier for real-time interaction between cohorts, experts, and mentors.

In addition, corporate learning organizations are shifting away from focusing on full-time employees with long tenures. Currently, nine in ten organizations (89%) are targeting learning to full-time internal employees. Yet just six in ten (62%) will focus learning opportunities on full-time employees in 2025. Notably, the learning and development audience will expand to include customers, external stakeholders, contractors, gig workers, freelancers, service providers, and workers’ dependents. The biggest jump in training offerings for new audiences will be digital automation workers, which will rise 23% in 2025.

Jeanne Meister, Executive Vice President at Executive Networks said: “The expectation that online and hybrid learning would be a temporary fix during the pandemic changed as hybrid and remote work became a permanent part of the business landscape. The corporate university is no longer a physical space. Learning and development needs to happen where work takes place and learning leaders must place a greater focus on creating blended learning experiences that mirror hybrid work models.”

With in-person corporate learning on the decline and corporate universities transforming into corporate academies, business leaders are re-evaluating how best to revamp their practices, communicate their business value, and repurpose facilities once used for in-person learning and development. When effective, strategic learning capabilities are aligned to the business needs of the organization, learning leaders can go a long way toward ensuring their organizations can compete in an unpredictable and fast-changing environment.

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The specialist TA group is offering consultative services to support clients’ resourcing strategies

Specialist energy talent acquisition group Petroplan has strengthened its Liquefied Natural Gas (LNG) service offering across North America.

Petroplan is exploring a number of opportunities to support LNG development projects and operational facilities, concentrating on operations in the US Gulf Coast, Western Canada, and the Mexico Pacific Coast.

The service is being driven by David Waterfield, Managing Director for North America, supported by newly appointed Senior Client Development Manager, Adrian Kraeger.

With almost 30 years combined experience working on LNG projects in North America, David and Adrian are experts in the field and bring unique insight into the future challenges and demands for LNG operators.

Petroplan is offering consultative services to support clients’ resourcing strategy across all areas including organisational design, compensation, staffing and hiring strategies, immigration solutions, as well as recruitment itself. As LNG access, consumption and production continues to significantly increase and there is an unprecedented demand for staff on these projects, Petroplan’s expertise provides a vital solution to clients wishing to ensure success of their LNG projects.

Christopher Honeyman Brown, Petroplan CEO, said: “With the European energy crisis and ongoing conflict in Ukraine, there is an unprecedented dependency on the global LNG market. To support the increasing demand for LNG, we will continue to strengthen our ability to support clients to resource their operations around the world, and particularly in North America.

“We are delighted Adrian has joined us to support David and the North America team as they continue to provide our clients with our extensive global experience.”

Petroplan has 46 years of global experience in the oil and gas industry, including the delivery of LNG projects for clients in the Middle East and US. Recently, the talent acquisition group has expanded to support LNG projects in the Asia-Pacific region.

David Waterfield, Managing Director for North America, also made comment: “Our unparalleled level of expertise in LNG, in North America and globally, enables us to deliver the best quality services in the region as the world turns to the US for natural gas resources. We look forward to growing our service offering in the region, helping our clients to deliver their projects.” 

 

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