The rapid digital transformation had boosted the progress of the global IT industry over the past few years which led to high recruitment, better remunerations, and bigger horizons to scale. However, the ongoing global recession has pushed the brakes down, and hard- resulting in a tech winter. This is evident from the mass layoffs of social media platforms Twitter and Meta. Hashcash CEO Raj Chowdhury aired his views regarding the recent wave of layoffs, mentioning that the downsizing will be detrimental to the organization’s reputation and will likely reflect the organization’s employee concerns in a poor light.
A Tech Winter Across Silicon Valley?
It is not just Twitter’s 50% downsizing(new chief Elon Musk has currently realigned from his previous stance) or Meta’s layoff of 11000 personnel- elements of an imminent tech winter is evident across other major players of Silicon Valley as well. While Meta explains that they are currently overstaffed, Microsoft has decreased its workforce by 1% under the moniker of structural adjustment. Other companies following suit include Stripe(14%), Lyft(13%). Organizations like Amazon and Apple have meanwhile put a halt on current recruitments.
HashCash CEO and noted blockchain pioneer Raj Chowdhury states, “The companies going with mass layoff have a price to pay in morale, performance, and brand value. Removing loyal high-performing talents from your arsenal is not a strategic initiative but a quick and shabby easy fix.”
Expansion Across Inflation
While a large segment of workforce companies are focusing on workforce reduction, HashCash is treading the opposite path, planning for expansion across India and the Middle East. The company has previously announced plans of recruiting at least 100 personnel- both freshers and experienced willing to expand crypto markets. The company has plans to enter the metaverse segment in the upcoming year, as well as an R&D center in the Middle East.
“It might look like an emergency move or the checkmate-avoidance move, but giving away pink slips is not going to improve profits- the right talent will,” concluded Chowdhury, in addition to highlighting blockchain’s role in crypto security and educations system management.
Institutions downsizing to address the current global recession reflect a poor foresight in raising the hopes and aspirations of talented employees, only to crash them on the ground. There will be benefits in the short term, but their reputation will be tainted in the long run.