The tech industry has been rocked by recent economic woes. While once thought of as close to recession proof, companies from Netflix to Meta are suddenly experiencing serious financial setbacks. As the Washington Post reported last week: “Big tech is bracing for a possible recession, spooking other industries”. Meta (the company that owns Facebook) has seen its share prices drop by more than 50% this year, with its iconoclastic CEO, Mark Zuckerberg, “visibly frustrated” at recent company Q&As with employees.
There are a range of reasons for this downturn, including a troubling mix of reduced consumer spending and fears of an uncertain future. The tech-focused Nasdaq index has dropped 24% in value since January in this year alone, while lay-offs have been announced across the industry – with some reports counting more than 60,000 tech redundancies globally so far this year.
In addition to cutting staff, technology companies are passing on these problems to consumers. People are already facing higher prices for some streaming services, and more increases are expected. Netflix has raised prices for consumers in countries including the UK and the US. They are also trying to stop people from different households sharing passwords. Amazon has also been criticised for increasing its subscription fees recently for Prime delivery and streaming services.
Users have been cancelling subscriptions to cut costs. Many of these services have…