According to a data tracker, technology-driven businesses in all sectors have been cutting jobs at the fastest rate since the COVID-19 pandemic shocked the global economy in 2020. In 2022, employers in the declining tech industry collectively cut more than 150,000 jobs.
According to the site’s data, that number is comparable to approximately 80,000 layoffs from March to December 2020 and 15,000 throughout 2021.
The estimates include both large employers like Facebook’s parent company Meta Platforms Inc., which had announced more than 11,000 layoffs in November 2022, and smaller employers like Amazon.com Inc., which had approximately 10,000 possible job cuts.
Despite strong revenue growth and rising share prices, many tech companies have been aggressively adding employees for years. During the pandemic, people and businesses relied on technology to get through lockdowns and other COVID-19-related disruptions, which sped up hiring.
As spending on tech products slows and the outlook for digital advertising dims, the same businesses are now cutting costs, laying off employees, implementing hiring freezes, and implementing hiring freezes. CEOs of many companies have expressed regret for expanding their payrolls too rapidly.
The overall labor market has shown signs of resilience at the same time as the downturn in tech hiring. The fact that a lot of tech workers who have been laid off are quickly finding new jobs is one reason why there appears to be a disconnect between the monthly government reports that show overall payroll growth in the United States and news of tech companies cutting workers.
A survey of new hires conducted by ZipRecruiter found that 79% of workers hired following a layoff or termination at a tech company found a new job within three months of starting their search.
Although these figures are only rough estimates and does not include all layoffs, they do show a pattern that is happening in many of the biggest tech companies.