Therefore, IT companies are reevaluating their spending and preparing for a possible recession amid widespread caution regarding the slowdown in the global economy.Ĭonsumer price inflation has skyrocketed in almost every major country in the world since the geopolitical crisis, thus leading to weak consumer demands. The International Monetary Fund (IMF) and World Bank have previously advised economies to prepare for a slowdown in the pace of growth. The year 2023 is expected to see a worldwide recession, according to many economists and the majority of the Community of Chief Economists at the World Economic Forum predict that geopolitics will continue to influence the world economy and with the ongoing Russia-Ukraine conflict, the matters will only get worse, with severe impact on the US and Europe. Hence, to tackle this economic slowdown, all the companies, including Alphabet, the parent company of Google, have opted for a string of layoffs. While Google and Microsoft lost $700 billion each, and Facebook (Meta) lost $600 billion Amazon, a public company, became the first to lose a trillion dollars in market value, making the situation even worse. This has occurred particularly in the US and European markets, with the tech sector facing the brunt of it and experiencing billions of dollars worth of market value losses.įacebook, Apple, Amazon, Netflix, Google, and Tesla, had collectively shed more than $3 trillion in market value by the end of October 2022. However, since the end of 2022, there has been a steep decline primarily due to the economic chaos experienced worldwide as a result of the ongoing conflict between Russia and Ukraine, as well as an impending recession, increasing inflation, and a slowdown in the employment market. With the Covid-19 pandemic, although the world had come to a standstill, there was unprecedented growth in the tech industry, as it was embraced by people from all walks of life like never before, resulting in many big tech firms earning unheard-of profits.

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