Silicon Valley Tech Industry Reeling from Sweeping Layoffs
The tech industry in Silicon Valley, California, has been hit hard by the pandemic and its effects are being felt across the globe. In the last few months, around 340 companies have laid off more than 1.10 lakh employees worldwide. In January alone, close to 1 lakh of them lost their jobs, with Amazon, Microsoft, Google, Salesforce and other tech giants leading the way.
More recently, Microsoft reported it would cut 62 jobs in Mountain View, California, the second time the tech titan filed layoff notices with the state’s labor agency.
The Silicon Valley Index, an annual report that studies the region’s economy, found that the region added 88,000 jobs between mid-2021 and mid-2022, a faster rate than the rest of the country. However, it also revealed staggering wealth gaps, with the top 0.001% of households holding an estimated 4% of the collective wealth, and eight Silicon Valley residents in those counties holding more wealth than the bottom 50% combined.
Experts warn that more layoffs are likely to come in the coming months, and the possibility of a recession still looms over the horizon. However, it is important to note that the tech industry has still grown at nearly twice the rate of overall employment in the region, with tech giants like Apple, Google parent Alphabet and Facebook parent Meta, employing 19% of Silicon Valley's workers.
It remains to be seen how the current situation will play out, but one thing is certain: the global tech industry is facing an uncertain future.
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