Businesses in Iran have resorted to mass layoffs due to the economic struggle caused by the war with the US and Israel and the ensuing blockade of the Strait of Hormuz, The New York Times reported Sunday, citing Iranian business sources.

According to the sources, dozens of major tech companies have laid off hundreds of employees across all sectors, with one labor leader saying some 3.5 million workers could be affected by the trend in Iran’s industrial sector alone.

The private sector struggles are signs of a “deepening crisis” for the regime, the report said, as mass layoffs and business closures will greatly decrease tax revenue, which the government has increasingly relied on during trade shutdowns caused by the war.

The report of mass layoffs comes as US President Donald Trump has opted to squeeze Iran’s economy through his blockade of the country’s ports, causing billions of dollars in lost oil revenue, with Trump saying he hopes the Iranian economy will collapse under pressure, and other American officials saying the US is “suffocating the regime.”

Iran’s new supreme leader, Ayatollah Mojtaba Khamenei, has tried to push back on the problem, urging companies to avoid layoffs “to the extent possible.”

However, his regime’s harsh wartime measures, especially its near-complete internet shutdown, have caused........

© The Times of Israel