Amazon, Twitter, snapchat and other companies enforce significant job cuts .
What is this layoff crisis?
The term lay of crisis is related to the silicon valley crisis under which it is expected that several large companies like Amazon would bring in job cuts in their organization.
Close to 10,000 employees have already been removed from the company Amazon. While other major companies like meta Twitter and Microsoft are also coming up with the proposal to bring in job cuts and fire their employees. It has emerged as a major human resource challenge.
Read More: Meta invests more money in the metaverse while laying off 11,000 employees
The reason behind such a crisis?
The COVID-19-induced global recession is a large factor behind this crisis. The companies were not able to achieve their desired growth post the pandemic. The recovery did not go as expected enhance these companies are facing huge financial challenges leading to the above crisis. Moreover, it is also seen as a consequence of the decrease in demand for the E-Commerce sector post-pandemic where things are returning back to physical infrastructure.
Impact of such a crisis –
Although it is said that this crisis is not a permanent one however it would have a number of adverse consequences. The rates of unemployment and under-employment show an exponential increase as a consequence of this crisis. Job loss in the IT sector would make the youth victims of the crisis. It may serve as a big demotivation for the startups and could limit their further growth.
A compensation package mechanism needs to be developed for employees working under these companies. Amazon gives a package of compensation equal to 16 weeks. In a free enterprise economy, these tech companies should recognize the market as it evolves that COVID-19-led opportunities created for them. Therefore, working towards a hybrid model can provide flexibility to these companies.
