The pandemic time was a nightmare in terms of health emergency and death toll, but financially it helped a lot through free distribution of money by the government in the USA.
Adding to this work from home brought in new ideas to the people to buy houses far away from the city limits at cheaper rates. This led to the sudden rise in real estate. and the housing market has seen a bubble.
The people who had money in hand also invested in share market which resulted in an instant pep to the sensitive index. Everything looked good for quite some time though there was an increase in inflation.
Now the companies are facing recession fears and the repercussions are also seen. The share market is seeing losses day by day. Companies are struggling to make the both ends meet and so going ahead with layoffs.
Here is a list of the alarming situation:
Meta - laid off 11,000 (13%)
Twitter - laid off 3,700 (50%)
Intel, Snap - layoffs 20%
Robinhood – layoffs 30%
Stripe, Salesforce, Lyft - layoffs ~13%
Microsoft, Shopify, Netflix, Coinbase - layoffs
Apple, Amazon, Disney, Linkedin - hiring freezes
Experts say that the situation will be worse to worst by the mid of 2023 and it will be tough for silicon valley techies. People are not buying houses now and thus the real estate market has slowed down.
Already there is a steep decrease of 20-30% of house rates and may go down to 50% in many places as per the economists.