Economic Downturn is Hitting the Tech Industry

Years of record highs for tech giants have just ended. But, as they say, what goes up must come down. Stocks are falling, startups are failing, and a possible recession threatens tech behemoths that seemed impregnable just a few years ago. A downturn in the economy could have serious consequences for businesses and their employees.

"This will be in the top-three corrections of the last 20 years — joining the 2008-2009 Great Recession and the 2000 dot-com crash," David Sacks, a co-founder and partner at Craft Ventures, previously told Insider. Workers will have to prepare for the disruption. A recent shortage of tech workers, combined with the so-called Great Resignation, provided workers with limitless opportunities and power. Layoffs and salary reductions may be on the way now.

However, not all businesses are doomed. Some businesses will prove to be "recession-proof" as their technology becomes standard in other companies' infrastructure.

Cloud companies are frequently thought to be well-positioned to withstand — and even thrive — market turmoil. However, tens of billions of dollars have gone down the drain at some of the world's most powerful corporations.