U.S. technology companies are snatching job offers, leaving college graduates

U.S. technology companies are snatching job offers, leaving college graduates

June 22 (Reuters) – During the last week of May, Twitter Inc. (TVTR.N) called one by one some members of its new class of new hires who had recently graduated and withdrew job offers within 15 minutes of the call, according to some recipients.

“It was traumatic,” Iris Guo, a new associate product manager living in Toronto, told Reuters. She received bad news in a video call at 22:45 that her position had been eliminated. She has since raced to find a new job to secure her U.S. work visa.

More than 21,500 technology workers in the United States have lost their jobs this year, according to Laioffs.fii, a website that tracks job layoffs. In May alone, the number of layoffs in engineering rose sharply by 780% in the first four months of this year combined, according to outsourcing firm Challenger, Gray & Christmas.

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But recent graduates such as Guo, who graduated from the University of Waterloo and studied financial management and computer science, represent a new dimension of decline as their emerging careers are eliminated even before they begin. The trend reflects new savings spreading in some parts of the technology industry such as crypto and venture capital companies.

For crypto companies, the tightening of the belt is a consequence of the recent fall in cryptocurrency prices, and venture capitalists are also cutting costs to avoid returning to the market for additional funding, said Kyle Stanford, senior risk capital analyst at Pitchbook.

Crypto firm Coinbase Global Inc (COIN.O) laid off 18% of staff this month, payroll companies Klarna and Bolt Financial together laid off over 900 people, while major names such as Meta Platforms Inc, Lift Inc (LIFT.O) and Uber Technologies Inc. (UBER.N) said they would slow down or freeze employment.

In what seems to be the opposite of the trend of the Great Resignation of 2022, when legions resigned over new jobs, some job-seeking technologists are now facing cutting costs and a freeze on employment amid four decades of inflation, a war raging in Ukraine and ongoing pandemics.

In the case of those who were ready to join Twitter, the whims of billionaire Elon Musk also caused stress. Musk agreed to buy Twitter for 44 billion dollars, but his recent tweets raised questions about when and whether the purchase will be completed. More

Of course, employment in the technology sector as a whole has remained strong, say experts from staffing and consulting firms. Technological roles in the health and financial industries are strong, as are information technologies, said Thomas Wick, regional director of technology practice at Robert Half, Texas.

But for a new class of new hires, losing their job offers is particularly damaging because they said they were excluded from companies such as Meta Platforms, Alphabet Inc. (GOOGL.O) Google and other technology giants, which have already secured their new cohort. recruit.

Lucas Durant, a graduate electrical engineer from Canada, was due to start his new job as a software engineer in Bolt last week. While he was on vacation a few weeks ago, he received an email stating that his offer had been withdrawn. Bolt announced that the dismissals would start at the end of May, stating economic conditions.

“I feel a bit like a race against time before we see a bigger economic downturn,” Durant said. “I will soon compete with people who graduate in 2023.

LIMITED OPTIONS

At least 40 recent graduates have lost their job offers in the past few weeks, according to links on LinkedIn and Google spreadsheets circulating online to help those affected find new positions.

As of Tuesday, 22 recent diplomas are listed in the table as if they had withdrawn offers from Twitter, and nine people are listed in a separate table for Coinbase.

In a statement, Twitter said it acknowledged that withdrawn bids could put candidates in a difficult position and said it offered compensation to those affected.

Coinbase pointed to a blog post on June 2 stating that the decision to withdraw numerous bids was not made lightly, but was “necessary to ensure that we grow only in areas of the highest priority.”

Chloe Ho, who recently graduated from the University of California at Davis and is originally from Hong Kong, has until September 29 to find a new job or will be forced to leave the United States. Ho has accepted the position of content marketing expert at an online grocery company called Veee! before the position was terminated.

As a non-US citizen who needs a new employer to sponsor her work visa, “my options are very limited,” she said.

Ho said she canceled the lease of a new apartment in the San Francisco Bay Area, withdrew from vacation plans with friends and that she will now spend the next three months networking for a new job during the day and applying at night. “I planned everything about this job,” she said.

Many affected graduates went to LinkedIn to express their disappointment, provide details on how the recall offers twisted plans to move through the country, and ask for recommendations for new companies.

Graduates who spoke to Reuters said they were surprised by the level of reach of people offering help. Still, the sting of losing the dream job remained.

One recent graduate who was due to join Coinbase but did not want to be appointed due to constant job search said that just a week before he lost his job offer, he received an email from Coinbase assuring him that the company did not plan to return to existing offers.

“I was disappointed for several reasons. “I did not think that the management would make that decision,” he said.

While companies may be saving some money in the short term, they risk “potentially catastrophic” damage to their reputation, said Brian Crop, a respected vice president of Gartner’s human resources practice.

“Just imagine how unfair it is to the people from whom you are withdrawing your offer,” he said. “You’re putting them in a painful situation.”

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Reporting by Sheila Dang in Dallas Editing by Kenneth Lee and Matthew Lewis

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