In my LinkedIn feed of late, I see a lot of layoffs. Most of those layoffs are talent acquisition roles, some development and design, but largely talent acquisition.
If you’re not familiar with the role of talent acquisition, it’s a fancy way to describe an internal recruiter, someone who seeks out candidates for a company.
Well, Twitter just laid off 30% of its talent acquisition team. While the exact number isn’t known, 30% is quite a sizeable percentage of people to layoff as Twitter is amidst a hiring freeze and cutting back on new hires.
It got me thinking, could LinkedIn be used to predict a recession?
One of the first things you’ll see during a pending recession is companies cutting back on expenses to reduce their burn rate, which is a fancy way of measuring how much money you’re spending and how fast you’re spending it.
We have seen numerous companies cutting back their workforce these past few months. Elon Musk cut 10% of Tesla’s workforce because he had “a super bad feeling” about the economy and is saying that he believes a recession is coming.
We’ve seen Coinbase lay off 20% of its workforce, driven partly by the collapse of cryptocurrencies and the turbulent economy. Many other companies have also reduced their workforce out of fear of a severe economic downturn.
LinkedIn would be flashing red now if LinkedIn were an economic indicator. But this is only my feed. Do you see a lot of layoffs in your feed too?