A growing number of companies rescind job offers as the economy becomes more fragile
Earlier this month, Coinbase and Twitter shocked candidates by rescinding job offers, which left some candidates stranded, as they’d already left their previous job. Unfortunately, the number of companies following suit is growing.
The Wall Street Journal notes that companies in the insurance, retail marketing, consulting, and recruiting services sectors are withdrawing offers as well. And other companies, including Netflix, Peloton, Uber, and Facebook, have announced layoffs or plans to reduce their number of new hires.
The hiring hesitation comes as the overall labor market is still quite strong, with an unemployment rate of just 3.6%, which is close to its best point in the last 50 years. Inflation concerns, though, are causing companies to be more mindful of their budgets—and some people who are about to start new positions have been caught in the crosshairs.
Analysts say there aren’t a tremendous number of rescinded offers hitting the market, but because the practice has virtually never happened before, the ones we are hearing about seem magnified.
That’s little solace, though, to people who have left jobs (or turned down other offers) in anticipation of starting a new one, where they’ve already accepted an offer.
“I was blindsided,” one candidate who was scheduled to join Coinbase this summer and asked not to be named over concerns about impacting future job opportunities told Fortune. “I quit a job that I wasn’t required to quit. I don’t know what I’m supposed to do now.”
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