The great reset after a pandemic boom



It’s not the dotcom bust of 2000, or the Great Recession of 2008. Instead, the tech layoffs now underway have their own distinct profile. 

“I call this the ‘great reset,’ compared to the ‘great resignation’ we saw the last two years,” said Ahmed Banafa, a tech expert and engineering professor at San Jose State University.

The ongoing mass layoffs have affected more than 22,000 employees of tech companies headquartered in the San Francisco Bay area, according to the Layoff FYI dashboard, a tracker of tech layoffs since the pandemic. The majority of those layoffs were not in San Francisco or elsewhere in the Bay Area. Nevertheless, tech workers and local economists are concerned and already there is talk of a smaller real estate footprint at Meta.

And, the overall real numbers could be higher; some companies announcing layoffs didn’t disclose numbers. So far this year, tech-related job cuts nationwide have reached 121,677, and Amazon began laying off some 10,000 people this week.

Despite the attrition, employment at many of the companies remains above or near pre-pandemic levels. Meta’s workforce, for example, is still 64 percent higher than it was in 2019.

 

A sharp increase in tech job cuts was seen in the SF Bay Area since November.

The number was mostly driven up by big tech companies, which makes up for a small fraction of the total staff those companies have.

Meta, laid off 11,000 people last week – about 13% of its staff

Twitter, laid off 3,700 – about 50% of its staff

The 10,000 job cuts at Amazon, was 3% of its corporate employees and less than 1% of its global work force

A sharp increase in tech job cuts was seen in the SF Bay Area since November.

The number was mostly driven up by big tech companies, which is, however, only a small fraction of the total staff those companies have.

Meta, laid off 11,000 people last week – about 13% of its staff

Twitter, laid off 3,700 – about 50% of its staff

The 10,000 job cuts at Amazon, was 3% of its corporate employees and less than 1% of its global work force

Data Source: Layoffs.fyi. Chart by Chuqin Jiang.

Still, the cuts have been large in the context of the last year. The number of jobs cut announced by companies headquartered in the Bay Area since October surpassed the number during the prior nine months, making up 61 percent of the cuts so far this year. And the recent wave is mostly led by big tech companies, including Meta (11,000), Twitter (3,700), Salesforce (1,000), Stripe (1,000) and Lyft (700).

Marcy Willis

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