Evan Richardson grew up in Silicon Valley, surrounded by big tech companies that transformed how people live, socialize and work. As a curious kid, Richardson took apart electronics and put them back together. A career in technology seemed like a natural and safe path after his service in the military.
“Tech was always an industry you go into, you’re going to make a lot of money and you’re never going to get fired,” he said. But that dream came crashing down for Richardson when he found out that his role as a development and operations engineer at payment company Square was being eliminated due to a reorganization. The parent company, Block, planned to cut 931 jobs, or 8% of its workforce, with 240 employees in California affected, including engineers, designers, and writers.
Block is just one of many major tech companies in the San Francisco Bay Area slashing their payrolls this year. Meta, Google, Autodesk, Workday, and others have also announced job cuts. Intel, in particular, is planning to cut over 20% of its workforce, leading to a loss of $821 million in the first quarter.
In a region known for its boom and bust cycles, these layoffs in the tech industry are dealing a severe blow to California’s economy, which is ranked as the world’s fourth-largest. The state benefits from taxing capital gains on stock options provided by tech companies, making these job cuts not just a personal loss for the employees, but also a financial hit for the state.
Despite the grim numbers, the job cuts in the tech industry this year are not as bad as they were in 2023 when layoffs surged. U.S. tech companies announced 37,097 job cuts from January to March, down 13% from the same period last year. In California, companies announced 17,874 cuts in technology in the first quarter of this year, according to Challenger, Gray & Christmas.
Overhiring during the pandemic and shifts in the economy have fueled much of these layoffs, along with companies closely measuring productivity and performance, and investing more in artificial intelligence. Economic uncertainty driven by regulatory changes and shifts in immigration policies are also forcing businesses to cut costs, leading to a slowdown in hiring across the board.
For tech workers like Richardson and others who have lost their jobs, the industry no longer feels as stable as it once did. The rapid evolution of technology and shifting company priorities make it hard to predict job security. Some are contemplating leaving the tech industry altogether, while others find it difficult to let go of the high salaries, benefits, and perks that come with working in tech.
Despite the challenges, some like Adam Espinoza and Chase Foti-Landis, who were laid off from Meta and Zendesk respectively, are determined to stay in the tech industry. Espinoza, who grew up in the era of dial-up internet and AOL, has a passion for problem-solving as an engineer. Foti-Landis, on the other hand, is still processing his unexpected job loss and considering a career change, possibly even working outdoors as a park ranger.
The culture shift within tech companies, where diversity efforts are being sidelined and employees are feeling expendable, is driving some workers to question their future in the industry. However, for now, many are holding on to their love for technology and the opportunities it provides, despite the uncertain landscape of the tech job market.
