This may look like an unexpected correlation but this seems to be the bitter truth behind the record lay off of techies in the USA which is hurting our NRIs like anything. One major obvious reason is that there was excess hiring during the pandemic period and now many big tech companies are realizing that this is no longer required. Hence, many are choosing layoffs for such excess roles.
However, what seems to have missed the eye, according to the latest analysis is that the start-up boom culture in Silicon Valley that has attracted maximum investments at record low interests is the major reason why companies are laying off.
Many big companies have invested in startups, which formed a speculation. This was done when borrowing costs were low and tech majors made investments in the over hyped market and as many of them are going bust, the tech majors are losing their investments which is eating into their financial budgets and hence this is being cited as a major reason for record job losses in the IT sector in North America.