Janice R. Andrews
The tech industry, once seen as a bastion of job security and innovation, is now grappling with the fallout of mass layoffs. For decades, workers like Daelynn Moyer, 55, thrived in the sector, climbing the ranks from a computer maintenance technician to a manager leading engineering teams. However, after being laid off from Indeed last year, Moyer has applied to over 140 jobs without success. Now, she and her wife are considering leaving the tech industry altogether, potentially selling their home near Portland, Oregon, to start a farm.
“It would be a meager existence, but it would be fulfilling,” Moyer said. “I would no longer feel like a no longer useful commodity.”
Moyer’s story is emblematic of a broader shift in the tech industry. Once celebrated for its generous pay, perks, and cutting-edge work, the sector is now marked by routine layoffs and eroding trust between employees and employers. The unintended consequences of these mass job cuts are reshaping the industry, leaving workers disillusioned and companies struggling to maintain morale and innovation.
The Rise and Fall of Tech Job Security
For years, Silicon Valley was synonymous with stability and growth. Companies like Meta, Google, and Amazon seemed untouchable, offering employees free meals, wellness services, and the promise of meaningful work. However, the industry’s rapid expansion during the pandemic led to overhiring, and as economic conditions tightened, companies began slashing jobs.
Since 2022, the tech sector has cut hundreds of thousands of jobs. Meta alone reduced its workforce by 5% in a recent round of layoffs, targeting so-called “low-performers.” Yet, many affected employees expressed shock, citing high performance ratings and positive reviews. One product manager, who spoke anonymously, said he was told he was performing “at or above” expectations just months before being laid off.
Meta CEO Mark Zuckerberg defended the cuts during a companywide town hall, arguing that the layoffs would improve the company by retaining only the best employees. “I think this makes the company better. I’m not going to be apologetic for it,” he said.
The Psychological and Financial Toll
The ripple effects of these layoffs extend far beyond the immediate loss of jobs. Research shows that mass layoffs can lead to lasting psychological and financial consequences for both employees and employers. Workers who survive the cuts often face increased stress, lower engagement, and a heightened fear of future layoffs.
Jean, who recently landed a dream job at a major tech company, found herself questioning her place in the industry after experiencing two layoffs in less than a year. “I was more like, ‘Do I really belong here? What if I get laid off again?’” she said.
For those who lose their jobs, the financial impact can be devastating. Moyer, for instance, is now considering a drastic lifestyle change to cope with her inability to find work in tech. Others, like Sean Johnson, a remote engineer based in North Carolina, are investing in new skills like machine learning and AI to stay competitive in a shrinking job market.
Erosion of Trust and Innovation
The layoffs have also severed trust between employees and company leaders. Patrick McAdams, CEO of tech recruiting firm Andiamo, noted that the erosion of job security has left many workers wary of large companies, especially those that announced layoffs while reporting growing profits or rising stock prices.
This loss of trust can have long-term consequences for innovation. Sandra Sucher, a professor at Harvard Business School, explained that layoffs create an environment where employees are less willing to take risks. “When you give people a sense that somehow they’re not safe anymore, it’s very hard to take the risk to try to persuade people to do stuff that you think they’re going to disagree with,” she said.
The Broader Impact on the Industry
The tech industry’s layoffs are not occurring in isolation. White-collar sectors, including professional business services and information technology, have shed tens of thousands of jobs since early 2023. Higher interest rates and economic uncertainty have further discouraged hiring, creating a challenging environment for job seekers.
Even companies that have avoided mass layoffs are introducing stricter policies, such as limiting remote work or issuing more negative performance reviews, which some employees see as covert strategies to reduce headcount. Eliot Lee, a project manager in Utah, has adjusted his job search strategy in response to the competitive market. He now spends more time researching companies’ financial stability and reading employee reviews before applying.
“I don’t trust employers anymore,” Lee said. “I was under the mindset previously, ‘Oh, this is my family. This is my professional home.’ I no longer have those thoughts.”
A New Era for Tech Workers
The tech industry’s current challenges mark a significant departure from its past. Workers who once viewed their jobs as lifelong careers are now reevaluating their relationship with the sector. Many are seeking new skills, exploring alternative industries, or prioritizing work-life balance over corporate loyalty.
For companies, the path forward is less clear. While layoffs may provide short-term financial relief, they risk damaging long-term innovation and employee morale. As the industry continues to evolve, leaders must find ways to rebuild trust and create a more sustainable approach to workforce management.
In the meantime, workers like Daelynn Moyer are left to navigate an uncertain future. “I would no longer feel like a no longer useful commodity,” she said, reflecting on her potential transition to farming. Her words underscore the human cost of the tech industry’s layoffs—a cost that extends far beyond balance sheets and stock prices.
As the sector grapples with these unintended consequences, one thing is clear: the era of unchecked growth and unwavering job security in tech is over. What comes next will depend on how companies and workers adapt to this new reality.
