Recently, layoffs hit a number of major technology companies. For example, Twitter has laid off thousands of its employees, Meta has laid off around 11,000 employees and Amazon has just cut 18,000 of its workforce.
There are many more technology companies that are downsizing on a large or small scale. The reason is mainly facing the deteriorating economy. Now, the majority of those who have been laid off are high-paid employees.
Dubbed the white-collar recession, the US economy is showing signs that 2023 could be a tough year for high-income people with cushy office jobs.
Wages for the lowest earners are rising faster than those for the higher earners, and white-collar workers are facing major layoffs. The technology industry cut a total of more than 150,000 jobs last year.
As quoted by us from the Daily Mail, the average salary on Meta, Amazon and Twitter is USD 232,626 per year, far above the income per capita in Uncle Sam's country. Now, they are under great threat.
Meanwhile, blue-collar workers are now in high demand, and their wages are rising more rapidly than higher-income workers. In the US in November, wages for bottom workers rose 7.4% from a year ago, outpacing inflation, while top wages rose only 4.8%.
According to analysis released by Layoffs.fyi, the technology business is now among the sectors with the largest number of layoffs, even increasing rapidly over the past few months.
As we quote from the Daily Mail, the worst layoffs were made by parent Facebook Meta and Amazon, both of which suffered from deteriorating financial performance in 2022.