The ongoing #RussiaUkraineWar has contributed to the layoffs in the job market as it has made the market more volatile. This is clearly visible from stock market volatility. A potential economic recession is a big red flag. With inflation soaring in most parts of the world, leading to a crisis in the job market as well. The International Monetary Fund has cited forecasts for global GDP growth in both 2022 and 2023 as gloomy. These measures involved increasing the interest rates.

We have seen how the U.S. multinational companies including tech giants Amazon, Meta, Intel, Twitter, Citi, Morgan Stanley and Adobe, announced massive layoffs. These developments are bound to have an impact on India’s export prospects, especially in the information technology sector. The Indian IT services firms are among the largest employers in the organized sector and any global economic trend is bound to have an impact on their growth projections.

The attrition rates or the number of employees per 100 quitting on their own, of the top two firms, TCS and Infosys, show that these rates are still high, which means that there is enough business for the sector for competitors to draw away employees with promise of higher salaries. For instance, all top companies except Wipro saw a rise in revenue and net profit.

The news of layoffs in the Indian start-up front is predominantly in Edtech, or the educational technology front. During the pandemic, there was a surge in demand as people were in lockdown, and were spending a lot of time on the internet. The overall consumption saw an upsurge following which the companies went to increase their output to meet the market requirements.

As the demand is coming back to pre-Covid levels and seeing the debt bubble almost about to burst and fearing recession, Managements during a recession look critically at headcount numbers to cut costs and protect profit margins as they are accountable to investors.

Experts .