The massive job cuts by Amazon, one of the biggest private employers in the US, show the wave of layoff sweeping through the tech sector could stretch into 2023 as companies rush to cut costs, analysts said on Thursday.

As a demand boom during the pandemic rapidly turns into bust, tech companies shed more than 150,000 workers in 2022, according to tracking site Layoffs.fyi, a number that is growing as growth in the world’s biggest economies start to slow.

“More layoffs are certainly possible … given the scale of investment we saw in 2020-21, we would probably think that some degree of caution is probably appropriate,” said Russ Mould, investment director at AJ Bell.

Coming out of a global pandemic, job cuts in 2022 surged 649 percent from 2021, led by for technology companies, according to executive coaching firm Challenger, Gray & Christmas.

The drop in demand amid a steep rise in borrowing costs has led several executives from the sector to admit they hired in excess during the COVID-19 crisis.

Meta axed 11,000 jobs last year, with Chief Executive Mark Zuckerberg saying he had wrongly expected that the pandemic boom would keep on going.

Tech giants Microsoft and Google-parent Alphabet have already hinted at cost-cuts, including layoffs.

Salesforce top boss Marc Benioff said on Wednesday the enterprise software company had hired “too many people” as he announced plans to cut 10 percent of the jobs.

For Amazon, growth in its cloud unit that brings most of its profit has slowed as businesses cut back spending, while its online retail unit is reeling from strained consumer budgets due to rising prices.

The growing crisis has brought back memories of the dot-com bubble at the start of the century and the 2008 financial crisis when tens of thousands lost jobs.

“Some of us will remember 2000 to 2003 after a massive bubble fed by cheap money, high investor expectations and plentiful cash,” said Mould. “Whether we see a repetition or not will be very interesting as there is a danger of that.”

© Thomson Reuters 2023