The layoffs represent a new reality for the tech sector, which had been recruiting at breakneck speed in 2020, 2021, and 2022 as the global economy became increasingly dependent on technology. During the two years of covid lockdown, the sector had become the way for social connections. Consumers purchased online and communicated extensively via technological services. However, the economy is presently faltering, owing mostly to inflation. Prices for goods and services in many Western countries are at their highest levels in 40 years, causing central banks to hike interest rates, making credit more costly to obtain.
Many experts in the United States predict that the fast rise in interest rates would result in a so-called hard landing in the economy – a recession. When the economy is strong and confidence is high, the technology industry performs well. When things are going well, consumers are more likely to spend money on technology services. However, if the economy deteriorates, people become more conservative, prioritising critical purchases above technology.
