Will the mass layoffs, especially in the technology and finance sector, affect the shipping and maritime sector? What about hiring and firing in the companies you work for?
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@hasan-ibrahimov Flexport is doing something different in a sense that, they are cutting of 20% but hiring 400 engineers, interesting approach.
Check the article:
Flexport Lays Off 20 Percent of Workforce, Hires More Engineers
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I don’t think so, but global economic recession may eventually lead some layoffs as it affects the whole economy
this is a difficult one - shipping is highly cyclical industry - it is closely linked to global trade and economy but i am not sure it is tightly correlated with technology and finance. Also, shipping industry itself has very different segments/markets - container, bulk, tanker - each category has its own differentiated market. When we say shipping is cyclical we also primarily refer to the fact that there may be oversupply of shipping capacity and as a result the freight / cargo rates may plummet. This can happen even during normal economic times.
It’s true that the shipping industry is quite unique in its cyclical nature and segmentation, as @ali-gara mentioned. While technology and finance sectors might experience mass layoffs, it doesn’t necessarily mean that the shipping and maritime sector will be directly affected in the same way. However, it’s important to keep in mind that these industries are interconnected, and a global economic recession could eventually lead to some layoffs in the shipping sector, as @chingiz pointed out.
In the case of Flexport, their approach of laying off 20% of their workforce while hiring 400 engineers highlights a shift in priorities toward more technology-driven solutions. This could signal a trend in the shipping industry to invest more in technology and digitalization, which might create new job opportunities for those with relevant skills.
Ultimately, the impact of layoffs in technology and finance sectors on the shipping and maritime industry will depend on various factors, such as the overall health of the global economy, the balance of supply and demand in shipping, and the willingness of shipping companies to adopt new technologies.
Mass layoffs can happen in the maritime industry due to various reasons such as economic downturns, changes in market conditions, and advancements in technology. The COVID-19 pandemic has also had a significant impact on the industry, leading to disruptions in global trade, reduced demand for goods, and financial difficulties for many shipping companies, resulting in layoffs. However, the extent and severity of these layoffs can vary depending on the specific sector and the economic conditions at the time.