About Recession in the IT industry
According to fortune.com, inflation is hiking to a 40-year high. And business revenues are shrinking like in the pre-or-pandemic era. Ofcourse, these are the signs of nothing other than recession. Well, leading economists worldwide are warning about the same. But not equally across geographies, countries, sectors, industries, and companies.
When looking forward to the recession, from small organizations to big enterprises, all companies wanted to survive. The International Monetary Fund has forecasted that global economic growth to slow down by ~2.7% in the coming year 2023. And thus, most companies including tech companies have started working towards curbing theirexpenses.
Amongst the curbing strategies like reducing bonuses, employing contract resources, and layoffs, the latter is more beneficial. However, this does not apply to all companies. Those companies that believe it to be beneficial have already taken their first step. This includes tech giants like Meta, Amazon, Disney, Microsoft, Twitter, etc.
At the same time, we could see a lot of companies have stuck to labor hoarding. And, a few IT companies are still hiring talent. Perhaps, they feel hoarding and hiring are beneficial to overcome the recession.
At large, tech/ IT company jobs contribute only a little fraction of the total jobs market globally. Thus, the mass layoffs do not affect the unemployment rates as hiring is happening in parallel. Well-balanced, isn’t it?