Iranian companies are undergoing massive restructuring as the prolonged war with the United States shakes the country's economy. Damage to industrial facilities, port blockades, and government-imposed internet shutdowns have combined to spread shock throughout Iran's economy.
The New York Times reported Monday that corporate restructuring and layoffs have continued across Iran following the U.S.-Iran war. The information technology (IT) sector has been hit hardest by the government's internet shutdown, rapidly increasing the ranks of the unemployed, according to the report.
Gholamhossein Mohammadi, an Iranian government official, said the war has eliminated approximately 1 million jobs and left 2 million people directly or indirectly unemployed.
On April 25, one Iranian job platform received 318,000 resumes in a single day, a record high.
Since the war began, attacks on key raw-material production facilities and critical infrastructure, combined with the U.S. port blockade against Iran, have deepened the economic crisis.
Iran's economy had already been struggling before the war due to long-standing sanctions, corruption, policy failures, and a plunging currency. With war, internet shutdowns, and port blockades now added, the burden on companies has reached a breaking point.
The digital sector in particular has been effectively paralyzed by the government's internet shutdown. The digital industry had long been considered a flagship sector showcasing the growth potential of Iran's economy.
An Iranian IT industry lobbying group estimated that the government's internet shutdown is causing direct and indirect losses of up to $80 million per day.
E-commerce company Digikala recently laid off 200 employees, while another e-commerce firm, Kamva, was unable to withstand the fallout and declared bankruptcy.
The industrial sector is in a similar situation. A textile factory in western Iran laid off 700 of its 800 workers, while a factory in the northern region reportedly cut 500 jobs. Mehdi Bostanchi, chairman of Iran's Industrial Coordination Committee, warned that up to 3.5 million workers could be affected.
The NYT reported that even without official layoff announcements, a significant number of companies have effectively halted production and are unable to operate normally. Employment insecurity is spreading rapidly through non-renewal of contracts, reduced working hours, and forced leaves of absence.
The Iranian government also appears to recognize the severity of the situation and is responding. Mojtaba Khamenei, Iran's supreme leader, recently urged companies to "refrain from layoffs as much as possible" in a statement marking Workers' and Teachers' Day.
However, some critics say the government's response is adding to the burden on businesses.
In March, the Iranian government raised the minimum wage by 60% to reflect surging prices, but this has increased companies' labor costs and accelerated layoffs, according to analysts.
The NYT reported that many companies are already unable to operate normally, making further restructuring highly likely.
Amir Hossein Khaleghi, an Iranian economist, said, "Iran was already in a very serious economic crisis even before the war. The compounded economic problems have become more complex and severe since the war began."
Meanwhile, U.S. President Donald Trump has been using Iran's economic crisis as part of his pressure strategy against Tehran. "I want Iran's economy to fail," he said. "That's how America can win."
Iran's government, however, has maintained that it will not yield to economic pressure.
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