Tech Industry Sees Massive Layoffs in 2022 and 2023 – Here’s What It Means for Tech Workers
By Since 2020, the tech industry has seen a significant number of layoffs, with the rate of layoffs accelerating in 2022.[0] Data from the tracker Layoffs.fyi shows that 1,024 tech companies laid off a total of 154,336 employees in 2022, and the industry is on track to surpass that number in 2023. As of early February 2023, 297 tech companies have laid off nearly 95,000 workers.
These layoffs represent a small fraction of the tech workforce, and many of the tech workers who lost their jobs are finding new opportunities relatively quickly in a still tight job market. In November 2022, a ZipRecruiter survey revealed that approximately 80% of tech workers who were laid off managed to find new jobs within three months of starting their job search.[1]
Before the pandemic, the tech industry was steadily growing as investments in cybersecurity, cloud computing, and artificial intelligence poured into companies.[2] Big tech companies also experienced an explosive growth during the pandemic, hiring at a fast clip.[3]
However, since July 2022, more than 500 tech companies have announced layoffs.[4] Amazon, Google, Meta, and Microsoft have each cut more than 10,000 jobs, representing between 5 and 13% of their workforce, per tracking site Layoffs.fyi.[5] Alphabet, Google’s parent company, let go of 12,000 people—the biggest layoffs the company has ever seen in its history.[6] Meta cut an even bigger share of its staff, and IBM is cutting thousands of jobs.[2]
These layoffs have led to a culture shift at many of America’s tech companies, as companies attempt to course correct and become more like scrappy startups again.[6] While some companies, such as Apple, might have so far avoided layoffs, it’s fair to say that tech companies and workers have been shaken up.[7]
It’s important to note that the need for tech talent has not gone away, and many industries are still in desperate need of tech workers.[1] With the right job search strategies, laid-off tech workers can still find new roles relatively quickly in the current job market.
0. “Big Tech Layoffs Leave HR Professionals with Key Questions” SHRM, 6 Feb. 2023, https://www.shrm.org/resourcesandtools/hr-topics/organizational-and-employee-development/pages/big-tech-layoffs-leave-hr-professionals-with-key-questions.aspx
1. “Despite big layoffs, it’s still a great time to work in tech, experts say: ‘I’ve seen bad job markets…this is not it’” CNBC, 3 Feb. 2023, https://www.cnbc.com/2023/02/03/despite-big-tech-layoffs-its-still-a-good-time-to-work-in-tech.html
2. “Tech layoffs are growing with Google, Amazon, Dell, Salesforce” USA TODAY, 7 Feb. 2023, https://www.usatoday.com/story/money/economy/2023/02/07/tech-layoffs-2023-google-amazon/11135692002
3. “Philly employers are desperately seeking tech workers even as Silicon Valley giants are laying off thousands” The Philadelphia Inquirer, 3 Feb. 2023, https://www.inquirer.com/business/technology/technology-layoffs-hiring-software-developers-philadelphia-silicon-valley-20230203.html
4. “Twitter leads the tech industry in layoffs” Axios, 4 Feb. 2023, https://www.axios.com/2023/02/04/tech-layoffs-twitter-apple-elon-musk
5. “Labor experts on what's going on in the economy and job market in 2023” Business Insider, 3 Feb. 2023, https://www.businessinsider.com/us-economy-layoff-job-market-economists-recession-inflation-worried-2023-2
6. “Ranked: America's 20 Biggest Tech Layoffs Since 2020” Visual Capitalist, 7 Feb. 2023, https://www.visualcapitalist.com/americas-20-biggest-tech-layoffs-since-2020/
7. “Tens of thousands have been laid off in tech: what will happen next?” UNSW Newsroom, 2 Feb. 2023, https://newsroom.unsw.edu.au/news/business-law/tens-thousands-have-been-laid-tech-what-will-happen-next
