Tech layoffs are a regular occurrence at major tech companies, and often timed in advance of earnings reports. They’re also a response to market headwinds, like President Trump’s trade war with China or Russia’s continuing invasion of Ukraine. But for many of the big publicly-traded companies cutting jobs, they’re sitting atop mountains of cash and are wildly profitable, so the job shedding is more about pleasing investors than running out of money.
In the past year alone, we’ve seen a wave of tech layoffs that span a wide range of industries, from cryptocurrency (Coinbase) to e-commerce (Amazon) to ridesharing (Lyft) and more. Some of the more notable lays have happened at Microsoft, Meta, Google-parent Alphabet, Spotify, and work management software provider Asana. And that’s just the tip of the iceberg.
One of the main reasons for layoffs is that the COVID-19 pandemic halted business and demand for tech services dipped. The companies that went on a hiring spree after the pandemic are now finding themselves with overstaffed teams.
Investors expect results, and when revenue slows down or stock prices dip, they push for companies to cut costs by trimming the workforce through layoffs. This is why we’re seeing companies like Microsoft and Alphabet letting go of thousands of employees in the name of efficiency and profits. But even some small and mid-sized tech companies are facing layoffs as they shift focus to areas of higher growth. We’ve seen procurement technology provider Pavilion, AI chatbot maker Anyline, and even electric aircraft startup Lilium laying off workers.
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