Tech Industry Wracked With Layoffs Due to Global Economic and Geopolitical Situation

The tech industry managed to get through the coronavirus pandemic intact, even while other economic sectors saw massive declines due to the lockdowns caused by the pandemic. In spite of the fact that this is the case, it seems that the current geopolitical and economic situation around the world is taking a lot of the wind out of the industry’s sails. A recent report revealed that Snap Inc. is planning to lay off a lot of staff, and they are not alone in that respect.

The second quarter of 2022 has brought widespread layoffs in the industry because of the fact that this is the sort of thing that could potentially end up keeping companies afloat during the uncertain economic climate. With all of that having been said and now out of the way, it is important to note that Snapchat is not the only company that has been faced with a less than stellar business outlook in the coming year.

The number of tech companies who are laying employees off skyrocketed by 850% in the second quarter of 2022 with all things having been considered and taken into account. 170 tech companies are planning to lay employees off during this period, which is several times higher than the 20 that were doing the same in the first quarter of this year.

Even companies like TikTok which have seen massive growth have had to lay off many of their employees due to a lean financial period that is coming up. Twitter has also had a rough time, spurred in no small part by the attempted hostile takeover by Elon Musk which dragged down the company’s average stock price.

Crypto scams and widespread fraud are also causing a lot of issues in the tech industry, and we might see an extended period of financial strife for all of these firms. It will be interesting to see what the industry looks like next year, because the current outlook does not seem promising and these corporations will have their work cut out for them if they want to continue to thrive.
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