The tech industry has been hit hard by job losses in 2023, with more than 2.5 lakh employees losing their jobs due to layoffs. Over 1,000 companies laid off 154,336 workers in 2022, as per data from the layoffs tracking site Layoffs.fyi.[0] In the US alone, more than 20,000 people have been laid off in the Silicon Valley, with many workers in India receiving pink slips amid deepening global macroeconomic conditions.[1]
In the month of February alone, more than 17,400 employees in the tech industry have lost jobs globally.[0] A review of the WARN notices reveals that six out of the eight companies have submitted disclosures of intended job reductions this year.[2] Microsoft, Amazon, Intel, Twitter, Salesforce, PayPal, RingCentral, and Zymergen have all filed WARN notices that reflect at least two distinct rounds of layoffs.[3]
Tim Cook recently called layoffs a “last resort kind of thing,” whereas tech giants like Amazon, Google, and Meta have laid off thousands of employees recently.[4] “We want to manage costs in other ways to the degree that we can,” Cook said.[5] However, Apple is allegedly firing contractors outright, instead of waiting for contracts to expire.[6]
Joint Venture Silicon Valley’s annual Silicon Valley Index gave an overview of the region’s economy and health in the past year.[7] It noted that the region added 88,000 jobs between mid-2021 and mid-2022, a faster rate than the rest of the country.[8] About 35% of people in Silicon Valley worked from home in 2022, up 7% from 2021, representing the highest concentration of remote workers in the nation.[9]
The report also highlighted the staggering wealth gaps in Silicon Valley.[10] An estimated $63 billion in liquid wealth is held among only those with primary residences in San Mateo or Santa Clara Counties, equivalent to an average that is 21,000 times more than each of the approximately 500,000 households in the bottom 50%.[11] The top 0.001% of households hold an estimated 4% of the collective wealth, and the top 1% hold about 37%.[9]
The tech industry has still grown at nearly twice the rate of overall employment in the region, the study found.[8] However, more major layoffs are forecast to continue in the months to come, and the possibility of a recession still looms over the horizon.[12]
0. “IT Layoffs 2023: Over 17,400 Tech Employees got Fired in Feb Globally to Date” Zee News, 12 Feb. 2023, https://zeenews.india.com/companies/it-layoffs-2023-over-17400-tech-employees-got-fired-in-feb-globally-to-date-2572552.html
1. “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
2. “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
3. “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
4. “Apple has begun firing contractors amid mass tech layoffs: sources” New York Post , 16 Feb. 2023, https://nypost.com/2023/02/16/apple-has-begun-firing-contractors-amid-tech-layoffs-sources
5. “Report: Apple continues laying off contractors, impacting ‘hundreds’ of people in recent days” 9to5Mac, 16 Feb. 2023, https://9to5mac.com/2023/02/16/apple-layoffs-contractors-report
6. “Apple may be cutting contractors in an effort to slash costs” AppleInsider, 16 Feb. 2023, https://appleinsider.com/articles/23/02/16/apple-may-be-cutting-contractors-in-an-effort-to-cut-costs
7. “State of the Valley report for 2023 shows region in state of ‘flux’ – Silicon Valley Business Journal” The Business Journals, 15 Feb. 2023, https://www.bizjournals.com/sanjose/news/2023/02/15/p4-cover-state-of-the-valley.html
8. “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
9. “Booms and busts: Silicon Valley economy divided – San José Spotlight” San José Spotlight, 14 Feb. 2023, https://sanjosespotlight.com/booms-and-busts-silicon-valley-santa-clara-county-san-jose-economy-divided/
10. “What’s Behind the Tech Layoffs?” INSEAD Knowledge, 16 Feb. 2023, https://knowledge.insead.edu/career/whats-behind-tech-layoffs
11. “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
12. “Tech layoffs: Is Silicon Valley headed for another dot-com bust?” KRON4, 16 Feb. 2023, https://www.kron4.com/news/bay-area/tech-layoffs-is-silicon-valley-headed-for-another-dot-com-bust/