Dozens of workers working in an Iranian production company have been laid off and production shut down as a result of U.S sanctions which pushed up prices of raw materials.
The production factory which has been operating for 16 years was forced to shut down as it was facing massive losses as prices of raw materials soared up.
“All our 45 workers are jobless now. The men are driving taxis and women are back to being housewives,” said CEO Farzad Rashidi.
According to reports, dozens of business owners across Iran show hundreds of companies have suspended production and thousands of workers are being laid off because of a hostile business climate mainly caused by new U.S. sanctions.
The Iranian rial has fallen to record lows and economic activity has slowed dramatically since U.S. President Donald Trump withdrew from the big powers’ nuclear deal with Tehran in May.
He imposed sanctions directed at purchases of U.S. dollars, gold trading, and the automotive industry in August. Iran’s vital oil and banking sectors were hit in November.
“We have lost around five billion rials ($120,000 at the official rate) in the last few months, so the board decided to suspend all activities for as long as the fluctuations in the currency market continue. It is stupid to keep driving when you see it’s a dead end,” Rashidi said.
The country has already experienced unrest this year, when young protesters angered by unemployment and high prices clashed with security forces. Official projections indicate unrest could flare up again as sanctions make the economic crisis worse.