In the past few months, thousands of individuals have lost their jobs every week worldwide. On the other hand, there are thousands of people who go to work every day knowing they could be fired from their jobs.
The National Bureau of Economic Research claims that such a recession has not actually occurred. Shortly after Elon Musk bought the tech behemoth Twitter, the layoffs began and are still ongoing.
The first three weeks of January only saw the layoffs of 55,970 employees across 173 organizations worldwide, according to the job cutbacks tracking website Layoffs.fyi Employees from several major internet companies, including Google, Amazon, and Microsoft, have been laid off.
Furthermore, these layoffs already represent 35% of the total 2002 layoffs, when businesses sacked workers due to a financial shortage.
Google’s parent firm, Alphabet Inc., which announced 12,000 job cuts because of economic challenges, is one of the tech giants that recently announced layoffs. However, according to CNBC, nothing was decided at random; everything was done in a very systematic and prioritized manner.
The personnel reduction at Amazon is anticipated to be the biggest in the company’s 28-year history. More than 18,000 employees would be affected, according to CEO and Jassy.
Along with Google and Amazon, Microsoft also stated it will cut 10,000 jobs, Wipro fired 400 entry-level workers, and Swiggy fired 380 workers, to name a few. These layoffs are part of a recent pattern that has been linked to financial difficulties.
Multiple Layoffs: Motives
Employer layoffs have been ongoing in recent months, and this trend is anticipated to continue. Notably, IT companies make up the majority of the businesses that are firing workers. Mass hiring following the Corona pandemic, which struck the world and halted mobility, is one of the main causes of layoffs.
Along with recruiting, the current economic situation and worries about a recession have caused thousands of people to lose their jobs globally. Companies have begun taking action so that they can continue moving forward despite economic storm clouds as the world fears a worldwide recession.
According to Forbes, people’s emotions about layoff news are negative, but this does not mean bad news for the IT industry; rather, it is an indication of economic unpredictability and shows that the company has to focus its resources on new technology endeavors.