Tracking tech layoffs: Why companies like Amazon and Meta cut jobs in 2022
was remarkably strong, the tech industry was an exception.
After a massive hiring spree in the first two years of the pandemic, industry giants like Amazon and Meta reversed course in 2022. There were at least 154,000 layoffs from more than 1,000 tech companies last year, according to Layoffs.fyi, a website that has been tracking tech layoffs since March 2020.
The website’s tallies – which are likely an undercount – have continued at a fast clip in 2023, with more than 25,000 layoffs recorded so far this year.
“The number of actual layoffs is going to be much higher than what’s on the site just because most layoffs don’t get reported,” Layoffs.fyi creator Robert Lee told USA TODAY. “Unfortunately, I don’t see the layoffs going away anytime soon.”
Which tech companies are doing layoffs?
Layoffs.fyi data shows the U.S. tech companies that trimmed the most jobs last year include:
- Meta: 11,000
- Amazon: 10,000
- Cisco: 4,100
- Carvana: 4,000
- Twitter: 3,700
Are tech companies freezing hiring?
Job openings for tech jobs dropped nearly 30% from January to December of last year, while hires in the industry were down 23%, according to December data from talent acquisition company iCIMS.
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Why are there so many layoffs right now?
Lockdowns had a major effect on consumer spending. Experiences like travel or restaurants were largely off the table, so people began to shift their discretionary spending to products from tech companies like Amazon and Peloton.
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Lee noted that layoffs have accelerated, with January’s tally already outpacing all but one month in 2022.
Lee has hope that job cuts in the industry will start subsiding by the end of the year if interest rate hikes slow down.
Keum said tech layoffs will likely spread to small- and medium-sized tech companies this year as venture capitalists tighten their spending.
“You will see sort of a gradual rippling out from the big tech to the broader tech industry. The layoffs will become a little bit more widespread,” he said.
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Will layoffs spread to other industries in 2023?
While certain industries like tech and media have seen an influx of layoffs, the broader labor market has remained sturdy.
The U.S. economy added 4.5 million jobs last year, and the unemployment rate in December fell from 3.7% to 3.5% to match a 50-year low.
“Across the economy, this is not a problem that we’re seeing,” Vankudre said. “This seems really pretty niche (for the tech industry) at the moment.”
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