As others stated a small portion of that was due to over-hiring, some to follow the layoff trend and some to make the earnings call look good.

But from what some experts are saying; there’s also another factor, which is even worse.

There’s a looming threat of a recession hitting in a few months (which is said to be a much bigger recession than the post-Covid one). And this recession will be tied to the Commercial Real-Estate Bubble.

They are saying that it will be like the 2009 Mortgage Crisis and will be very disruptive.

There’s this theory that companies are reducing their headcount to prepare for this recession by reducing their expenses to the minimum. Which makes sense.

For the companies without savings that is a must but the ugly part is that you see big names with huge amounts of money in the bank laying off people as well.

Well, because they don’t want to invest that money on the people, they will use all that money to buy smaller companies when the recession hits. All big tech with enough money in the bank is rooting for the recession to happen so they can buy everything for very cheap and grow even more.