Tech Layoffs- What are the Reasons behind Mass Unemployment in Tech Sector

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Technology is a queer thing; it gives you presents with one hand while stabbing you in the back with the other. While there has been a remarkable change in the way we work, owing to the technological revolution in the past few years, there is always something shocking in the store that a lot of us are not prepared for.

One of the hottest topics these days is the massive layoffs from tech companies, both big and small. Whether it’s Amazon, Meta, Twitter, or Salesforce, hundreds of professionals are becoming jobless in a matter of few days, and that is a rising concern for most.

Jobs are getting less secure, and even those employed are already looking for alternatives in this unpredictable scenario.

While, thanks to the internet, the newly unemployed can join the network of employers and seek new opportunities, it is still a shock for someone newly starting to work at Google to find themselves newly laid off from their dream job.

If you are one of the many victims of layoffs, hang on there. Look out for opportunities online and start networking. If you need a stable internet service for staying online 24/7 or working on projects remotely, check out Spectrum Internet and subscribe to their amazing deals.

If you are wondering what the reasons are behind such a pandemic of recession, you have come to the right place. We have carefully observed and researched the major concerns causing tech companies to lay off so many employees. So stick with us to learn about them.

The Massive Pandemic Hiring

The COVID-19 pandemic has given us all a rough time. But for the tech industry, it had been a kind of bliss; people started to believe that remote work will remain the new normal. Online shopping saw a boom, and the tech industry, in general, saw growth in its operations, resulting in a lot of new hiring.

Tech giants like Amazon, which already hire more staff than they actually require, slipped off a bit and hired a large workforce since there wasn’t a need for dedicated offices and everything seemed to go fine online.

Now, as the pandemic is over; bars are open, Saturday nights are becoming club nights again, and people are feeling the need to go to offices for in-person meetings and stuff, the tech industry is facing a bit of chaos in terms of resource management.

Companies are starting to realize that they have slipped off a lot during the pandemic and hired more than they needed. That has resulted in massive layoffs, especially of employees that were working from overseas.

Some sort of reiteration in the hiring of staff is normal, but the way tech industries have gone a bit too far demands recession, especially when there are economic crises and soaring inflation.

The Soaring Inflation[KE1] 

The soaring inflation in the US (like many other nations) has made companies reluctant on spending over advertisements. The decrease in demand made the previously thriving companies face a major downturn resulting in layoffs. According to a layoff tracking company, Layoffs.fyi, 217,404 employees have been fired across more than 1,300 tech companies since the COVID-19 pandemic.

Some reports show that amidst the pandemic and lockdown, there was a boom seen in online shopping and increasing demand. People didn’t have much to do during the lockdown and spent more time on social media and online shopping. Thus, demand across the tech industry saw a boom. Now, since everything has gotten back to normal, there is a sudden fall in demand, leading to economic crises and soaring inflation.

The huge collapse of cryptocurrency[KE2] 

The staggering crash of crypto has led companies to undergo massive layoffs. On June 14, the first crypto Fortune 500 company, announced a layoff of 18% of its workforce and stated that the company was preparing for “crypto winter”. The recent collapse of crypto is startling, resulting in major layoffs and a situation that might take years of recovery.

The companies facing downfall have also framed the recent economic condition as the culprit forcing them to take the necessary steps of cutbacks and layoffs. After all, the crypto industry is volatile; there was a time not long ago when companies were thriving, and hiring was plummeting. Now, as the crypto crash is happening, companies have to lay off employees from their volatile job roles resulting in a noticeable recession.

Final Thoughts,

There is a consequence of every action; what the tech companies did in the past few years is showing results today, this time as massive lay-offs. Not only are the companies to blame, but so is the overall economic situation. Let’s just hope this doesn’t prevail and work towards keeping our ends meet. We hope this article was insightful to you!


 [KE1]https://www.wionews.com/business-economy/from-pandemic-boom-to-lay-off-season-why-big-tech-companies-firing-thousands-of-employees-534471

 [KE2]https://time.com/6187665/crypto-layoffs-2022/