In mid-March, Babak, a 49-year-old Iranian product designer at a tech company in Tehran, was called into his boss’s office and told that his position was being eliminated.
Iran’s government had shut down the internet two weeks earlier, at the outset of U.S.-Israeli war on the country, throwing the country’s tech industry into chaos and making Babak’s job impossible.
“Throughout my career, I have worked hard, continuously learned, and tried to grow,” said Babak, who sent voice messages to The New York Times, and asked to be identified only by his first name to avoid government reprisal. “Yet at this stage of my life, I find myself in an uncertain and ambiguous position,” he said.
Babak’s experience has become increasingly common throughout Iran as companies have instituted round after round of layoffs in recent weeks, according to interviews with businesses and employees and Iranian news reports.
A man pulling a cart filled with boxes at an intersection near a wholesale market in Tehran on Saturday..
For the Trump administration, Iran’s severe economic struggles are part of a strategy to pressure the country into submission. “I hope it fails,” President Trump told reporters this month, of Iran’s economy. “You know why? Because I want to win.”
Iranian officials insist that pressure will not work and that the country will not surrender.
Many of those companies are buckling under wartime pressures. During the war, the U.S. and Israel hit Iranian industrial sites that produce key raw materials, as well as key infrastructure. And a U.S.-imposed blockade on Iran’s ports, in place since a cease-fire last month, has cut off much of its oil exports and disrupted imports of other goods.
An Iranian government official, Gholamhossein Mohammadi, estimated that the war has caused the loss of one million jobs, “and the direct and indirect unemployment of two million people,” in comments reported by the news outlet Tasnim.
On April 25, an Iranian job search platform reported a record 318,000 resumes submitted in a single day, a figure that was 50 percent higher than the previous record, according to the news site Asr Iran.
Even before the war, Iran’s economy had been struggling from years of sanctions, entrenched corruption and mismanagement, while a spiraling currency has eroded Iranians’ purchasing power.
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People at a wholesale shop in Tehran on Saturday..
“A strange and overwhelming vortex of economic problems has emerged, and it continues to grow more complex,” Amir Hossein Khaleghi, an economist in Isfahan, said in an interview. Before the war, Iran was “already in a very poor economic situation, facing a set of mega-crises,” he said.
The private sector’s latest struggles portend a deepening crisis for Iran’s government. Its proposed budget for the year, put forward before the war, already represented a sharp reduction in public spending when factored for inflation, and depended more on taxation than in the past. Now, tax revenues from the private sector are likely to drop significantly.
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Crowds inside the sprawling Grand Bazaar in Tehran on Saturday. Imports of goods have been affected by the war.
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