The world has seen its fair share of shake-ups since the onset of 2020! The seismic shift that came with the pandemic is changing the tech world landscape to this day in the form of economic downturn, layoffs, downsizing and more recently, hiring freeze.
Yet after an initial panic that spread like wildfire, many tech companies migrated from surviving to thriving in the pandemic era as the low interest rates, soaring markets, changing consumer behavior and widely accepted remotely distributed workforce model outweighed any disruptions caused by the COVID-19.
Economic downturn and its impact on the tech industry
Although the tech world bounced back from the pandemic, there are speculations from the industry gurus that we are about to witness some serious aftershocks. The stock market drop in early May 2022, combined with the continued crises of the war in Ukraine, domestic inflation, and a pandemic now well into its third year, has begun to cause significant pain and damage at later-stage startups. Even the heavy hitters and giants in the game are impacted as Apple lost $200 billion in value, Amazon announced a hiring freeze and other names like Airlift and SWVL were forced to shut down altogether under the pressure of the current economic downturn. Sadly, It seems likely that this trend will trickle down to smaller companies in the coming months.
Remote work models and HireTekis
In this so-called second wave of the economic crunch, there are however businesses and work models that are making great strides and creating ripples in the tech world by adapting, evolving and even scaling in this volatile environment. One such example is HireTekis. HireTekis hires the top 1% of software engineers and places them in Silicon Valley startups and also offers to set up a remote developer team based on the company's needs in under a day. And with its unique remote work model, HireTekis has very intelligently navigated through this pandemic and economic downturn by leveraging and adapting its digital capabilities and embracing change where required. Recently, Hiretekis has launched campaigns like Hiring Reboot 2023 to create a spark in this rather gloomy atmosphere by opening its doors and encouraging people to apply and get hired.
The age of digital transformation
The pandemic was really a reality check for businesses that have been reluctant to embrace digital transformation and now find themselves woefully unprepared. If there were any lingering doubts about the necessity of digital transformation to business longevity, these events have surely silenced them. The future of the tech world may seem uncertain for many, but as they say, crisis breeds ingenuity, and good ideas put into practice can propel any business to breakout performance. Organizations that rest on their existing digital structures can be surpassed by those that invest in adapting their digital capabilities for the post-coronavirus future as we see with the HireTekis example.
Frequently Asked Questions
Are we in a recession 2022?
Last week, Bank of America followed an earlier forecast by Japanese investment bank Nomura, predicting a “mild” recession in the remaining months of 2022. The outlook is a revision of earlier forecasts that only predicted slowing economic growth.
What happens to companies in a recession?
Businesses large and small face declines in sales and profits in a recession. Their efforts to cut costs may include layoffs and cuts in capital spending, marketing and research. Recessions may curb credit access, slow collections, and spur business bankruptcies.
How do businesses respond to recession?
During recessions, of course, consumers set stricter priorities and reduce their spending. As sales start to drop, businesses typically cut costs, reduce prices, and postpone new investments.
How to survive a recession? Some of the things you can do to survive a recession are:
- Build a 12- to 24-month emergency fund
- Minimize high-interest debt
- Prepare to borrow money
- Keep your credit accounts active
- If you have low-interest mortgage debt, stay put.
- Buy in bulk if you can afford to.
How long will the hiring freeze last?
They can sometimes last between three and six months. This should be seen as a completely normal amount of time for financial balance or employee morale to be reacquired.
