Why global headwinds are pushing firms to rethink hiring

Free Malaysia Today

As tariffs rise, AI advances, and the energy transition accelerates, companies from Silicon Valley to the Klang Valley are trimming jobs, not in panic, but to future-proof their businesses.   *The footage in this video is sourced from various social media platforms for educational and non-commercial purposes only, with all rights remaining with their respective owners.   Read More:  https://www.freemalaysiatoday.com/category/nation/2025/07/01/why-global-headwinds-are-pushing-firms-to-rethink-hiring   Laporan Lanjut:  https://www.freemalaysiatoday.com/category/bahasa/tempatan/2025/07/01/kenapa-tekanan-global-paksa-syarikat-nilai-semula-rekrut-pekerja   Free Malaysia Today is an independent, bi-lingual news portal with a focus on Malaysian current affairs.    Subscribe to our channel - http://bit.ly/2Qo08ry   ------------------------------------------------------------------------------------------------------------------------------------------------------  Check us out at https://www.freemalaysiatoday.com  Follow FMT on Facebook: https://bit.ly/49JJoo5  Follow FMT on Dailymotion: https://bit.ly/2WGITHM  Follow FMT on X: https://bit.ly/48zARSW  Follow FMT on Instagram: https://bit.ly/48Cq76h  Follow FMT on TikTok : https://bit.ly/3uKuQFp  Follow FMT Berita on TikTok: https://bit.ly/48vpnQG  Follow FMT Telegram - https://bit.ly/42VyzMX  Follow FMT LinkedIn - https://bit.ly/42YytEb  Follow FMT Lifestyle on Instagram: https://bit.ly/42WrsUj  Follow FMT on WhatsApp: https://bit.ly/49GMbxW  ------------------------------------------------------------------------------------------------------------------------------------------------------  Download FMT News App:  Google Play – http://bit.ly/2YSuV46  App Store – https://apple.co/2HNH7gZ  Huawei AppGallery - https://bit.ly/2D2OpNP   #FMTBusiness #Hiring #Layoffs #ArtificialIntelligence

Transcript

00:00Right now, companies around the world are doing something they haven't done in a while.

00:07Slowing down and rethinking how they hire.

00:11Not because the economy is collapsing, but because a lot of big changes are happening all at once.

00:18Trade rules are shifting. Artificial intelligence is getting really advanced.

00:23And the push for cleaner energy is no longer just a buzzword. It's policy.

00:29So, what's actually going on?

00:36Let's start with trade.

00:37On April 2, 2025, US President Donald Trump announced a sweeping new tariff policy.

00:43A 10% baseline on all imports and much steeper rates of up to 50% for 57 trading partners.

00:51Most of the higher tariffs were paused within days,

00:54except for China, where rates jumped to 145% before planting to 30% with negotiations still ongoing.

01:02The move marked a clear shift. The global economy is shifting back toward protectionism.

01:08Tariffs on technology and electronics, especially from Asia, are now in focus.

01:13So companies, especially multinationals, are adjusting.

01:16They're shifting production to friendly countries, also known as friendshoring.

01:22Malaysia's been one of the winners here.

01:24Big names like Intel, Infineon, and Micron have all made fresh investments.

01:30But even with such new activity, demand remains difficult to predict.

01:34Post-pandemic, chip sales cooled.

01:37In Penang, hiring slowed. Some plants paused expansion plants.

01:42We saw a similar pattern with glove makers. Remember the boom during COVID?

01:46Top Glove, one of the world's largest producers, had to shut down several factories in 2023.

01:53Too much supply, not enough buyers.

01:56And then there's tech. After years of hiring sprees, the brakes came on hard in 2025.

02:02Meta and Microsoft cut over 30,000 jobs globally.

02:06Almost 20,000 of those were in Silicon Valley.

02:10Singapore, a regional tech hub, felt the spillover too.

02:14The reason? Many of these companies scaled too fast during the pandemic.

02:18Now they're trimming back and investing in automation and AI.

02:23But tech isn't the only one.

02:25In the US, retail is bracing for a wave of closures.

02:29Analysts expect more than 15,000 stores to shut their doors this year.

02:33A shift that could affect up to 200,000 jobs.

02:37Meanwhile, in Europe, industrial players like Thyssen Group are making cuts too.

02:421,800 jobs gone from its auto parts division, citing weak demand and supply uncertainty.

02:50Now, let's talk energy.

02:52The green transition. It's no longer just hypothetical.

02:55Governments are setting hard targets.

02:58Investors are demanding low-carbon plants.

03:01In Malaysia, companies like Petronas and Tanaga National are expanding into renewables.

03:07That's good news in the long run, especially when geopolitical tensions and volatile commodity prices

03:12result in unpredictable overhead.

03:15But in the short term, it means a bit of market adjustment will be necessary on the road ahead.

03:21It's happening elsewhere too.

03:23Carmakers are shifting to electric vehicles.

03:26Coal plants are being retired.

03:28Solar fields are scaling up.

03:30Jobs are moving to reflect the need for different, greener skill sets, not vanishing overnight.

03:36At the same time, local banks are grappling with tightening regulations and rising non-performing loans,

03:42forcing them to streamline branches and retreat staff for digital banking operations.

03:48In retail, brick-and-mortar chains are closing storefronts amid fluctuations in consumer spending

03:53and the rise of e-commerce platforms like Amazon and Shopee, sparking realignments into logistics and

03:59digital marketing over in-person sales.

04:02Overlaying all of this is AI.

04:05It's no longer just about cool demos.

04:08It's replacing real jobs.

04:10In Malaysia, ByteDance, the company behind TikTok, cut hundreds of moderation roles last year.

04:16AI tools were simply faster, cheaper, and increasingly good enough.

04:22Banks, telcos, even government agencies are turning to chatbots and automation to get things done.

04:29That doesn't mean everything is disappearing.

04:31In fact, companies are spending more on retraining.

04:35Workers are learning new skills in coding, energy systems, even AI oversight.

04:40But the pace is fast and the stakes are high.

04:44So no, this isn't just about layoffs.

04:48It's about a system-wide adjustment.

04:50Companies aren't reacting to one crisis.

04:53They're preparing for a very different future.

04:55One with new rules, new tools, and a new kind of workforce.

05:02Natasha Bust, FMT

Category

Transcript

Recommended