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Dramatic Increase in Tech Layoffs in January 2022
LAST NOVEMBER, the tech industry was hit with a series of layoff announcements, leaving professionals in the field unsure of what the future held. In an attempt to gather more concrete data on the situation, IEEE Spectrum enlisted the help of Intellizence, an AI startup specializing in market intelligence services for corporate clients. While the data collected wasn’t exhaustive, it provided valuable insights into the extent of the problem.
Intellizence utilized a combination of WARN filings, news reports, and press releases, using AI-based tools to extract key details and piece together the bigger picture. The findings showed that the wave of layoffs in November was just the beginning, and there was no indication that it would subside anytime soon.
After a slight dip in layoff announcements in December, the numbers surged in January, with nearly double the amount of tech employees facing job cuts compared to November. Although the pace of layoffs has since stabilized, the figures remain alarmingly high.
The collected data revealed that January was an especially brutal month, with over 100,000 positions being eliminated in the tech sector. Since then, an additional 70,000-plus employees have received notice of layoffs. This brings the total number of tech jobs lost in the US since the start of the tech downturn last August to over a quarter of a million.
The impact of these layoffs has been felt across companies of all sizes, but some of the most significant job cuts came from tech giants such as Alphabet, Amazon, and Meta, accounting for over 75,000 layoffs combined.
As the tech industry continues to grapple with these challenges, professionals are left to navigate an uncertain landscape. It is essential to monitor the situation closely and stay updated on the latest developments.
Source: IEEE Spectrum, Intellizence.
