In a report by Business Insider, it was mentioned that after massive layoffs by American tech companies at the end of 2022 and early 2023, they are now streamlining their workforce in a more organized and departmental manner. Experts have pointed out that this has become a new normal in the industry.
Taking Google as an example, the tech giant’s parent company, Alphabet, laid off about 12,000 employees in early 2023, accounting for approximately 6% of its total workforce. Following significant layoffs, the scale of job cuts at the company in 2024 has reduced.
On Wednesday, tech company Meta stated that they were restructuring some of their businesses resulting in layoffs. The company is actively seeking other positions for the affected employees but did not disclose the specific number of job cuts. Prior to this, Instagram, Reality Labs, and WhatsApp announced layoffs as well.
Art Zeile, the CEO of Dice, a recruitment market company for the tech industry, told Business Insider that routine layoffs have become the new normal. Some of the largest tech companies are reallocating resources to other growth areas after determining that certain departments are no longer profitable enough.
Linsey Fagan, a senior talent strategy advisor at Indeed, mentioned that most recurring layoffs occur in the tech field, possibly due to many companies in the industry experiencing rapid growth during the pandemic and still undergoing adjustments.
Many companies have downsized their workforce post the pandemic hiring frenzy, aiming to streamline their organizational structures and make improvements.
She stated that even minor workforce reductions can unsettle employees. In a recent survey by Indeed, 40% of respondents said they would be impacted if their company laid off employees. Furthermore, 70% of respondents indicated they would start seeking another employer and prepare in advance if there were layoffs.
Fagan noted that unlike in the past, tech workers currently applying for jobs on platforms like Indeed are more inclined towards part-time or healthcare roles in addition to HR positions rather than solely applying to tech companies.
She mentioned that some tech workers are seeking temporary or part-time jobs. Although the tech industry remains their preferred field of work, they no longer feel that sense of stability.
For tech jobs, it’s not all bad news.
Zeile stated that while tech companies may be laying off employees in certain areas, they are also expanding hiring in other fields. For example, Meta is no longer hiring VR engineers but is actively recruiting AI engineers, with numbers surpassing previous levels.
Fagan highlighted that after several years of decline, job postings in fields like software development have remained stable in recent months, albeit still 30% lower than in 2020. This indicates that companies are cautiously hiring fewer new employees, while the rate of employee layoffs is also slowing down.