Tech layoffs shook Silicon Valley last year and this year, with major companies including Meta, Facebook, Google, Amazon, Twitter and Snap cutting thousands of employees. Many of these jobs were in the high-level, senior roles that are a hallmark of a top tech company.
Several factors contributed to the spate of layoffs, from a business correction after a COVID-19 pandemic hiring surge to a shift in investment funding and reduced profit expectations. Companies also face challenges when they try to meet changing customer demands and adapt to changing business environments, which may call for workforce reductions and restructuring.
Amid these factors, tech companies have been slashing budgets and implementing cost-saving measures to remain competitive and profitable. This can include reducing staff, especially for roles that are redundant or could be replaced by automation and artificial intelligence (AI) tools.
As a result, mid-career professionals in their late 30s and early 40s have been the hardest hit by these changes. They’re at a career crossroads, too senior for entry-level positions but not yet in leadership roles where they can advance their careers.
The number of job cuts in the industry can impact morale and productivity and lead to a broader talent shortage, but there are steps that businesses can take to improve employee retention and foster a resilient and adaptable tech team. For example, investing in employee growth and providing a clear view of the company’s long-term goals can provide a sense of security and purpose for teams that might be at risk.