Companies are using layoffs to cut new-hire salaries and win back the power they held before the pandemic.
"Yes, there is an economic downturn, but I do think there's a lot to be said about companies making strategic decisions to put power back in their hands and put their foot down," an anonymous user said per BI.
"Now the companies that are hiring are taking weeks and months to fill roles and they want to make sure they hire the cheapest person," said a user on BI. "It's 'take it or leave it.'"
Recently, LinkedIn is one example.
LinkedIn once said it wasn't planning to let go of staff but rather freezing its hiring. Still, the company has recently laid off employees within its recruitment recruiting department, as the layoffs reportedly started on Feb 13.
The Information reported that LinkedIn started letting go of employees within its recruitment recruiting department as part of the broader plans of Microsoft. This comes despite previously giving a statement to CNBC TV18 on Nov 2022 regarding how they didn't plan any layoffs.
LinkedIn CEO Ryan Roslansky's statement shared how they were focusing on freezing hiring, but they have not yet announced any layoffs. The CEO shared how they are still navigating the global strategy needed for the platform to continue.
Roslansky: “We haven't announced ... any kind of layoffs. We have put ourselves inside of a hiring freeze right now for various parts of the company."
