A global recession is likely to hit this year 2023, but India will face a bit of it in June 2023, and pressure on food, energy, and inflation may be peaking, the World Economic Forum said on Monday in its Chief Economists survey. As the COVID times are about to end, many multinational companies are laying off their employees who were hired at the time of COVID-19. Most of the hiring took place during the time of lockdown in India, as the digitalization wave hit the world with lots of advantages and disadvantages.
Technically a recession means that the total output in the economy – measured by the “Gross Domestic Product” or “GDP”. So essentially, for India to hit a recession in June would require the GDP during January to March quarter as well as the GDP in the April to June quarter this year to contract over the same two quarters in 2022.
Over 1,600 employees are being fired per day in year 2023 by tech companies’ world widely, including in India. These mass lay-off incidents are increasing across the globe amid fears about global recession and slowdown.
Around 91 companies have laid off more than 24,000 employees in the first 15 days this January, signalling worse days ahead in year 2023. In 2022, over 1,000 companies laid off more than 1.5 lakh employees, as per the data. Several big companies, including the Meta, Amazon, Twitter, Better.com, Alibaba laid off employees. Indian companies were also not behind of this recession period lay-off. Social media company Share-Chat laid off 20% of its workforce due to uncertain market conditions, affecting more than 500 employees.
BY: Mohit Makkar
