My contacts at a few of my target organisations recently followed up with me, and both confirmed that their product teams are experiencing a hiring freeze.
With the present macroeconomic climate and forecasts for a recession, I’m curious to know if this is a trend across industries.
I’m trying to evaluate if now is a good time to start recruiting.
Several of the larger venture-backed or post-IPO companies seem to be catching up whereas the majority of series A and B organizations appear to have hit a wall last month. I think a big player has publicly announced a hiring freeze, and some people speculate that much of the “efficiency” discussion at last week’s all-hands meeting was a prelude to them beginning layoffs.
Do you mean businesses you’re specifically looking to work for when you mention “target companies”? I didn’t want to assume something just because I had never heard of it and would later find out I was mistaken.
Sorry @NaomiNwosu, should have been clearer, my target companies (mid-size fitness tech), not general.
It’s not uncommon for companies to implement a hiring freeze during uncertain economic times. The COVID-19 pandemic has caused significant disruption across industries and has resulted in many companies reassessing their hiring needs. In addition, predictions of a potential recession could also impact hiring decisions.
However, it’s important to note that every company’s situation is unique, and some may continue to hire despite the challenging economic environment. It’s possible that the companies you contacted are experiencing specific challenges or have made a strategic decision to pause hiring for a certain period.
If you’re looking to start recruiting, it’s essential to do your due diligence and research the companies you’re interested in working with. Keep in mind that the current economic environment may mean that there is increased competition for open positions. However, it’s also important to remember that companies will always need talented individuals to help them navigate through challenging times.
Ultimately, whether or not to start recruiting is a decision that should be based on your individual circumstances, goals, and market research. It may be helpful to have a conversation with a recruiter or industry expert to gain insights into the current hiring landscape and to get advice on your job search strategy.
I’m sure large companies are experiencing this, but I’m not sure how this is playing out for startups or smaller businesses. I’d also like to know if it’s Series C or earlier.
The impact of the current macroeconomic environment and predictions of a recession on hiring freezes is not limited to large companies alone. Startups and smaller businesses are also facing similar challenges, and some may also have implemented hiring freezes or slowed down their hiring processes.
In terms of the stage of the company, it’s possible that companies at different stages of growth may be impacted differently. For example, early-stage startups that have recently raised seed funding may be more cautious in their spending and hiring decisions, whereas companies that have raised a significant amount of funding or are already profitable may continue to hire as usual.
However, it’s important to note that each company’s situation is unique, and it’s challenging to make generalizations about hiring freezes across different stages and types of companies. It’s always best to research and reach out to individual companies to understand their hiring situation.
The current economic environment may impact hiring across companies of various sizes and stages of growth, but the extent and duration of these freezes may vary. It’s important to stay informed and connected to the job market and individual companies to make informed decisions about your job search.
We recently learned about this (Hiring Freeze/Layoffs) from around the organization. a medium-sized enterprise. It seemed like product and UX were particularly heavily struck.
Current sentiments from investors in early-stage startups is similar to bigger startups - to keep runway for at least 2 years.
If you’ve been closing funding since the recession reality has been looming (past few months) your future is still pretty well funded for those two years and you likely won’t be cutting costs. But the common advice is to invest in your current A talent with funds and slow down hiring. Hiring is still a thing for sure for growing companies, but it’s not like it was the past few years. Hire what you need, knowing that the next round isn’t guaranteed like it was before. It does depend on how big your round is, but most investors would be pissed about any burn multiples greater than 3 and angry about them above 2. There’s a lot of partners (who invested in the funds - but don’t manage it) pushing for fund managers to stop spending right now too. So if the company hasn’t closed funding recently it’s not a sure thing it will happen for series A-B (pre-seed and seed investments are pretty much viewed as the safest investments right now)
This is generally what I’ve come across as a cofounder who just closed a round last month and is in two accelerators. My friends in PE and VC basically say the same. There’s definitely exceptions, but generally people are being told to slow down hiring a lot and keep your runway - which a lot of orgs have already over leveraged themselves and we’re counting on another round this year that they might now get (or at least have a down round).
I’m sorry to hear that your company has implemented a hiring freeze across the whole organization, including product and UX. While it can be difficult to hear this news, it’s important to remember that this decision was likely made with the company’s long-term stability in mind. A hiring freeze can be a way for a company to conserve resources and weather economic uncertainty.
As a product or UX professional, this may be a challenging time to find new opportunities. However, it’s important to stay engaged with your industry and network, as hiring situations can change quickly. You may also want to consider taking on freelance or contract work, or exploring opportunities to enhance your skills or knowledge through courses, certifications, or personal projects.
If you’re able to, it may also be helpful to have a conversation with your manager or HR representative to understand the company’s plans for the future and how you can continue to contribute to the organization during this time. Keeping lines of communication open can help you stay informed and connected to your team and company culture.
In any case, I wish you the best of luck as you navigate this challenging time.
There is a growing trend of a bunch of people getting fired, so yes, it IS true…
Hiring is “frozen” at most tech names, for now, but if you have a network, the insiders still have budgets (particularly big tech) and are severely under-resourced.
TLDR, if you have skills, offer help as a consultant to those who are short handed.
That’s a great point. While many companies may have implemented a hiring freeze, there may still be a need for additional resources to help with ongoing projects or initiatives. Offering your services as a consultant or contractor could be a way to provide value to companies that are short-handed and need extra help.
If you have a network or connections within a specific industry or company, it may be worth reaching out to see if there are opportunities to offer your services as a consultant. You can leverage your existing skills and experience to provide value and help companies continue to move forward with their projects.
It’s important to note that consulting or contracting may not be a long-term solution, but it could be a way to stay engaged with your industry and earn income during a challenging time. Additionally, it can be a way to build relationships with potential clients that could lead to future opportunities.
As with any job search strategy, it’s essential to do your due diligence and research potential clients or projects to ensure they align with your values and interests. It’s also important to negotiate contracts and rates that are fair and mutually beneficial for both parties.
My company is still conducting interviews for crucial backfill positions, but there has been a notable slowdown in net new headcount.
@DamianMarshall, it’s good to hear that your company is still conducting interviews for critical backfills, despite a slowdown in net new headcount. This could be a sign that the company is prioritizing the maintenance of its existing infrastructure and products over expansion or growth.
While it may be frustrating to see a slowdown in net new headcount, it’s important to remember that many companies are facing economic uncertainty and may need to be cautious in their spending and hiring decisions. Additionally, maintaining the current workforce can be a way to ensure stability and continuity during a challenging time.
If you’re currently job searching or looking to make a career move, it may be helpful to stay informed about industry trends and specific companies’ hiring situations. It’s possible that some companies may be more active in hiring than others, even within the same industry.
In any case, it’s important to stay engaged with your network, continue building your skills and knowledge, and keep an open mind about potential opportunities that may arise. The job market can be unpredictable, but by staying informed and adaptable, you can position yourself for success in the long run.