10 May It’s here…
Photo by Jasmin Sessler on Unsplash
I’m thinking of a sign I saw once that read, “In God we trust. All others we verify.” In similar fashion, I think it’s important not to panic but to also be prepared.
On Monday, I published the post “The Bear is Back.” I wish I could tell you otherwise, but I’m seeing cracks in the market already. Companies going on hiring freezes. Projects getting cancelled. Companies looking for the cheapest options possible to get a job done.
Also on Monday, LinkedIn published the article, “Uber puts the brakes on hiring,” which you can find here: https://www.linkedin.com/news/story/uber-puts-the-brakes-on-hiring-4785929/. In the blurb, editor Jessica Hartogs writes:
“Uber CEO Dara Khosrowshahi has told his employees that hiring will be a ‘privilege,’ reports CNBC, citing an email it obtained from the company. The ride-hailing company will cut the amount spent on marketing and other incentives, becoming ‘even more hardcore about costs across the board,’ according to the email sent Sunday by Khosrowshahi. As markets get roiled, Uber is not the first tech company to announce a slowdown in hiring; Facebook parent Meta said last week that it would stall hiring for senior roles.”
Wow. How quickly we shifted from The Great Resignation to hiring is a “privilege,” huh.
The article on LI references one from Business Insider, which you can find here: https://www.businessinsider.com/uber-ceo-dara-khosrowshahi-cutting-costs-hiring-privilege-incentive-spend-2022-5. From said BI article:
“Uber CEO Dara Khosrowshahi has told staff the company will rein in spending across the board to focus on investor returns.
The ride-hailing and delivery group will treat hiring as a ‘privilege’ and pull back on the ‘least efficient’ incentive and marketing spend, Khosrowshahi said Sunday in an email to employees, obtained by CNBC.
‘In times of uncertainty, investors look for safety,’ he wrote. ‘Channeling Jerry Maguire, we need to show them the money.'”
That puts it into perspective, doesn’t it? The investors need to see the money. Further clarification is made a couple of paragraphs down:
“Khosrowshahi said in his Sunday email he’d spoken to investors after the earnings and it was ‘clear that the market is experiencing a seismic shift and we need to react accordingly.’
‘The average employee at Uber is barely over 30, which means you’ve spent your career in a long and unprecedented bull run,’ he said. ‘This next period will be different, and it will require a different approach.'”
Damn. I was hoping my bearish predictions would be wrong, but increasingly, I don’t think so. At the beginning of April, I published a post titled, “When the Pendulum Swings,” which you can find here: https://causeyconsultingllc.com/2022/04/04/when-the-pendulum-swings/. Why? Well because even then, I could sense the pendulum was about to swing from a bull market where job seekers, employees, and home sellers were in charge to… the opposite side of the spectrum. Now here we are.
+ Zillow’s stock is sliding and the outlook for the housing market is getting grim. (https://www.marketwatch.com/story/zillow-stock-slides-to-2-yaer-low-wall-street-keeps-slashing-targets-amid-dour-housing-market-outlook-11651861545)
+ We’re seeing companies either implementing hiring freezes or performing layoffs. (https://www.businessinsider.com/layoffs-sweeping-the-us-these-are-the-companies-making-cuts-2022-5)
+ People are finally using the term bear market. (https://finance.yahoo.com/news/analysis-whispers-p-500-bear-163856426.html)
OK… don’t panic… but… what now?
I’ve talked before on my podcast about doing what the crisis demands. We all have times in life where we get hit with an unforeseen expense or a problem that leaves us financially pinched. You don’t walk around with a spirit of fear but you also don’t bury your head in the sand either.
- Talk to a professional financial planner or advisor.
When in doubt, seek professional guidance.
- Decide if it makes sense to try to job hop one more time or if you need to job stay and ride out the wave.
Only you can make that decision for yourself.
- Stay aware of the markets.
I don’t advocate for relentlessly watching the news 24/7. But it’s smart to keep a general eye on what’s happening.
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