The tech industry, once thought to be recession-proof, is now experiencing waves of layoffs across major companies in the United States. From startups to tech giants, businesses are cutting costs and jobs in response to economic uncertainty, rising interest rates, and over-hiring during the pandemic boom.
Meta Lays Off 11,000 Employees
Meta, the parent company of Facebook, announced it would lay off 11,000 employees or 13% of its global workforce. This represents the largest tech layoff of the year so far. Meta cites macroeconomic trends and excessive spending as reasons for the cuts. Other divisions like Meta Reality Labs, responsible for metaverse development, lost thousands of jobs as well.
Tech Layoffs Twitter Reduces Headcount After Musk Takeover
Twitter laid off nearly 3,700 employees shortly after Elon Musk acquired the company. Musk aims to reduce costs at the social media platform which he claimed was overstaffed. These layoffs affected teams across the engineering, communications, content curation, machine learning ethics, and marketing departments. More cuts may come soon under Musk’s management.
Tech Layoffs Amazon Lets Go 10,000 Employees
Amazon plans to cut around 10,000 jobs in corporate and technology roles in the coming months. This represents 3% of its white-collar workforce. Amazon had gone on a hiring spree during the pandemic to meet increased e-commerce demand. The retail giant is now making adjustments given economic concerns and the overstaffing.
Tech Layoffs -Other Tech Companies Follow Suit
Other major tech companies like Salesforce, Netflix, and Coinbase have laid off thousands of employees as well this year. Startups heavily funded by venture capital money during the pandemic are also letting go of workers in droves.
What This Means for the Tech Industry
The tech layoffs sweeping across America signify an economic cooldown in the industry. However, tech will likely remain a vital sector with continued demand. The current workforce reductions allow companies to lower expenses and realign business priorities for the road ahead. For laid-off employees, it presents an opportunity to pursue new career challenges and passions.