Layoffs declined in 2024 compared to the previous year, but are expected to continue into 2025, although likely not at the level seen in 2023. Startups that need to preserve cash to extend their runways are more likely to conduct layoffs.

Tech layoffs will likely slow when venture capital funding increases and the startup economy stabilizes, as well as when market conditions improve and more startups gain liquidity via IPOs.

Startups that raised capital during the venture funding heyday at inflated valuations in 2021 are more likely to need to conduct layoffs if they’re not able to sustain their previous valuations or growth projections.

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.

Tech layoffs started surging in the 2022 market correction, with an estimated 93,000 U.S. tech workers laid off that year. That figure more than doubled in 2023, with around 200,000 U.S. tech employees laid off, according to our Tech Layoffs Tracker. Layoffs abated again in 2024, with around 95,000 reported tech layoffs.

Keep in mind, many companies don’t report detailed layoffs figures, and some companies continue hiring after cuts for positions deemed more beneficial to the business.