As recession fears warm up, big tech layoffs are generating dread, creating a trickledown effect amongst smaller companies, which are shrinking businesses.
As CNBC said, ‘After the Great Resignation and quiet quitting, the era of ‘loud layoffs’ is here.’
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It all began with Elon Musk, the recent Twitter owner laying off half of Twitter’s 7,500-person workforce after he took control of Twitter in November, and more layoffs are in store, according to The Verge. Right now, Twitter doesn’t have a communications department to contact for comment.
Although, Twitter’s layoffs are different from the rest, others aren’t behind either. Meta Platforms announced that it will let go of 13% of its workforce, or over 11,000 employees, which is being called one of the biggest tech layoffs this year. Reason, surging costs and a debilitating advertising market. As concerns mounted, Mark Zuckerberg Meta Chief Executive informed employees that WhatsApp and Messenger would push the company’s next phase of sales growth.
Amazon.com has plans to lay off some 10,000 employees in corporate and technology roles, its biggest such reduction to date. This, after Amazon hired in copious amounts since the pandemic.
Tech giant HP said it expects to lay off up to 6,000 jobs by end of FY 2025, or around 12% of its global workforce, as PC and laptop sales fall with shoppers tightening budgets.
We can observe a trickledown effect with smaller companies, as lay off behaviour spreads like fever.
Swedish fashion giant H&M became the first big European retailer to begin layoffs by declaring 1,500 job cuts due to diminishing demand as consumers grapple with skyrocketing inflation. At the same time, British fashion retailer Primark said it has plans to invest 100 million euros in new stores, renovating the existing ones in Spain, its second largest market after Britain.
Today, ShareChat laid off 5% of its workforce, shutting down its fantasy gaming vertical Jeet11.
In India, Fidelity National Information Services’ (FIS), a US FinTech multinational corporation laid off more than 400 employees in Pune.
According to the WSJ, what’s different about this round of layoffs is that white collar workers are hit the worst, as demand falls for professionals in tech, finance, legal and scientific. The recession is causing companies to shrink business projects and all that tech professionals gained during the pandemic seems to be in a precarious balance.
According to the WSJ, what’s different about this round of layoffs is that white collar workers are hit the worst, as demand falls for professionals in tech, finance, legal and scientific
Big tech layoffs could be an opportunity for smaller tech companies. It’s possible they might be able to hire top talent that is big tech usually scoops up with money and reputation.
For example, according to the Guardian, tech companies are wooing ex-Twitter staff after Elon Musk started cutting down Twitter’s workforce.