TikTok lays off staff while Apple and Goldman Sachs plan hiring slowdown as economic outlook dims

TikTok has cut staff while Apple and Goldman Sachs will slow hiring as economic downturn concerns dampen confidence. 

TikTok laid off US staff and told European employees their jobs were at risk as part of a global restructuring move, the Wired reported. Some UK employees were informed that job losses will occur in several departments within TikTok, according to the publication.

Sources told City PM that a small number of roles in marketing and operations shifted in focus as TikTok made adjustments to some teams to better align with business objectives. Those employees were encouraged to pursue internal mobility opportunities while only one employee was impacted by the reorganisation in the US. “This is not part of a broader change within the organisation,” the sources said.

Meanwhile, Apple will reduce hiring and spending on some teams next year, according to Bloomberg, with Goldman Sachs to also slow down hiring while bringing back annual performance reviews.

“Given the challenging operating environment, we are closely re-examining all of our forward spending and investment plans to ensure the best use of our resources,” Goldman CFO Denis Coleman said in a call with analysts on Monday, Yahoo Finance reported. 

“Specifically, we have made the decision to slow hiring velocity and reduce certain professional fees going forward.”

The tech titans and banking behemoth joins major companies like Coinbase, Tesla, Google, and Netflix who have cut staff or reduced hiring as soaring inflation and recession fears dented confidence and made companies more cautious. Goldman Sachs CEO David Solomon said inflation is “deeply entrenched in the economy.”

“I expect there’s going to be more volatility and there’s going to be more uncertainty and in light of the current environment we will manage all our resources cautiously,” the bank’s chief said on Monday’s earnings call.

Goldman Sachs saw second quarter profits plunge to $2.8bn (£2.4bn), down 48 per cent from $5.3bn (£4.5bn) in the same period last year as investment banking revenue declined. Businesses have put off listing and debt issuance plans as concerns over the global economic downturn mount.

Meanwhile, Apple’s hiring slowdown arises from a move to be more careful during uncertain times but isn’t a companywide policy, Bloomberg reported. The decision will not affect all teams and the iPhone maker is still planning a significant product launch next year. 

Apple shares are down about 17 per cent while Goldman Sachs’ stock is currently down more than 21 per cent for the year.

Goldman Sachs and Apple did not immediately respond to City PM’s request for comment.