Hiring ahead of your attrition rate was a big deal over the last decade in tech. While cutting certain departments down to the most efficient head count (fewest) they could manage to get the job done, it quickly became apparent that you couldn’t stay on top of your work as soon as you had attrition. And while cutting cost is good for the stock holders on the surface, not getting development, support or implemented on schedule is bad for retaining clients and revenue. As a result workforce management runs numbers to anticipate hiring needs relative to workload and attrition rates so that they can keep running lean without falling too far behind in their business needs.
If it take 3 months to get someone fully trained up then you’re typically 3 months behind (not to mention the front-loaded lag time from recruiting, HR, new hire orientation, etc). When you hear slowing down hiring, it typically means they are adjust those numbers due to lower than expected attrition. If I hired two new devs in Q3 in anticipation that 2 would leave between Q4/Q1 and none have left, then slowing down hiring is completely normal and almost a nonevent as the team is now sitting heavy in headcount (which also makes it ripe for layoffs, either cutting underperformers or high cost employees that no longer justify the salary).
This is only noteworthy because it’s happening at scale across the industry and now the talent market (which has been bereft of talent recently) is now flooded with a few hundred thousand new applicants.
I’d only get concerned if we see another round of layoffs later this year at this same scale. The market correction is good for the business and recent events have given just about every company a free pass to recalibrate their talent. I feel for anyone that was affect by this but on the bright side if tech keeps growing most of these people will find new jobs within a few months.