Tech Layoffs: Are They More Signs of a Possible Recession? A Bay Area expert explains

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Tech Layoffs: Are They More Signs of a Possible Recession? A Bay Area expert explains
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SAN FRANCISCO (KGO) — More tech layoffs are expected this week. This time at Amazon. The New York Times reports that about 10,000 Amazon employees will be laid off.

“We may not have seen these kinds of trends simultaneously. Certainly not in the past 20 to 25 years,” said Jo-Ellen Pozner, associate professor of management at the University of Washington’s Leavey School of Business. Santa Clara.

“So I think a lot of organizations are trying to figure out what’s really driving the issues they’re facing right now. It’s not easy to attribute the explanation for a particular issue to just one thing. We We’ve been through a pandemic. There’s global inflation, there’s a war in Ukraine and energy disruptions,” she said.

MORE: Amazon plans to lay off thousands of workers: report

Over the past two weeks, Twitter has laid off about half of its workforce. Meta over 11,000 employees and now Amazon are these additional signs of a possible recession?

“Recessions happen because a lot of people are looking to read the tea leaves and make decisions based on what they expect to happen. So that doesn’t mean it doesn’t There may be a causal link between what tech companies are doing and what the rest of the economy could be doing 6 months from now. But is there an inevitable and definite relationship? There isn’t.” , said Pozner.

MORE: Layoff Tracker: Mass layoffs by tech companies big and small hit the Bay Area

Why are these companies laying off employees back to back? Professor Pozner thinks these companies could monitor what others are doing and follow the trend.

“It’s a little easier to say maybe Google is laying people off, Amazon is laying people off, Meta is laying people off, so it’s fine for us to do that too and it seems like it’s part of a larger trend,” Pozner said.

VIDEO: Here’s how Twitter employees find out they’ve been laid off after nearly 50% of the workforce has been cut

These layoffs also create what psychologists call survivor guilt.

“For those who have kept their jobs, there are a lot of challenges, anxiety,” said Michael Vicente Stanton, PhD, professor and clinical psychologist at Cal State East Bay and added, “There are studies that show that people can have symptoms similar to PTSD. Post-traumatic stress disorder.”

VIDEO: Bay Area tech giants announce mass same-day layoffs in what experts call ‘unusual’

Professor Vicente Staton has studied the stress of layoffs and says mental stress could translate into physical conditions.

MORE: A tech expert explains what Meta’s large-scale layoffs could mean for the Bay Area

“There are chemicals in the body that we release that are stress hormones. They’re really helpful in helping us deal with stress in the short term, but they’re actually very toxic to the body in the long term,” Stanton said.

Professor Vicente Staton recommends having honest conversations with your family about a possible layoff and developing a strategy for pivoting to a new industry or role in the event of a layoff.

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