Bloomberg reports that Amazon has laid off an additional 9,000 employees, following a trend in the technology sector. Meta, the parent company of Facebook, let off 10,000 employees in a second round of layoffs, months after laying off 11,000 staff.

It is assumed that the continued layoffs in the technology sector are a response to the Federal Reserve’s interest rate hikes in 2022 to battle inflation and the banking industry’s current volatility.

Andy Jassy, the CEO of Amazon, had already informed staff about imminent layoffs in November. Today, we are observing the effects of these warnings in the firings that are currently occurring. Jassy noted that the layoffs were caused by uncertain economic developments and rapid hiring in the past.

Job Cuts Raise Concerns about the Stability of the Tech Industry

The layoffs are a severe blow to the affected individuals and their families, and they raise concerns about the viability of the technology sector as a whole. But, the scenario is also suggestive of the country’s and the world’s bigger economic problems, including inflation and the potential for additional banking crises.

As the internet industry and other industries manage these obstacles, it remains to be seen what effect the layoffs will have on the larger economy and if Amazon and Meta will be able to survive the storm.