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Remote-focused companies are increasingly rescinding job offers

Yahoo Finance reporter Dani Romero breaks down how more and more companies are slowing down hiring and even rescinding job offers, particularly companies that hedged their bets on remote-only work.

Video Transcript

DAVE BRIGGS: One by one, companies are beginning to rescind job offers. The latest move to cut costs amid growing fears of a coming recession. For more on this, let's bring in Yahoo Finance's Dani Romero, here with us in studio. Nice to see you, Dani. What are we learning?

DANI ROMERO: Oh, nice to see both of you.

DAVE BRIGGS: Yeah, in the studio.

DANI ROMERO: It's really nice to be in studio.

DAVE BRIGGS: Welcome.

DANI ROMERO: Well, a growing number of companies, like you said, have started to rescind offers. Twitter, we're seeing Twitter. Coinbase is another one. Redfin, and other companies, for example, Netflix, Peloton, Carvana, they've actually announced layoffs. And big tech companies are also jumping in on this bandwagon as well. Facebook, Uber, they have warned that they are slowering-- slower-- slower. They are slowing down.

DAVE BRIGGS: Slowing. We're with you.

DANI ROMERO: They're slowing down--

DAVE BRIGGS: It happens to me all the time, man.

DANI ROMERO: --slowing down their hiring approach. But the bigger question is, where are we really seeing this big decline and what sector exactly? Well, I spoke with a vice president from a human resources firm, Gartner, who says-- take a listen to what he has to say about the biggest move.

- So the places where we're actually seeing more offers get rescinded, more layoffs occurring in the tech sector, are those companies that bet really heavily on the wrong assumption that we're going to be in a fully remote world. We're not. We're going to be in a heavily hybrid world. And that is a subtle but important distinction. That's why we're seeing some of those layoffs, some of those offers being rescinded. They're more concentrated in the heavy remote bets sorts of companies.

DANI ROMERO: So you can hear it right there that these companies really overshot it and weren't really expecting that employees and consumer behavior would really change. So that's-- I mean, it was pretty interesting to hear that we are-- that these companies really did overthink this, right? And we're getting out of the pandemic, so.

DAVE BRIGGS: It's a very interesting point. Rachelle?

RACHELLE AKUFFO: I mean, this is such a big shift. Obviously, a lot of the focus has been on the great resignation. Even Beyoncé's new track, "Break My Soul," is an ode to the Great Resignation. Talk about quitting a job and burnout. What about for some of these college grads who are now entering this market? How strong of a position are they in at this point?

DANI ROMERO: That's a really good question. I was speaking with my brother, who is a college grad. And he was telling me this is a big, big issue right now. He actually moved to Wisconsin for some training. And now he's back in California, ready to start his new job. But again, speaking to Gartner, he said that with companies rescinding these offers, it really disrupts the reputation of these companies.

And the other thing along with this is that employees that are currently at that company will then also rethink, what is my relationship at this company? Will I lose benefits? What will happen to my wages? So there is this big concern around the economic uncertainty. And I think that's the really big focus right now, with employees and employers.

SEANA SMITH: And Dani, real quick, I mean, it's also interesting just seeing how these companies or how these employees have responded to this because I was reading "The Wall Street Journal" article, and she was saying that she quit her job. Her next job offer was rescinded. So she was saying, if I ever change jobs again, I'm actually not going to quit until I'm being onboarded at the next company. So something to really think about if you don't necessarily maybe trust your next employer fully until you're in the job that first day.

DANI ROMERO: Yeah, and what is it really going to take, right? What do you need? Do you need a little bit more of a bonus? Or are you going to-- it really comes down to what is your offer letter, right? What does your offer letter say at that point?

DAVE BRIGGS: Get it in writing.

SEANA SMITH: Yeah, get it in writing. Sign it.

DAVE BRIGGS: Get it in writing. That's my advice.

SEANA SMITH: Yeah, exactly.

RACHELLE AKUFFO: Make sure you sign on that dotted line. A big thank you there to Yahoo Finance's own Dani Romero.