Are we in a Recession?
Businesses are struggling with interest rates and cash flow issues that resulted in massive layoffs in the tech industry. We can still learn how to survive this recession.
What caused the recession?
Let me explain:
The pandemic created an opportunity for people to increasingly turn to the Internet for work, shopping and socializing.
In response, tech companies went on a hiring spree to meet consumer demand.
This growth in tech employment started in late 2020 and lasted in 2021. At the same time, the Feds slashed interest rates in 2021 which enabled tech companies to raise capital and hire more.
In 2023, the downward trend continued…
In 2022 A total of 1,058 companies in tech laid off — that's more than in 2020 and 2021 combined. Amazon laid off 27,000 workers followed by Meta (21,000), Google (12,000) and Microsoft (10,000). In early 2023 companies like Twitter slashed more the 50% of their workforce.
Early in April 2023, CNN predicted 3 sectors are in deep recession:
So how to survive this recession:
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Focus on sectors in demand:
Over the past two years accommodation, food services, health care + social assistance are growing. The pandemic made finding people willing to work in these in-person service industries especially challenging, making it ideal for service startups.
What is the lesson for us, as service providers, to relook at industries that are not in the recession?
Get Rid of Expensive Apps
During the pandemic, I helped Aldo, a Canadian shoe manufacturer under bankruptcy, which is equivalent to US Chapter 11, cut costs by removing expensive apps like SFMC and moving them to cost-effective solutions like SendGrid, saving them 100s of thousands of dollars, among other things.
Cut your Cost
You can also save that cost today by using apps like Rabbito. Rabbito works as your Social Media Marketing Hub and you can save money by getting rid of expensive solutions like SFMC, HubSpot etc. See the link below to sign up and take advantage of a 50% discount today.
https://rabbito.io