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Mass Layoffs in Iran as Businesses Buckle Under Wartime Pressures

Mass layoffs are sweeping across Iran as businesses struggle under the strain of war and mounting economic pressure. After the United States and Israel launched strikes on industrial and infrastructure sites, and a blockade cut off much of Iran's oil exports and imports, companies across sectors have begun shedding workers. An Iranian official estimated that the conflict has led to the loss of one million jobs, with millions more indirectly affected.

The technology sector has been particularly hard hit following a government-imposed internet shutdown that has paralyzed digital businesses. Major firms have reduced staff or closed entirely, while industry leaders estimate daily economic losses in the tens of millions of dollars. A record surge in job applications reflects the growing desperation among workers.

Industrial employers face raw material shortages after key petrochemical and steel facilities were damaged, forcing factories to scale back or halt production. Labor representatives say many companies remain open in name only, relying on reduced hours or temporary leave instead of formal layoffs. A recent sharp increase in the minimum wage, intended to offset inflation, has further strained employers and accelerated job cuts.

The worsening crisis threatens government finances and risks reigniting public unrest that has flared repeatedly over the past decade. For many workers, including experienced professionals who have lost jobs multiple times in recent months, savings have run out and families are relying on relatives for support as prospects for new employment remain bleak.

Original article source: https://www.nytimes.com/2026/05/10/world/middleeast/iran-economy-layoffs.html
Source Id: 2026-05-1165284508

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