Why are tech giants like Apple, Netflix firing employees?

• Apple has let go of nearly 100 contract workers.
• Tech companies were hiring a lot up until last year.
• Economic uncertainty makes even biggest companies slow down.

The most recent company to lay off workers is Apple which has let go of nearly 100 contract workers, reported Bloomberg News.

Other tech giants like Meta, Microsoft and Amazon have taken similar steps this year.

It seems as if the tech sector is taking a break from hiring new people.

Market Place reported that tech companies were hiring a lot up until last year because pandemic lockdowns have increased the demand for their products.

However, things are now changing. JP Gownder at Forrester Research said that it now depends on the type of tech company we are discussing.

He said that there were some companies that were genuinely facing performance problems while others simply wanted to slow down and be cautious.

Giving Netflix's example, he said that it laid off 450 employees because it was struggling with new competition. 

Other companies were worried about the economy. Economic uncertainty makes even the biggest companies slow down and take preemptive steps to protect themselves.

Carolina Milanesi, a tech analyst with Creative Strategies said that after a big boom we saw in hiring, the slowed pace should be expected.