Between inflation and low market demand, 2023 was a rough year for Silicon Valley. But even though there was relief in the New Year, additional thousands of tech workers were laid off. This article examines the continual downsizing despite a rebound industry-wide.
2023 Was the WORST Year for Tech Since Dot-Com Crash…
By the end of Q1 2023, the technology sector had already surpassed the prior year’s layoff count…
AND THE TALLY OF THOSE LAID OFF JUST KEPT CLIMBING AS 2023 PROGRESSED.
Nonetheless, there were a myriad of reasonable factors that contributed to the mass downsizing. Several are discussed in the following Bloomberg Technology YouTube video.
Tech companies had overhired during the pandemic as consumers relied more on their services. Simultaneously, the industry invested a lot of money into modern approaches like AI.
However, the interest hikes alongside low spending from consumers came as a reckoning for Silicon Valley. Unfortunately, it affected its workforce most severely…
Employees were laid off in the largest quantity since the Dot-Com bubble burst in 2001.
But as we entered 2024, the interest went down and demand is creeping up. And still, big tech continues to kick employees to the curb in large numbers…
Workers are STILL Being Laid Off to Appease… Wall Street?
As we mentioned, 2024 brought new hope to the technology sector. Major players like Meta, Amazon, and Google are profitable as of their recent earnings reports…
Nonetheless, another significant wave of layoffs occurred at the start of the New Year! It begs the question…
Why were so many people laid off when these tech companies were making money?
A professor from the University of Washington’s Foster School of Business, Jeff Shulman, shared his insights with NPR.
“THEY’RE GETTING AWAY WITH IT BECAUSE EVERYBODY IS DOING IT. AND THEY’RE GETTING AWAY WITH IT BECAUSE NOW IT’S THE NEW NORMAL. WORKERS ARE MORE COMFORTABLE WITH IT, STOCK INVESTORS ARE APPRECIATING IT, AND SO I THINK WE’LL SEE IT CONTINUE FOR SOME TIME.”
Nonetheless, we cannot be completely certain this is Silicon Valley’s reason for still cutting down its workforce.
In that case, what else could be behind this situation?
Silicon Valley Preparing for a “Phantom” Storm
Even the most powerful tech titans took a beating in 2023. No one could fault them for not wanting to go through a similar ordeal again.
The logic behind these employees being laid off from their technology jobs might be simpler than we realize…
It goes back to prior overhiring and better organizing their resources. That way, the companies will be leaner and meaner if and when the market turns against tech again.
Regardless of why this happened, it’s working. For now…
Be Great,
GCTV Staff
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