You can’t turn on the news or scroll through social media without hearing about a new tech layoff. Many people take this to mean that big tech companies are struggling during tough economic times when, in reality, most are doing just fine. It’s also a common misconception that layoffs happen because a company can’t afford to pay employees, when the truth is it’s more about profit per employee and maintaining business continuity.
It’s also important to remember that working in the tech industry is no longer synonymous with long-term job security. The emergence of AI has reshaped the workforce, making some roles obsolete. Mid-career professionals are especially vulnerable to this because they’re accustomed to a certain level of stability in their jobs, but that kind of security no longer exists.
Another reason why it’s possible that a lot of large tech companies are implementing layoffs is because their growth rates have dropped back down to pre-pandemic levels. This is why you’re seeing companies like Meta, Salesforce, TikTok, and Elon Musk’s Twitter letting workers go.
Even if a company is doing well financially, the reality is that technology is always changing and keeping up with these changes requires a steady stream of fresh ideas. Rather than continuing to invest in the same types of projects that have worked well in the past, it’s more beneficial for some companies to let employees go and shift their resources towards more innovative endeavors.