By Sam Boughedda
Souring business sentiment has resulted in Intuit (NASDAQ:INTU) halting hiring in its Credit Karma unit, according to Bloomberg.
Intuit shares have plunged over 9% following the news.
The declining business sentiment is said to have slowed the pace of lending leading to the company pausing almost all new hiring in the division. In a letter to employees shared with Bloomberg, the company's Chief People Officer Colleen McCreary said it is experiencing "revenue challenges due to the uncertainty of the economic environment."
However, the company will replace departing workers, and there will be no pay cuts. McCreary added in the letter that their partners are worried about "lending products among high inflation, potential for rising unemployment and the possibility of recession, which results in fewer opportunities for us to provide products for a broader range of members."
Due to the challenging economic environment, various tech firms and startups have paused hiring or initiated layoffs this year.
Bloomberg revealed that following the release of the Credit Karma hiring freeze letter to employees, employees and prospective new hires went on to the anonymous online forum Blind to discuss the situation.
According to the email, 100 people have recently been given an offer or accepted one and have not started yet.