Morgan Stanley not sure other industries will copy tech company’s layoffs

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Tech companies are facing a toll as thousands of workers are shown the door amid economic uncertainty and falling ad revenue.

Does this mean that the same can be expected from other industries?

Morgan Stanley, for its part, is not so sure.

Analysts at the investment firm say the red marriages of Meta, Twitter, Amazon and other tech stalwarts shouldn’t be seen as a “harbinger of change” for all companies.

They cited the “idiosyncratic” hiring practices of tech companies, which often reflect the booming nature of Silicon Valley.

Even so, Morgan Stanley anticipates a “sharp” decline in job growth as rising interest rates put pressure on employers and increase the likelihood of a recession.

For me, the biggest red flag is the surveys showing that most CEOs think the economy is going to have a bad time next year, and that a recession – possibly a bad one – is almost certain.

You get the sense that many companies are now shooting first, asking questions later as they circle their tax wagons in anticipation of tougher times.

The bloodshed in the tech world provides cover for other industries to similarly make cuts.

I am not saying that widespread layoffs are inevitable.

But if a large, diversified company like Amazon, for example, is struggling, how can things be easier for others?

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