Tech layoffs aren’t ‘going to get better quickly,’ analysts say

Nov 11, 2022, 2:15 PM
Tech workers...
There have been about 118,000 tech layoffs this year, according to several industry sources, including thousands of dismissals within the Puget Sound region. (AP File Photo/Ahn Young-joon)
(AP File Photo/Ahn Young-joon)

There have been about 118,000 tech layoffs this year, according to several industry sources, including thousands of dismissals within the Puget Sound region.

Stephen Courson left a promising career at Salesforce to create financial content. He told The New York Times, “this isn’t going to get better quickly.”

Mass tech layoff could spell disaster for Seattle

Even if you didn’t get laid off in the latest round, fear is striking many in the industry with people wondering, “am I next?”

Tech companies changing course 

All of this is a dramatic reversal of what we have come to feel about the tech industry. High salaries and endless perks seemed to be the state of the day.

Just recently, Meta opened new offices in Bellevue. A Meta spokesperson told GeekWire that there were no plans to change course.

Meta is one example of a company that has become a symbol of the region’s tech boom. With its valuation soaring past $1 trillion, Meta doubled its workforce to more than 87,000 employees in the last three years.

Jobs are still out there

The good news is jobs are still plentiful. The unemployment rate for tech occupations in the U.S. stood at 2.3% in August.

According to the Computing Technology Industry Association, that’s significantly lower than the national average unemployment rate of 3.7% that month.

Many industry watchers said the recent layoffs come from companies expanding too fast.

In other words, reality hit.

Talent recruitment led to overreach

The fight for talent has also led some companies, especially startups, to overreach.

“When times are flush, you get excesses, and excesses lead to overhiring and optimism,” said Josh Wolfe, an investor at Lux Capital.

“For the past 10 years, the abundance of cash led to an abundance of hiring,” Wolfe told The New York Times.

“At the end of the day, a company is a business, as much as they say that people are first,” Brooks Scott told VOX. Scott is an Executive Coach and CEO of Merging Paths.

Despite the recent downsizing, many analysts believe workers still have the edge.

Workers still on top

“These workers are at a huge advantage,” said Julia Pollak, chief economist with ZipRecruiter, in an interview with Wired. “There is still strong demand for tech talent in a wide range of industries, from government to retail to agriculture. Those industries for the past years have been left in the dust.”

The layoffs at companies like Amazon, Apple, and Alphabet are not seen as a major crisis.

“Everyone is looking ahead, seeing prices are up, and trying to cut costs,” said Rucha Vankudre, senior economist with the labor market analytics firm Lightcast.

Vankudre told Wired that companies are “trying to be more measured.”

Local News

Virginia Mason Health...
Shawn Garrett, KIRO 7 News

Patient data among files accessed in Virginia Mason Franciscan Health data breach

A hacking incident in October that impacted workers at Virginia Mason Franciscan Health and its patients was determined to be ransomware.
1 day ago
Starbucks union...
L.B. Gilbert

NLRB: Starbucks violated labor laws, must negotiate with Roastery union

A victory for workers at the Starbucks Reserve Roastery after the NLRB ruled Starbucks violated labor law by refusing to bargain with the union.
1 day ago
cold weather...
L.B. Gilbert

Pierce County Transit gives free rides to warming centers

Pierce County Transit is offering free rides to warming centers and shelters this week to help those who need access to transportation.
1 day ago
Micki Gamez

WA’s new vehicle registration law reinvents itself for modern world

Washington State law will now allow you to take a photo of your vehicle registration and store it on your cell phone.
1 day ago
Red Robin burger (Photo from KIRO 7)...
KIRO 7 News Staff

Red Robin to pay $400K after alleged violations of scheduling, wage theft laws at Northgate location

Seattle-based Red Robin has agreed to pay more than $400,000 to employees for alleged violations of secure scheduling and wage theft laws at its Northgate restaurant.
1 day ago
Photo from Seattle Police Blotter...
Darren Dedo

Man tears off wheel while fleeing Seattle police in stolen moving van

A man was arrested Wednesday morning after trying to run away from Seattle Police officers in a stolen U-Haul, tearing off the wheel in the process.
1 day ago

Sponsored Articles

Comcast Ready for Business Fund...
Ilona Lohrey | President and CEO, GSBA

GSBA is closing the disparity gap with Ready for Business Fund

GSBA, Comcast, and other partners are working to address disparities in access to financial resources with the Ready for Business fund.

Medicare open enrollment is here and SHIBA can help!

The SHIBA program – part of the Office of the Insurance Commissioner – is ready to help with your Medicare open enrollment decisions.
Lake Washington Windows...

Choosing Best Windows for Your Home

Lake Washington Windows and Doors is a local window dealer offering the exclusive Leak Armor installation.
Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Swedish Cyberknife Treatment...

The revolutionary treatment of Swedish CyberKnife provides better quality of life for majority of patients

There are a wide variety of treatments options available for men with prostate cancer. One of the most technologically advanced treatment options in the Pacific Northwest is Stereotactic Body Radiation Therapy using the CyberKnife platform at Swedish Medical Center.
Work at Zum Services...

Seattle Public Schools announces three-year contract with Zum

Seattle Public Schools just announced a three-year contract with a brand-new company to the Pacific Northwest to assist with their student transportation: Zum.
Tech layoffs aren’t ‘going to get better quickly,’ analysts say