Tech Layoffs Are the New Normal—And That’s a Problem
It used to be shocking when Google or Amazon laid off a few hundred employees. Now, it barely makes the news unless the number hits five figures. In the post-pandemic tech landscape, layoffs have become not just common—but expected. They’re normalized, spreadsheeted, and often spun as “strategic realignment.”
And that’s a problem.
Not because layoffs themselves are new. But because they’ve become a business model, not a last resort. And as Silicon Valley continues to treat job cuts like cost-cutting code, it’s worth asking: what are we actually optimizing for?
From Bubble to Bloodbath
The pandemic tech boom brought unprecedented growth—remote work, eCommerce, cloud computing, and digital payments all surged. Tech companies over-hired, over-promised, and over-valued.
Then came the cooldown.
Starting in late 2022 and continuing well into 2025, layoffs swept the industry:
- Meta cut over 21,000 roles across several waves
- Amazon slashed 27,000+ jobs
- Google, Salesforce, and Microsoft followed suit
- Even OpenAI, once a poster child of growth, is rumored to be “flattening out” hiring in mid-2025
The reasons are familiar: rising interest rates, investor pressure for profitability, and a correction from over-hiring. But beneath the surface is something more troubling: layoffs have become performative.
Layoffs as a Signal, Not a Solution
Let’s be clear—sometimes layoffs are necessary. Business shifts, acquisitions, or failed products do require restructuring. But in today’s climate, layoffs are often less about survival and more about sending a signal to Wall Street.
Cutting 10% of your workforce? Investors applaud. Stock ticks up. You’re suddenly “leaner,” “disciplined,” “focused.”
Never mind that those same employees were hired six months ago in a frenzied expansion. Never mind the human cost. Never mind the long-term cultural damage. The short-term optics matter more.
And tech, once proud of its people-first, culture-driven ethos, is losing that edge fast.
The Emotional Detachment is Alarming
What’s striking now isn’t just the volume of layoffs—but the coldness of them.
- Entire teams learning they were cut via Slack.
- Layoff lists leaked by internal dashboards.
- Exit calls hosted by bots.
- Former employees locked out before they even received an explanation.
For an industry obsessed with user experience, tech sure has a terrible employee experience when things go south.
The result? A growing undercurrent of mistrust—even among top talent. Engineers, designers, and PMs are increasingly skeptical of company loyalty. Why invest emotionally in a role that might disappear in Q3?
Startups Aren’t Immune Either
It’s not just the giants. Startups, too, are cutting aggressively—often under pressure from VCs to show path-to-profit. Seed and Series A companies are laying off staff just months after raising funding.
And the culture shift is visible. Early-stage teams once known for “family vibes” now treat team members as burn-and-replace assets. Founders preach grit and passion—until runway gets tight. Then it’s spreadsheets and severance emails.
A Generation of Talent Is Watching
Here’s where it gets truly dangerous: the next generation of tech workers is taking notes.
For years, tech was seen as a place of upward mobility, creativity, and impact. Young people learned to code not just for salary—but to be part of something big. Now? Many are rethinking.
- CS grads are turning toward AI research, government roles, or remote freelancing.
- Mid-career engineers are jumping to climate tech, biotech, or completely leaving the industry.
- Product people are shifting to build their own micro-startups or consulting gigs.
Why? Because they’ve seen the instability. They’ve seen coworkers laid off despite “exceeds expectations” reviews. They’ve watched leadership overpromise and underprotect.
What Needs to Change (Olivia’s Take)
Layoffs may never disappear from business. But how we do them—and how often we resort to them—needs a serious reset.
Here’s what I believe the industry must rethink:
- Stop rewarding layoffs as a sign of strength.
Cost-cutting is not strategy. Let’s reward sustainable scaling, not slash-and-burn accounting. - Build with flexibility, not bloat.
Don’t over-hire in Q1 just to lay off in Q4. Use AI, outsourcing, or temporary teams where appropriate—but don’t treat full-time staff as disposable. - Prioritize humane offboarding.
Employees aren’t code you can delete. Treat exits with empathy—transparency, fair packages, warm handoffs. - Measure the cultural cost.
Every layoff damages morale, retention, and trust. Companies that ignore that will struggle to retain the very talent they depend on.
So, What Now?
Tech is still an incredible industry—one of invention, speed, and impact. But if layoffs keep being the default fix for every dip in forecast, we risk building an ecosystem where no one feels safe, seen, or valued.
And that’s not just bad for workers. That’s bad for innovation.
Because at the end of the day, tech doesn’t run on code—it runs on people.
