More than a year after the worst tech layoffs since the dot-com bubble burst, workers are mourning the loss of job security in a dwindling industry.
According to the job-loss tracker, the tech business laid off 34,000 individuals in January, the largest since January 2023, when roughly 90,000 were laid off.fyi. The latest Silicon Valley losses aren't as significant as those early last year, but tech remains one of the few weaker spots in a healthy labor market with unemployment around 4% for two years.
“There was a time when working in tech seemed like the most stable career you could have,” said Jellysmack head of staff Ayomi Samaraweera, who was laid go in December 2022. Her conclusion after 10 years in the industry: “tech does not seem safe and secure.”
Workers in a field unaccustomed to substantial, widespread cuts are realizing that. Many who lost their jobs in the past year have had mixed recovery experiences. Some started their own businesses, some returned to their former employers, and some abandoned the industry. Others remain unemployed and seek assistance from each other.
Last week, government data revealed that layoffs were dropping across the economy, except in professional and business services, which includes many computer employment. That sector saw 446,000 layoffs in January, the largest since January 2023, when nearly half a million were laid off.
Tech businesses profiting from low financing rates aggressively hired during a pandemic and then pulled back on projects. After a strong metaverse push, Facebook owner Meta cut workers and shifted resources to AI.
For longtime employees of big-name IT companies, which have long offered some of the best salary and perks, the change has produced some whiplash. In 2023, average hourly earnings climbed across the U.S. economy, but tech worker income fell. Last year, the industry's average wage dropped to $111,193 from $111,348 in 2022, according to tech career hub Dice.
Google laid off 12,000 workers (6% of its total) last year and over 1,000 more this year. Many of the layoffs were mid-career workers who had worked for over a decade, or half of Google's existence.
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