The global recession has also hit giants like Google (Alphabet) and Microsoft.
As companies cut their advertising budgets, sales rose just 6% to $69bn in the past three months, Alphabet said.
Demand for computers and other technology declined, Microsoft said. Sales rose 11% to $50.1bn in the three months, the slowest revenue growth in five years.
Consumers and businesses are losing ground as product prices and interest rates rise around the world. Multinational American companies have also been affected by the strengthening of the US dollar. This has made it more expensive to sell products abroad.
Alphabet’s profits fell 30% last quarter to $13.9bn. The company’s sales have slowed in the previous five quarters. If this situation continues, it will be a frustrating time for Google.
Microsoft said demand for PCs and cloud computing technology has slowed. At the same time, sales of Xbox video games have also declined.
Companies like Alphabet and Microsoft have also been badly hit in the stock market.
Due to this current situation, Microsoft has reduced the number of jobs. Alphabet is also looking to cut jobs. Netflix and Twitter have also laid off employees.
