Over the past few months, tech giant after tech giant has announced hundreds, even thousands, of layoffs. Which big companies have cut the deepest? And what does that mean for tech professionals, even those who work for smaller organizations?
Layoffs.fyi, which crowdsources layoff information, has the latest breakdown of the biggest layoffs in tech. If you’ve been paying attention to the headlines, you’re well aware that Meta, Google, and other companies have undertaken huge cutbacks, but some names on this list might surprise you.
Even as you scan this list, keep in mind that the tech unemployment rate fell to 1.5 percent in January, according to the latest CompTIA analysis of data from the U.S. Bureau of Labor Statistics (BLS). Many industries experienced strong tech job demand last month, including professional, scientific and technical services (40,712 tech job postings), finance and insurance (30,576 tech job postings) and manufacturing (24,269 tech job postings).
“Undoubtedly some companies over-hired and are now scaling back. The low tech unemployment rate and steady hiring activity by employers confirms the long-term demand for tech talent across many sectors of the economy,” Tim Herbert, chief research officer for CompTIA, wrote in a statement accompanying that data.
However, a tidal wave of layoffs has the potential to change the balance of power between tech professionals and the largest tech companies. Throughout the “Great Resignation,” tech pros noted the increasing demand for tech skills and used that to negotiate for better pay, perks, and benefits; if they didn’t get what they wanted, they left their current employers for another organization willing to meet their demands.
That trend translated into aggressive hiring and notable pay increases at some of the nation’s largest and most well-monetized companies. But recent fears of a recession have led consumers and clients to cut back on their tech spending, impacting these tech companies’ bottom lines. Instead of hiring as many tech specialists as they can find, many tech executives have begun trimming budgets and headcount—reducing tech professionals’ leverage in negotiations.
What happens at the biggest tech companies can often trickle down to the smaller ones. While tech professionals are still very much in demand, they might not have quite the same leverage as before, impacting their job hunt and interviewing strategies. If you’re interested in landing a new position (or earning better pay and benefits at your current one), make sure your current skills are up-to-date and you can successfully demonstrate your ability to help an organization achieve its tech goals.