Tech giants are laying off their employees in fear of becoming a loss making company
Inflation, Ukraine Russia war, and the after-effects of Corona are some of the known reasons that are affecting the global economy but still, there are a plethora of reasons that must be affecting this. Despite trying all possible ways to strive for better in this hard time we are witnessing catastrophic events, especially tech companies whose economies surpass the GDP of some countries.
A trend of laying off employees started with Elon Musk’s Twitter company which laid 75 percent of its employees to make it a profit-making company. Even before this happened BYJu was removing hundreds of workers in the name of transfer to another spot of the same company.
Facebook and Amazon have also frozen the hiring procedure so that they can keep their company profitable. One of the main reasons for this is inflation which causes the banks to increase the interest rate. This increase in interest rates has caused a hike in manufacturing and production prices.
Overall if companies want to generate profit by paying their employees they will have to make a few members work in place of multiple laid-off members to keep the companies going on the track of profit otherwise this inflation sweeps out the major tech companies.