Twitter accidentally fired essential personnel…
Tesla CEO Elon Musk hurriedly fired a large number of people shortly after the acquisition of Twitter, but later asked for a return after realizing that some essential workers were included.
In addition, as major information technology (IT) companies such as car-sharing company Lyft and online payment service Stripe are cutting jobs due to concerns over an economic recession, start-ups that have been struggling with job shortages are hiring talent from these companies.
According to Bloomberg and the Wall Street Journal, Twitter asked dozens of employees to return immediately after firing 3,700 people, about half of the total employees, on the 4th.
Bloomberg quoted anonymous sources as saying that the employees who were asked to return were notified of job cuts by mistake or were belatedly identified as essential personnel needed to develop new functions Musk had envisioned.
Earlier, Twitter notified them of their dismissal by e-mail, and many employees found out that they had been fired because of the sudden suspension of their use of in-house email and corporate messenger Slack.
Bloomberg pointed out that the request for a return clearly shows how urgent and confusing the dismissal was.
In the meantime, WSJ says the restructuring of these IT companies is an opportunity to hire talented people for early-stage startups that have been struggling with manpower shortages.
Lyft and Stripe cut 700 and 1,000 jobs on the 3rd, respectively, and Twitter fired 3,700 on the 4th, the next day.
Early start-ups have not yet released products or services on the market, so they are relatively less affected by rapid interest rate hikes, inflation, and supply chain disruptions than large or mid-sized IT companies.
However, some observers say that even if the talent pool overflows, the employment boom by start-ups may not occur.
Kyle Stanford, senior analyst at data analysis company Fitchbook, said, “Even well-funded start-ups need a strategic approach to recruiting talent than a year ago,” adding, “Sustainable growth should be considered first.
In addition, the WSJ added that competition for IT workers remains, with the number of job openings in the U.S. in October, up 10,000 from last month to 317.