Mass Layoffs; Are We Heading Towards Recession??
It’s lay off-season amongst big tech companies. It was recently that the economy plunged due to the pandemic and showed cracks in the facade unveiling the company’s shortcomings, from data leakage to worker mistreatment lawsuits to leadership tumult.
It all started with smaller growth companies that scrutinized their ongoing quarter and breached the system of e-commerce behemoth Amazon, social media Kings Meta and Twitter. According to Layoffs.fyi website that tracks tech job cuts globally more than 120,000 jobs have been lost. Different firms cited a range of reasons for their mass layoffs.
The first major layoff in the tech firm was declared by Elon Musk who took over Twitter in recent weeks. The first batch of lay-offs from the microblogging platform constituted top executives on board. To name a few CEO Parag Agarwal was laid off with a severance. According to a report, over 90 per cent of the Indians were fired from its office in the country. Specifically, most of the fired employees were the part of marketing, communication, and product team.
Next in line was Meta which was on a hiring spree earlier this year asked around 13 per cent of its total headcount to depart. Jeff Bez Amazon just this week reported having lay off as many as 10,000 employees majorly Indians asserting that it would continue to revolve its door into the next year.
The firing spree seems to be spearheading as the food delivery app Zomato chief and widely used messaging platform application head also quit their posts. Looks like tech firms are fixing a previous mistake when they introduced the trend of mass employment amidst the pandemic, which was breaking their neck.
One of the hot topics amongst economists that could validate the mass layoffs is the prospect of a recession. Let’s break down some key arguments for you that would give better insights on the economy and the so-called ‘pasta bowl recession’. Central banks across the world simultaneously have been rising interest rates in response to inflation. Economists predict a contraction globally which has begun with mass layoffs.
Global consumer confidence has already suffered a much sharper decline owing to the pandemic. The world’s three largest economies the US, China and Europe have been slowing sharply. With a majority of Republicans wresting control of the White House and Rishi Sunak improvising his strategies to tackle the slowdown, the recession seems to be near.
Start-ups have been aggressively calling out those who were laid off by the top tech firms to spread the word and return home to help Indian tech realize hyper-growth potential in the next decade. Looks like the lay off has been a major push to ‘Atmanirbhar Bharat’.