• April 23, 2023, 2:20 p.m.

What are the chances of layoffs in the Indian IT industry now when the United States has officially gone into a recession?

Is India in a recession?

Not yet.

Is the USA in a recession?

Technically not but they are on a verge of recession.

What does recession means and on what all factors it depends?

Recession is a very complex thing and it depends upon so many factors that it's really hard to define and explain its causes in a few words. But on a general level, a recession can be defined as a sustained period of weak or negative growth in real GDP (output) that is accompanied by a significant rise in the unemployment rate.

How does it affect Indian job seekers?

Service-based companies get a lot of business from the USA, and startups and product-based companies raise a lot of Capital from US-based investors. Most countries do International business in USD and we all know how a major player USA is in the world economy. So yes if the economy of the USA will slow down it will eventually slow down worldwide markets including Indian markets. When the cash flow decreases it affects everyone, so companies that were expanding rapidly and hiring big numbers will be forced to cut down their costs. Startups that are not profitable will be forced by investors to reach profitability. This will start a chain of slow hiring or hiring with fewer hikes or in some extreme cases layoffs which have already started. Many companies which were bullish during covid have now realised that many things are back offline and things are not going to move at the pace they expected.

How long this coming recession will last?

It's hard to predict but somewhere between 1-3 years.

What can you do to survive these tough times?

Stay relevant to your company. Make sure your team and your org have a dependency on you. Keep studying and keep preparing so that if the worse happens you will be mentally prepared. Grow your network. Don't switch in hurry, if you are joining a new company make sure you research the company's stability. If you are looking for a job then don't lose hope, things might be slow but you can still get a job if you keep trying. Also, make a habit of saving and do help out others. See in the end every freaking company in the world has one goal i.e. to make money and sometimes people running those companies need to take tough decisions. Things like layoffs or recessions are out of your control. So stop worrying.

Is there anything good about the recession?

In today's time, the world runs on software and data. Tech jobs are not going anywhere. In the last 100 years of history, it has been seen that after every recession when economies bounce back it creates a lot of opportunities. As I said earlier, India is not in recession, it's affected by the global recession. India should be back on track before the rest of the world. I am sure if you work on yourself you will have ample opportunities to make money.

So, yes recession will affect Indian markets and we will see layoffs but not as much as in the USA. We all are into this together. Let's help each other and we all will come out victorious. Keep reading, keep learning & keep growing.

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  • #Layoff
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  • #Jobless
  • #Downsizing
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  • #OutofWork
  • #Retrenchment
  • #CorporateRestructuring

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