Recent Wave of Tech Layoffs
Layoff means removing employees from jobs. Dismissing due to a decrease in profits. When the profit of a company is not sufficient to pay all its employees, it Lays OFF. Recently, IBM (International Business Corporation), one of the largest tech companies in the world laid off its 3,500 employees. This is the largest layoff since 2022. MID LIFE CRISIS is the main reason for the layoff. Apart from IBM, several other tech giants such as Amazon, Microsoft, and Meta are also reducing their employees.
Reason for the recent Tech Layoff
The United States Federal Reserve has increased the interest rates rapidly to control inflation in the country. During inflation, the apex banks increase the interest rates to encourage people to save and invest. Consumer demands decrease and people start saving. This decreases liquidity in the country. During such times, the companies are affected as loans become expensive. This leads to lay off.
How is this affecting Indian Professionals?
Out of the total layoffs made, 30% to 40% of them are Indian IT professionals. They are on L1 and H – 1B visas in the US. H – 1B visa allows American companies to hire foreign companies.
What is MID LIFE CRISIS?
Midlife in the economy means the period during which a company or a country faces financial challenges.
Tags: Indian American • Interest rate • Layoff • NRI • Technology Sector
Month: Current Affairs - January, 2023
Category: Economy & Banking Current Affairs - 2022 • International / World Current Affairs
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