Why Amazon laying off 10,000 employees could be a signal of something more ominous

Amazon is planning to lay off as many as 10,000 employees in “corporate and technology” across the world, The New York Times reported Monday. This follows a spate of sackings and hiring freezes across the tech sector, most prominently by Meta, which laid off over 11,000 employees last week.

What is triggering this downturn in Big Tech?

The main reason is the contraction in demand as the world comes out of the Covid-19 pandemic. The pandemic-induced lockdowns forced people indoors and made them buy more online, spend more time on social media sites, consume more streaming content, and play games with others, are almost over.