So far, some 32,000 tech workers have lost their jobs in 2024 according to
Snap became the latest example, announcing on Monday that it's reducing its workforce by
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This year, "tech companies are still trying to correct for their over-hiring during the pandemic surge, given that the high interest-rate environment and tech downturn have both lasted longer than initially expected," Layoffs.fyi founder
There have been two main waves of job cuts in recent years, according to Lee. The "early COVID" spike, from the first to second quarters of 2020, and the "interest rate hike" effect, which has been going on since the second quarter of 2022. "This year's layoffs are typically smaller and more targeted than the layoffs a year ago," Lee said.
Although economic factors are the main reason for tech layoffs, Lee noted that many companies are citing the race for artificial intelligence as a factor, as they are shifting resources to focus on AI talent. According to an
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So even as the industry sheds some jobs, it's also hiring aggressively in others. There were 33,727 active job postings in January, according to CompTIA, the largest month-over-month increase in 12 months.
"Most of the layoffs have happened, and companies are going to start to rebound," said Bert Bean, chief executive officer of staffing company Insight Global. "But it's still very uncertain." He expects the market to remain that way for about the next two quarters, "until the Fed really comes out and starts to cut interest rates."