Economic downturn in tech could affect Americans in worst way

close video Big Tech layoffs: ‘Worst is on the way,’ tech insider says

Microsoft, Meta, Twitter and other big tech firms will continue layoffs and hiring freezes as companies look to cut cost, Bay Area recruiting site founder says.

Americans could suffer from Big Tech firms laying off workers and freezing hiring as the economy remains volatile, the founder of a Bay Area job search community told Fox News. 

"The average American will probably be impacted, at least in some form, by what may happen in this next economic downturn in the tech industry," Albert's List founder Albert Qian said. "We touch these things every single day, whether it's Google Search, a store on Amazon, an Apple device."

"When the Microsofts, the Googles, the Amazons, the Twitters, when those companies start laying off people, that's when we need to start paying attention," he continued.

Major tech companies have taken steps to cut their workforce in anticipation of an economic downturn in the coming months. Microsoft, for example, recently announced layoffs across multiple divisions, and Meta implemented a hiring freeze.

PELOTON CUTS ANOTHER 500 JOBS, COMPLETING 'VAST MAJORITY' OF RESTRUCTURINGWATCH TO LEARN HOW TECH LAYOFFS COULD HURT AVERAGE AMERICANS: close video Big Tech layoffs: ‘Worst is on the way,’ tech insider says

Microsoft, Meta, Twitter and other big tech firms will continue layoffs and hiring freezes as companies look to cut cost, Bay Area recruiting site founder says.

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"We're going through a lot of uncertainty in the technology industry right now," Qian told Fox News. "Given where our inflation report keeps going, and I think given what I'm hearing from jobseekers within my community, I think the worst is still on its way."

As recession looms and as Americans grapple with the worst inflation in 40 years, tech companies could see demand for their products dry up, the Albert's List founder said. 

"These companies like Apple, Amazon, have factories in the United States or warehouses that depend on a lot of local talent," Qian said. "And they see the demand drop off where they may not need to produce as many devices or ship as many packages every day."

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"The companies to be most concerned about as to where they may be going next with freezes and layoffs will be Meta and Twitter," Qian continued. "We're seeing a lot of rumors coming out as to whether Elon will want to lay people off after he acquires the company fully."

Tesla founder Elon Musk attends Offshore Northern Seas 2022 in Stavanger, Norway, Aug. 29, 2022. (NTB/Carina Johansen via REUTERS / Reuters Photos)

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Musk reportedly told investors he would cut 75% of Twitter's staff, though the Tesla CEO later said that wasn't the case.

Regardless, hiring at the social media giant has been frozen for the most part, Qian told Fox News. After finalizing the deal to purchase the social media company this week, Musk immediately fired several top Twitter executives.   

"There are some companies that are going to continue with their freezes and move into layoffs while some companies are better positioned and will be okay and either just won't be hiring or be hiring very selectively in the next couple of months to a couple of quarters," Qian said. "Things are going to get a little bit worse before they get a lot better."