Netflix, Robinhood, Carvana and Facebook parent Meta are joining the growing list of tech firms laying off employees or slowing hiring which Parler CEO George Farmer warned is “just beginning.”
“The sector is feeling the effects of this interest rate rise and the end of free money,” Farmer told FOX Business’ Maria Bartiromo on Thursday. “The free pay environment has sort of exacerbated the worst of the tech hiring, which has basically meant that companies are trading off ridiculous price-to-earnings ratios and have sort of exacerbated the overstaffing of these companies.”
On “Mornings with Maria,” Farmer further cautioned that a “perfect storm” is headed for the technology sector, claiming the industry is most exposed to the Fed’s “incredibly aggressive” inflation period.
“I think it’s probably going to be more of an industry-wide repercussion, if I’m honest, rather than just a sort of isolated example,” Farmer said. “And I do think that it’s going to get worse before it gets better.”
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“I’d be very surprised if you suddenly see companies start hiring again in the short-term,” he continued.
Reacting to Meta COO Sheryl Sandberg’s resignation announcement Wednesday after 14 years with the social media giant, Farmer said he doesn’t believe her leave is part of the wave of layoffs.
“Meta is facing unprecedented challenges as it tries to move into the metaverse. That’s another area that they’ve frozen hiring,” Farmer explained. “I think that she probably has found that the future is a bit brighter outside of Meta and the increasing regulation that they’re facing and the increasing scrutiny that they’re coming under globally.”
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Parler, Farmer’s free-speech social media platform, hasn’t been suffering from an employee exodus, he noted.
“We’re not laying off workers. We’re actually hiring right now,” Farmer said. “We’ve had a very busy year, and we’re expanding fast, and we’re growing well.”