Every week seems to bring a new round of layoffs in the tech sector. But why is this happening?
During the pandemic years, our online lives became our only lives. We were all forced to stay home and we spent a lot more time online which led to a boon for tech companies. Because they expected this shift to become permanent, tech companies hired accordingly.
Since the world has returned back to (pretty much) normal, it’s clear that the vision of the future from CEO’s like Mark Zuckerberg wasn’t quite right. Life away from the office is almost exactly how it was before the pandemic.
The end result? Tech companies hired too many people, too fast. This situation wouldn’t necessarily be a major concern if the growth prospects were healthy in tech. The issue is that the short term future isn’t looking too good. We’ve been hearing for months now that the US is apparently heading into a recession.
Source: The WSJ & Forbes