As the Tech Industry Grows, Why Are So Many People Getting Struck by Layoffs?

The tech industry is still at its height.

With new products coming and endless possibilities for a tech-heavy future, why are so many people getting hit with layoffs?

In the past year alone, more than 70K people have been laid off by Big Tech companies. That does not account for the contractors losing business as budgets tighten.

One major contributor is reduced advertising spend and revenue.

Many tech companies, in the years leading up to the pandemic, relied heavily on advertising for income. But as advertising revenue decreased last year, expenditure on staffing received some of the first cuts – partially due to fears of a looming global recession.

Things won’t change much for consumers of tech, but the hiring landscape will change for the near future. Jobs will require more education and experience, and will likely pay less than they would have a year ago.

What happens on the back end of the economy – whether the world enters a global recession or not – likely determines the future of the industry as a career.

Former tech employee Bailey Maya took to TikTok to share her experience with the layoffs, telling viewers that she found out about her company’s cuts through an article she read online. It’s not an uncommon experience for tech workers in recent weeks – even though it’s extraordinarily sterile and inhumane.


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