Prominent Tech Companies Experience Detrimental Layoffs
The post-Covid economy and job market of 2023 is one of much uncertainty and confusion. One industry in particular is being especially impacted by the state of the United States’s current economy: the technology industry. Over the past few months, numerous technology corporations have been announcing layoffs. Whether they are large, small, well-known, or just starting out, almost all companies in the tech industry have been forced to cut down their employees.
One of the reasons why tech companies may be laying off such large masses of workers may be to return to their pre-covid size of employees. During Covid, tech companies experienced tremendous growth because so many Americans were replacing their normal everyday activities with online versions. Whether it was going to the grocery store, going to the movies, or hanging out at work or school, the online versions of every activity became popular. To keep up with such a stark increase in the usage of technology, tech corporations began to hire more coders, engineers, etc. But, since the world has gone back to normal, companies have realized they no longer need so many employees.
Additionally, the threat of the United States going into recession is a key factor in the decision for tech companies to pursue layoffs. In order for tech companies to protect themselves against a looming recession, cutting down their employee base is a good option and could serve them well in the long run.