Yes it can happen. I have experienced it in a 500-person privately owned company as well as a publicly held global logistics giant.
When companies are in a cash crunch (or are bearish in their financial forecasts due to various internal or external indicators...like this economy, AI trends, etc.) they'll cancel nearly all posted jobs, any scheduled interviews (1st, 3rd, whatever), and offers pending.
I have had 2 offers withdrawn in my professional career and both employers were transparent that things shifted in the company and they cancelled the position.
Working as manager, I also had to agree to the VP that talent acquisition was going to call back candidates and tell them they withdrew the position.
Similarly, wage increases were only a small percentage to account for a ride in the standard of living costs. All managers abd team leads sat through Finance and HR-led workshops on how to speak to employees that weren't getting a raise.
Finance was also very transparent to all employees of the company, and every month prior to the cash issue, would present where the company was at for meeting our financial goals.
At times we experienced the double whammy of layoffs AND meager salary increases (2-3%).
It's easier to understand when the company is transparent. Then you start to get a feel when things are stagnant or trending down. If course, some companies only communicate to people on a "need-to-know" basis. Whispers of layoffs or no raises always circle around though.
Protip if you made it this far.
If finances are trending the wrong direction, you can likely assume VPs have asked their Director to assess their Managers, and Directors have asked their managers to rank their staff (A's, B's, C's...). This is a time when Managers can let go of low performers or people with bad attitudes and not feel guilty about it. It's a pre-approved layoff, so that you get rid of people who aren't adding to the team, and your team may be able to have a bigger budget at the end of the year for raises.
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