What is Hiring Freeze – What to Do During a Hiring Freeze?


Every other company is announcing layoffs and a recruiting freeze right now. This is a perplexing message, given that it follows one of the hottest job markets in recent memory. Perhaps you’re worrying, “Will I lose my job?” What does this mean for my future job prospects?

We’ll go through what a hiring freeze is and how to handle it if it happens to you at work or during a job interview.

What is a hiring freeze?

When a corporation temporarily stops filling open positions and adding new ones, they are said to have implemented a tech hiring freeze. There are several valid reasons for halting, including the need to reduce expenses, deal with a financial crisis, prepare for a downturn in the economy, or any combination of the above.

Even if tech companies hiring freeze is in place, that doesn’t imply all recruitment efforts are put on hold. For instance, a corporation with retail storefronts cannot afford to have those locations go unstaffed.

Instead, hiring is limited to only those roles necessary to keep the firm running, which typically applies only to non-essential personnel. Some positions may be filled in unconventional ways, for as via contracting with independent contractors, freelancers, or consultants.

Many organizations have stopped hiring as they try to figure out why.
As a result of the current economic climate, many businesses have announced layoffs. The economy is contracting, interest rates are rising, and prices are increasing; these factors combine to create a challenging scenario. Companies, like families, are looking for methods to reduce spending.

How Hiring Freezes Work?

Businesses often implement hiring freezes as a stopgap measure before making layoffs. When facing financial difficulties, putting the brakes on hiring can buy companies time to figure out other ways to make ends meet without laying off employees.

Liquidity, or the available cash in a company, is another factor that can benefit from a hiring restriction. The company’s liquidity can be improved rapidly by avoiding the costs of hiring new employees, which is excellent for the business in the long run.

Simply put, a hiring freeze is when businesses stop actively seeking new employees to fill open positions. The freeze could be implemented in addition to or as a substitute for layoffs and furloughs. The corporation may implement more measures to save costs, such as freezing pay increases, eliminating incentives, or cutting employee perks. 1

As a rule, companies stop hiring new employees when business is slow or stagnant. Companies may halt hiring even while business is steady to preserve earnings.

A hiring freeze may be implemented even if an individual company has not yet seen the effects of the economy’s downturn.

Examples of a Hiring Freeze

Following a quarterly fall in revenue and profitability in 2022, Facebook’s parent corporation Meta froze hiring across most teams. According to The New York Times, the employment block would include engineers and some data scientists. Mark Zuckerberg, CEO of Meta, also disclosed spending cuts and layoffs. 2

When cutting costs in 2022, other IT companies halted hiring, laid off employees, and did all they could to save money. To give just two examples, Coinbase has withdrawn employment offers, and Amazon has halted hiring and is cutting jobs.

What to do if the company you work for puts a hold on new hires

After Accepting a Job Offer

Unfortunately, the offer will likely be canceled if a company declares a hiring freeze after you’ve been offered a position but before you start working there. Unfortunately, this might happen even after you’ve informed your previous employer of your intention to leave.

It’s best to contact the hiring manager and HR representative first to find out as much as possible about the hiring freeze, including how long it will last and whether or not they intend to keep your job offer on the table after it’s lifted. You’ll have to determine if you can wait a few months for a proposal that may or may not come through.

Negotiate for more favorable terms if you’re seriously interested in the position. If a company has a hiring freeze in place, some managers may be able to get around it by employing the workers as contractors first. This means you will be paid to do the same or similar duties as the position you applied for. Still, you will not be eligible for benefits typically associated with full-time employment. Though there is no assurance that you will be brought on permanently, this might be an excellent way to break into a corporation.

After a meeting

If you are in the middle of an interview process with a company that suddenly stops hiring, keeping a good attitude is the most important thing you can do. There’s no harm in keeping in touch with the recruiting manager and letting them know that, even if they can’t hire you at the moment, you’re still very interested in working for their company.

If you’re still interested in working for the company once the big tech hiring freeze, keep an eye on company updates.

Taking action if your firm freezes recruiting

Decide things carefully and not in a hurry

Even though your workplace is in flux, you shouldn’t feel compelled to send in your two weeks’ notice or start a mad dash for a new job. It’s an excellent time to put your personal life on hold and think things over, as the hiring freeze will prevent you from making any significant changes. Put off significant expenditures like a new house or car until you know how the economy is doing.

It’s essential to learn more, so gather all the details you can

Learn as much as you can about the financial health of your organization, including its history of growth and projected earnings. You can access much of this data online if your company is traded on an exchange.

Think about what your business sells, too. Do clients consider it necessary to keep paying for it even if circumstances go rough, like electricity? Is it like a high-end device, which many people may put on hold before deciding whether or not to buy? Or do we find ourselves in a grey area? Consider this while considering the effects of a hiring freeze on current staff.

Build up your connections

Suppose a hiring freeze at your firm indicates further impending unfavorable changes. In that case, you should start putting out feelers within your network for potential job openings at other, more financially sound organizations.

Contemplate your alternatives

Consider the benefits and drawbacks of leaving your current employment if you’re considering moving. Some primary considerations are as follows:

As to how much longer things are expected to stay the same as they are
To what extent are other businesses experiencing comparable difficulties?

Consider whether you would be ready to settle for a less desirable position if it meant more excellent work stability.

Whether or if there is room for promotion at your current organization
A look at your financial situation
Remember that many workers are unaffected by a hiring moratorium, so you might be better off staying put for the time being.

Be optimistic if you’re on the hunt for a job. It’s important to remember that even the most challenging economic times eventually improve. While you wait for a more stable employment market, you can pay the bills by working part-time or freelance.


Although a hiring freeze may cause initial uncertainty for any person or firm, you should maximize this opportunity.

Your top priority should be providing outstanding service to your other customers. At the same time, you figure out a better way to help the businesses that have halted hiring for the time being.