US tech companies offer job offers, college grads scrambling

US tech companies offer job offers, college grads scrambling

June 22 (Reuters) – One after another, in the last week of May, Twitter Inc (TWTR.N) called some of its incoming new staff members who had recently graduated from college and in 15 minutes Job offers were turned down. Calls according to some recipients.

“It was painful,” Iris Guo, an visiting associate product manager who lives in Toronto, told Reuters. He received the bad news in a video call at 10:45 pm that his position had been terminated. Since then, she has raced to find new employment to secure her US work visa.

More than 21,500 tech workers have lost their jobs in the United States so far, according to job cuts monitoring website Leoffs.fyi. In May alone, the number of tech layoffs rose 780% over the first four months of the year, according to outplacement services firm Challenger, Gray & Christmas.

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But recent college graduates like Guo, who graduated from the University of Waterloo and studied financial management and computer science, represent a new dimension to the deduction as their nascent careers end before they begin. . This trend reflects a new austerity widespread in parts of the tech industry, such as crypto and venture capital-backed companies.

For crypto firms, the recent crash in cryptocurrency prices has led to belt-tightening and venture capital-backed companies cutting costs to avoid having to go back to the market for additional funding, said Kyle Stanford, senior analyst for venture capital at PitchBook. he said.

Crypto firm Coinbase Global Inc (COIN.O) laid off 18% of employees this month, payments firm Klarna and Bolt Financial collectively laid off more than 900 people, while major names such as Meta Platforms Inc, Lyft Inc (LYFT) .O) and Uber Technologies Inc (UBER.N) have said they will slow or stop hiring.

In what appears to be a counter-trend to the great resignations of 2022, when veterans left for new jobs, some tech job-seekers are now facing cost cuts and freezes amid four decades of high inflation. There is a war going on and there is an epidemic going on.

Billionaire Elon Musk’s craze has also created tension in the case of people joining Twitter. Musk has agreed to buy Twitter for $44 billion, but his recent tweets have raised questions about when and if the acquisition will be completed. read more

To be sure, recruitment in the tech sector remains strong, according to experts from staffing and consulting firms. Tech roles are strong in the health and finance industries, as well as in the information technology sector, said Thomas Wick, Texas-based regional director of technical practice for staffing firm Robert Half.

But for the incoming class of employees fresh out of college, losing their job offers is especially damaging now because they say they’re out of companies like Meta Platform, Alphabet Inc. (GOOGL.O) Google and other tech giants , which are already protected. His new team of recruits.

Canadian electrical engineering graduate Lucas Durant was set to start his new job as a software engineer at Bolt last week. While on vacation a few weeks ago, he received an email saying that his offer had been canceled. Bolt announced the start of layoffs in late May, citing economic conditions.

“It feels like a race against the clock before we see a major economic downturn,” Durant said. “Very soon, I’m going to be competing against people who graduate in 2023 as well.”

limited options

At least recent college graduates have lost job offers over the past few weeks, according to LinkedIn Posts and Google Spreadsheets that have circulated online to help influencers find new positions.

As of Tuesday, 22 recent grades were listed on one spreadsheet after the offer was canceled from Twitter and nine were listed on a separate spreadsheet for Coinbase.

In a statement, Twitter said it acknowledged that canceled offers could put candidates in a difficult position, and said it was offering compensation to those affected.

Coinbase pointed to a blog post from June 2 stating that the decision to cancel multiple offers was not taken lightly, but was “necessary to ensure that we are moving only in the highest priority areas.” Huh.”

Chloe Ho, a recent graduate from the University of California, Davis, and who is originally from Hong Kong, has until September 29 to find a new job, or be forced to leave the United States. Ho has an online grocery company Weee! Had to accept a position as Content Marketing Specialist! before canceling the post.

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

Ho said he canceled a lease for a new apartment in the San Francisco Bay Area, pulled out of vacation plans with friends and now spent the next three months networking a new job during the day and submitting applications at night. will spend to do so. “I had planned everything around this job,” she said.

Many affected graduates took to LinkedIn to express their dismay, detailing how canceled cross-country moves offer appended plans and asking for referrals to new companies.

Graduates who spoke with Reuters said they were surprised by the level of outreach to people offering help. Yet, the sting of losing your dream job still lingers.

A recent college graduate who was set to join Coinbase, and did not wish to be named due to his ongoing job hunt, said that just a week before he lost the job offer, he had received an email from Coinbase. In which assurances were given that the company did not plan to withdraw the existing offers.

“I was disappointed for some reason. I didn’t think the leadership would take such a decision.”

Brian Kropp, Distinguished Vice President of Gartner’s human resources practice, said that although companies are saving some money in the short term, they are doing “potentially disastrous” reputation damage.

“Just imagine how unfair it is to the people you are turning down the offer from,” he said. “You’re putting them in a painful position.”

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

Our Standards: Thomson Reuters Trust Principles.

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