As the Federal Reserve pumps the brakes on the economy, many American companies are retrenching. There isthat as the central bank aggressively hikes interest rates to fight high inflation, it could tip the U.S. economy into a recession, and executives are cutting back.
"We don't seek to put people out of work," he said."But we also think that you really cannot have the kind of labor market we want without price stability." For instance, the exercise equipment company Peloton took off when gyms closed. Similarly, Netflix's popularity soared when people were stuck at home, binge-watching TV shows and movies.
"Doing so enables us to be more resilient in hard times, and stronger during the good," he said in a memo to Robinhood employees.Tesla CEO Elon Musk, who reportedly told employees he had a"super bad feeling" about the economy, announced plans to cut the car company's salaried workforce by around 10%.
Crypto.com reduced its staff by 5%, and Gemini, the cryptocurrency exchange run by Cameron and Tyler Winklevoss, reduced its headcount by 10%. Coinbase, which operates one of the largest crypto exchanges in the world, laid off more than 1,000 people, or close to 20% of its workers.."Our employee costs are too high to effectively manage this uncertain market."Another part of the economy that went gangbusters during the pandemic was the housing market.
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