Twenty of the Largest Technology-Related Job Losses in the United States Since the Year 2020
List of the 20 most extensive tech layoffs in America this decade
Nobody could have foreseen what had happened in the previous few years. Everything from a worldwide epidemic and widespread adoption of remote work to a subsequent hiring frenzy, increased prices, and widespread layoffs.
Google’s parent company, Alphabet, recently saw the most extensive layoffs in its history, laying off 12,000 employees. This is the equivalent of a small village being laid off. In addition to Meta’s 11,000 job cuts, Amazon and Microsoft have each let go of 10,000 employees in recent months.
This infographic highlights the 20 most extensive tech layoffs of the 2020s based on data from the tracker Layoffs.fyi, providing some perspective on the current round of layoffs.
In 2020, these twenty events will have the most significant impact on employment.
The rate of layoffs in the IT sector has been alarming since 2020 and is expected to accelerate in 2022.
In 2020, layoffs were expected since the COVID-19 epidemic halted global economic activity and required drastic workforce size cuts everywhere. From then on, things were stable until the economic uncertainties of last year led to widespread layoffs in the technology industry, with many of the most significant cuts occurring in the most recent three months.
Reasons for Staff Reductions
The upcoming recession has been cited as the primary motivator for personnel reductions. The employment surge that followed the outbreak is too much for companies, so they are claiming they have to cut back.
Furthermore, the competition was severe during this hiring frenzy, resulting in more excellent wages for workers. This now translates into an increasing need to trim the fat due to the current economic difficulties.
Of course, there is more to the story than the classic over-hiring plus economic storyline regarding the causes of these recent layoffs. It looks like a cultural revolution is happening in the tech industry in the United States. Tech companies would like you to know that they’re once again operating like scrappy startups, as Rani Molla and Shirin Ghaffary of Recode have so astutely pointed out.
The widely reported layoffs at Twitter in late 2022 were not caused by the economy alone. Elon Musk’s mission to accomplish more with a smaller staff resonated with other Silicon Valley entrepreneurs and executives, opening the door for others in the tech sector to reduce labor expenditures. For one, Facebook founder Mark Zuckerberg has declared 2023 the “year of efficiency” for Meta.
Meanwhile, 12,000 jobs have been eliminated at Google as it readies itself to dominate the artificial intelligence (AI) field. A quote from Google’s CEO:
“There have been significant growth spurts over the previous two years. We staffed up for a very different economic climate than the one we’re in now to accommodate and even fuel that expansion. We see a massive opportunity across all of our products for AI, and we’re ready to tackle it head-on and ethically. “SUNDAR PICHAI”
An Oversight on the American Labor Market
Job opportunities outside of technology are on the rise as well. The latest report from the BLS shows that there are currently 11 million job opportunities in the United States, a rise of over 7% from the previous month. That’s equivalent to 1.9 job openings for every unemployed person in the United States.
In addition, in January alone, businesses added 517,000 new positions. Although the BLS noted a decline in opportunities in the information sector, vacancies have increased fast in other sectors, particularly those related to providing food and beverages, retail commerce, and building and related work.