While last year’s labor market was remarkably strong, the tech industry was an exception.
After a massive hiring spree in the first two years of the pandemic, industry giants like Amazon and Meta reversed course in 2022. There were at least 154,000 layoffs from more than 1,000 tech companies last year, according to Layoffs.fyi, a website that has been tracking tech layoffs since March 2020.
The website’s tallies – which are likely an undercount – have continued at a fast clip in 2023, with more than 26,000 layoffs recorded so far this year.
“The number of actual layoffs is going to be much higher than what’s on the site just because most layoffs don’t get reported,” Layoffs.fyi creator Roger Lee told USA TODAY. “Unfortunately, I don’t see the layoffs going away anytime soon.”
Which tech companies are doing layoffs?
Layoffs.fyi data shows the U.S. tech companies that trimmed the most jobs last year include:
- Meta: 11,000.
- Amazon: 10,000.
- Cisco: 4,100.
- Carvana: 4,000.
- Twitter: 3,700.
Are tech companies freezing hiring?
Job openings for tech jobs dropped nearly 30% from January to December of last year, while hires in the industry were down 23%, according to December data from talent acquisition company iCIMS.
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Why are there so many layoffs right now?
Lockdowns had a major effect on consumer spending. Experiences like travel or restaurants were largely off the table, so people began to shift their discretionary spending to products from tech companies like Amazon and Peloton.
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