(KRON) — About 200 Oracle employees are out of a job, according to a notice from Oracle to the California Employment Development Department.

All employees worked at the former headquarters in Redwood City, now based in Austin, Texas. Jeff Bellisario, Bay Area Council Economic Institute executive director, said he was not surprised by the news.

“What this is though is another in a line of companies, announcing layoffs or announcing hiring freezes within our region so I think while we’re not at a wave of layoffs or recession, I think this is a sign companies are now planning for recession, planning for slower growth, and they’re doing that by reducing the labor cost,” said Bellisario.

Recently, Google and Facebook’s parent company, Meta, put a freeze on hiring. Tesla laid off more than 200 people during the summer months.

“I do think there are more announcements like this coming, and this is the beginning of what is likely to be a recession that we’re calling for possibly in the middle of 2023. We don’t see it necessarily being a deep recession it’s not gonna be like the Covid pandemic, it’s not gonna be like the financial crisis,” added Bellisario.

During the height of COVID, many tech companies continued to hire, but that’s part of the reason Bellisario believes they are being hit harder now.

“Many of these companies grew very quickly over the course of the pandemic so I think part of what we’re seeing now is a bit of a course Correction. Many of them maybe hired a bit too many people over the last two years and now they’re correcting those costs down,” said Bellisario.

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He also said with the evolution of remote work, many companies are operating differently and can accomplish just as much with fewer offices and people.

“We’re seeing this point where tech is in a down period. And tech seems to have higher highs and lower lows and I think we may be headed into one of those lower periods for the tech company and the bay area economy,” said Bellisario. “The key question now is can we grow back as quickly as we did in those last 10 years when things do rebound? How do we compete against Austin and Denver?”

Bellisario said tech job growth was in the negatives for San Francisco and San Mateo County in August. He said he wouldn’t be surprised if the numbers continue to trend downward.