The tech industry has seen a massive rise in layoffs in the past year, with more than 216,000 tech employees having been laid off since the start of 2022.[0] This has been compounded by the economic downturn created by the pandemic, with many tech companies having to downsize their workforce.
Silicon Valley, which is home to top tech firms, has seen 19,500 job cuts in the region in the past year.[1] This has been accompanied by fresh layoffs in companies like Microsoft, Amazon, Intel, Twitter, Salesforce, PayPal, RingCentral and Zymergen.[2] These eight companies have filed for layoffs with the state on or after November 1, 2022.[3]
The layoffs are also affecting Silicon Valley’s economy. It is estimated that Silicon Valley contributes to 9.6 percent of total employment in the province, and accounts for 13.1 percent of California’s total gross domestic production or GDP.[4]
Due to an overabundance of employees hired during the pandemic, the tech industry is now having to let go of some personnel.[5] Those who were able to secure a higher salary for themselves are now more susceptible to being let go.[5] Furthermore, tech companies such as Zoom have cut their workforce by 15 percent, which has been driven by the return to the office and the advancement of other video conferencing services that are aligned with other services, like Microsoft Teams.[6]
Overall, the tech industry has still grown at nearly twice the rate of over-all employment in the region.[7] However, the cost-cutting measures have caused bad will and distrust amongst those directly affected and left a wake of anxiety amongst those who remain at the company.[8]
The future of the tech industry could be in for a rude awakening, as many experts predict that recession fears could continue in days to come and the number of layoffs in the tech industry is baffling, with no sign of them going away any time soon.[9]
0. “How layoffs, lottery worries with H-1B visas are steering people to the EB-5 Visa” Economic Times, 13 Feb. 2023, https://economictimes.indiatimes.com/nri/work/how-layoffs-lottery-worries-with-h-1b-visas-are-steering-people-to-the-eb-5-visa/articleshow/97823423.cms
1. “What’s Behind the Tech Layoffs?” INSEAD Knowledge, 16 Feb. 2023, https://knowledge.insead.edu/career/whats-behind-tech-layoffs
2. “Tech, biotech firms in unabated layoff binge” Bizz Buzz, 14 Feb. 2023, https://www.bizzbuzz.news/industry/infotech/tech-biotech-firms-in-unabated-layoff-binge-1198111
3. “Job cuts widen as tech, biotech firms plan fresh rounds of layoffs” The Mercury News, 13 Feb. 2023, https://www.mercurynews.com/2023/02/13/tech-companies-launch-second-rounds-of-layoffs-as-job-cuts-widen
4. “What layoffs? Wealth of Silicon Valley’s eight billionaires tops 50% of households” Moneycontrol, 16 Feb. 2023, https://www.moneycontrol.com/news/business/what-layoffs-silicon-valleys-eight-billionaires-own-over-50-of-households-10101801.html
5. “Bryant’s Mohan: Layoffs in the tech Industry causing social contagion” Valley Breeze, 16 Feb. 2023, https://www.valleybreeze.com/bryants-mohan-layoffs-in-the-tech-industry-causing-social-contagion/article_ddbc3238-a769-11ed-8d07-93746ecd8b64.html
6. “Tech layoffs: what’s really going on?” DIGIT.FYI, 16 Feb. 2023, https://www.digit.fyi/big-tech-layoffs-what-you-need-to-know
7. “What Layoffs? Data Shows Silicon Valley Is More Boom Than Bust” CNET, 15 Feb. 2023, https://www.cnet.com/culture/what-layoffs-data-shows-silicon-valley-is-more-boom-than-bust
8. “Are Big Layoffs In Big Tech A Bad Sign For Well-Being In The Workplace?” Forbes, 16 Feb. 2023, https://www.forbes.com/sites/nazbeheshti/2023/02/16/are-big-layoffs-in-big-tech-a-bad-sign-for-well-being-in-the-workplace/
9. “Tech Layoffs: Why Tech Is Getting Hit so Hard” CMSWire, 16 Feb. 2023, https://www.cmswire.com/customer-experience/tech-layoffs-why-tech-is-getting-hit-so-hard/