How is the US FAANG Bringing Down the Indian WITCH?

US FAANG which refers to the top 5 tech companies now pulling down the Indian WITCH

FAANG is an acronym that has been used umpteen times while referring to the top 5 tech stocks listed in the US stock market. Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Google (GOOGL) constitute the FAANG group of stocks. Meta is the parent company of Facebook while Alphabet is Google. The unparalleled run of the FAANG stocks till 2021 has made them stand out among the other stocks listed in the US stock market.

But now things seem to get changed as US FAANG bringing down the Indian WITCH and broad shifts in the economy, from inflation to global unrest, are creating opportunities that investors may want to consider now. From the easy money era to an environment with tighter liquidity, the technology sector may not see itself on a favourable platform. At the very same time, some sectors may experience renewed interest among investors amidst the current changing dynamics of the economic and political scenario. FAANG companies are trying too hard to minimize the costs by implementing harsh cost-cutting measures, and now Indian WITCH is running on the same path. 

There is a widely-held belief that when US FAANG stock prices decline and it will put a hard impact on other markets. There is no doubt that Indian WITCH companies did experience stock losses. The stock of one of the country's major software firms, Tata Consultancy Services, fell 5.4% in a year, whereas Meta got declined by 65.8% this year. US FAANG this year announced massive tech layoffs which have affected many tech workers. The WITCH companies for the past few months have freeze hiring and also announced tech layoffs to reduce the cost so that they can fight the recession. The WITCH companies have laid off countless number of tech professionals in the second half of 2022.

US FAANG Bringing Down the Indian WITCH

Companies like Meta, which announced the layoff of 11,000, stated that reduced spending by advertisers has been one of the reasons why the tech giant has been experiencing a loss in revenue. Both Google and Amazon are expected to sack thousands of employees very soon. Here is everything you need to know. Unlike some of the major tech companies, Amazon has officially announced the layoff of employees. While the company didn't reveal the exact number of employees that will be laid off, the reports have so far hinted that Amazon plans to sack as many as 20,000. In November, it was reported that 10,000 people will get fired, but the number has reportedly increased by a big margin. 

Amazon's CEO recently announced that the process of a layoff would continue for a few months and that the impacted employees will be informed once the company assesses everything. So, the number of reductions might have been increased as it is rigorously reviewing all the departments across the regions to save costs. Amazon recently said that it will reduce headcounts gradually and not at once. It confirmed that the process will continue until early 2023 and layoffs will be done because of the unusual and uncertain macroeconomic environment.