Thanks  to the enormous balance sheets, Big Tech has historically been a resilient industry, absorbing most of the economic shocks. It is also considered a bellwether for decisions on corporate spending and hiring. As the growth-oriented technology industry confronts one of its worst contractions, with mass layoffs over the span of a few months, there is a sense of panic and anxiety. The shakeout is being viewed as an instance of social contagion — companies imitating what others are doing. Facing criticism, the tech giants are projecting the staff sackings as a course correction following a period of aggressive scaling up and bolstering of workforce during the pandemic. Amid predictions of a recession and a severe economic downturn in the West, the belt-tightening, it is argued, sends a message to shareholders of putting the brakes on any needless spending. The jury is out on whether the approach is prudent or myopic.

When the world’s most valuable and cash-rich firms resort to large-scale job cuts, worries of a ripple effect are inevitable. Knock-on consequences are expected in the consulting, marketing, advertising and manufacturing spaces. The developments are also bound to have an impact on India’s export prospects, especially in the information technology sector. The consolation, if any, is that most people losing jobs are highly employable professionals, given their education and work experience credentials. Salaries may deflate, but the tech industry is still a big employer. Competitive re-hiring may be back with a vengeance sooner rather than later.

There are calls in the US Congress to offer assistance to immigrants who have been laid off. As things stand today, it’s a grim scenario, but adversity can be turned into opportunity. For the Indian techies bearing the brunt abroad and the firms based in the country, it’s a chance to explore new beginnings and collaborations. It’s an opportune time to attract the talent back home, offer a slew of incentives and gain an impactful foothold in the global tech space.

(Tribune, India)