Understanding Tech Industry Job Layoffs; Here's Clear Picture

Last year, many tech companies had to let go of employees to save money due to inflation and the aftermath of pandemic hiring. But this year, even with ample cash reserves, the trend continues, leaving many puzzled. The tech job market isn't as secure as it used to be. Since the beginning of this year, over 50,000 employees from 209 tech companies have been laid off. Big names like Alphabet, Amazon, and Microsoft are among those reducing their workforce.

The scale of these job cuts is only second to the dot-com bubble burst in 2001. Although there's been a slight decrease in layoffs compared to last year, the situation remains dire for tech workers. Job seekers are facing tough competition, with fewer opportunities for stable roles and salary growth. Many are either leaving the tech industry altogether or accepting less favorable conditions.

Tech salaries, once known for their rapid increase, have now plateaued. While they still pay well compared to other industries, the days of significant salary hikes seem to be over. Behind these layoffs lies a surprising reason: stock prices. Companies are prioritizing their stock performance over job stability, leading to a new norm of frequent layoffs.

As this trend continues, it's essential for tech workers to adapt to the changing landscape and be prepared for a more competitive job market with fewer guarantees of stability and salary growth.

-by Vishnupriya