A decade ago, many people thought tech layoffs were unheard of. Today, however, it appears the industry that’s been viewed as the unstoppable engine of modern innovation is suddenly having to reckon with layoffs. Across the country, employees at big tech companies like Google, Microsoft, Amazon, Facebook, Twitter, Apple, Meta, and Cisco are finding themselves jobless or facing serious cutbacks.
What’s the cause of this reversal? The answer lies in the tech industry’s relationship with investors. With pressure to meet Wall Street’s expectations and keep stock prices high, tech companies often need to reduce costs by laying off employees. Investors are also demanding more return on investment, so companies that want to maximize profits will have to focus their efforts on areas where they see the greatest potential for growth, such as artificial intelligence and automation.
The reshuffling of the workforce can be painful for those who are left behind. For those whose jobs were cut, it may mean their access to work accounts is revoked or they get an impersonal email from their employer. The stress is even higher for those who have family to support and school bills to pay, or are deeply entrenched in their career paths.
Despite the uptick in layoffs, there are still plenty of opportunities for those looking to work in the tech sector. Those who are laid off from bigger tech companies can consider a non-tech startup or other industries that need tech talent, such as healthcare, retail, manufacturing, or the federal government. Others can upskill in AI and cybersecurity to stay relevant in the field or seek positions at smaller tech-focused startups.