The Trend of Mass Layoffs Has Not Yet Affected Croatia

From Klarna to Netflix, Microsoft, and Meta, major technology giants have been announcing information about mass layoffs daily in recent months due to fears of a recession caused by the deteriorating economic situation worldwide. However, it seems that the trend of mass layoffs has not yet reached Croatia.

In the past five years, according to data from the Croatian Employment Service, the highest number of business-related dismissals occurred in 2020 during the peak of the coronavirus pandemic when out of a total of 163,109 newly registered users of the CES, just under 26 percent, or a total of 41,857 dismissed individuals, were business-related.

– In 2021, the labor market was recovering, so on a monthly basis, we can see that the share of such dismissals was decreasing, especially in the second half of the year. In 2022, we have not yet reached pre-pandemic levels, which is to be expected as the global economy is exposed to new global risks, but the share of the aforementioned dismissals has a downward trend in 2022, so we hope that this will continue, “the CES stated.

In the first six months of this year, there were 8,677 business-related dismissals, which is 16 percent of the total number of new users of the CES, while last year this percentage from January 1 to December 31 was 15.63 percent.

The global labor market situation remains uncertain. Notably, Twitter has laid off as much as 30 percent of its employees in the recruitment department, and Meta announced this month the layoff of around 350 workers. Tesla has laid off about 200 employees, and automotive giant Ford has announced the layoff of 8,000 workers to encourage the transition to electric vehicles.

So far, this trend of laying off a large number of employees has not affected Croatian technology companies.