The global economy is facing turbulence as the Trump-led US administration escalates a tariff war, impacting both allies and rivals. With a new wave of tariffs set to take effect on April 2, international trade and economic stability are under threat. Companies, anticipating the consequences, are restructuring and cutting costs, leading to widespread layoffs.
Rising Layoff Wave: Global Companies Restructure Amid Economic Uncertainty
The trend of workforce reductions, which started post-pandemic, has intensified. IBM is reportedly planning mass layoffs in its Cloud Classic division while increasing hiring in India to manage costs. Infosys, a major Indian IT company, recently dismissed 45 trainees from its Mysuru campus, following a larger layoff of 300-400 trainees in February due to internal test failures.
Boeing, struggling after the 737 Max crisis, has also joined the layoff wave, cutting 180 jobs in its India operations in March. Meanwhile, Indian telecom giant BSNL is preparing for modernization by launching 5G and expanding 4G but is also set to reduce its workforce by 35%, affecting around 18,000 employees through a voluntary retirement scheme (VRS).
Tech and Finance Giants Slash Jobs Amid Cost-Cutting Measures
Zomato, a key player in the consumer tech sector, recently laid off over 300 employees from its customer service training unit, allegedly without notice or opportunity for improvement. In the banking sector, HSBC faced backlash for dismissing employees on the day they expected their annual bonuses.
Hewlett Packard Enterprise (HP) has also cut 2,500 jobs in early March. Major tech giants such as Meta, Google, Alphabet, and Amazon have all been trimming their workforce, with TikTok focusing on reducing its safety and trust teams.
Economic Uncertainty Drives Global Layoffs and Cost-Cutting Strategies
As layoffs continue across industries, the uncertainty surrounding tariffs and economic policies is pushing companies to adopt aggressive cost-cutting measures, signaling potential long-term consequences for global employment and economic stability.
Summary:
The global economy faces turmoil as the US escalates a tariff war, prompting widespread corporate layoffs. IBM, Infosys, Boeing, BSNL, Zomato, HSBC, HP, and major tech giants like Meta and Google are cutting jobs to reduce costs. Economic uncertainty is driving aggressive restructuring, impacting global employment and long-term stability.
