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Why are tech companies doing layoffs?
Tech layoffs started to surge in 2022 and continued in 2023 and 2024. Companies have given various reasons for conducting layoffs.
Some companies — especially those in the e-commerce sector — nearly doubled their employee headcount to meet consumer demand during the COVID-19 pandemic’s stay-at-home mandates, and later found that they were overstaffed as daily life returned to normal.
Large tech employers such as Salesforce and Google parent Alphabet noted that their post-pandemic layoffs followed several years of rapid hiring fueled by fast growth — between 2019 and 2022, some companies nearly doubled their employee headcount. Some large tech companies also cited slowing sales and fears of a recession as reasons for downsizing.
Venture-backed startups, meanwhile, also cut jobs as a way to cut costs and preserve their cash reserves, as venture funding fell significantly after the peak in 2021. Some startups that ran out of cash and couldn’t raise new funding found themselves filing for bankruptcy or shutting down.
What jobs are being cut in tech layoffs?
Tech layoffs have hit across departments at many companies.
Many layoffs from the large tech giants were software engineers. Startups tend to be more likely to retain engineers in favor of doing layoffs in their talent and recruiting, marketing and other departments.
Google cut roles in its sales, recruiting, product and engineering teams. Amazon layoffs included jobs in its AWS cloud unit, at its social video platform Twitch, and in its advertising department. Meta CEO Mark Zuckerberg said the company’s recruiting department would be the first to see job cuts.
Are more tech layoffs coming?
Yes, more layoffs are likely coming. While there are signs that the volume of layoffs is tapering, experts we talked to expect job cuts in the tech sector to continue for the foreseeable future as large tech companies and startups continue to battle economic headwinds.
Seed and early-stage startups in particular may continue to conduct layoffs in an attempt to extend their cash runways in a difficult venture funding environment.
Tech layoffs noticeably increased at the start of 2022, ramped up in 2023, waned somewhat in 2024 and have continued in 2025.
Is the advent of A.I. and the economy being weird doing this?
Is it still worth going into the web development/coding/programming industry at this point in time?
Thanks.
After speaking with friends at Microsoft, Meta, and Amazon across London, Bangalore, and Seattle, here are the hard truths about the current job market:
Job security in Big Tech is a thing of the past. The days when working for top tech companies meant long-term stability are over.
AI is reshaping the workforce. Automation and AI-driven tools are boosting efficiency across organizations, making several roles redundant.
Mid-career professionals face the biggest challenge. People in their late 30s and early 40s are at a crossroads, too senior for entry-level jobs but not yet in executive roles, leaving them particularly vulnerable.
The layoffs have just begun. Companies are not only letting people go but also permanently eliminating roles, with no plans to rehire.
Amazon’s workforce reductions are more aggressive. While the company used to trim around around 7-8% of employees annually due to performance reviews, that number has now surged into double digits.
Companies are prioritizing cost-cutting over compassion. Layoffs are being carried out with ruthless efficiency, with little regard for employee well-being.
India's job market is relatively more stable. While global tech hubs like London, the Bay Area, and Dubai are seeing severe slowdowns, India’s employment landscape remains slightly more resilient.
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