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Two Important Charts for US Tech Layoffs
Chart one. In January alone, nearly 46,000 employees in the broader tech sector have been laid off, most of them coming from the likes of $META $MSFT and $GOOG. Sadly for those workers, companies like these tend to hold onto excess labour when they can afford to (the good times) and then can cut the fat when they have to (bad times).
During the good times, this prevents talented labour from joining rival firms.
Chart two. Despite the headlines, the US labour market is still strong, currently reporting record lows for unemployment. Zoom out.
Wonder why Apple wasn't as aggressive as other Big tech in hiring during 2021-22
Probably b/c its unlike the other 3.
The common businesses amongst microsoft, google and facebook is Ad-tech and Cloud, both of which Apple doesn't have (though they are building ads now)
@trendlinehq Good observation there Jas.
Apple looks very rational in retrospect. Speaking personally by knowing some people within these tech company hiring divisions, things just got out of hand and with them being so large it was hard to stop the hiring momentum. No one person could push a button to slow things down, or it wasn't on their list of priorities in 2021 early 2022
@ccm_brett can bet its now on their list of priorities!
The contrast between the big tech narrative that’s all over headlines with the simultaneously (remaining) strength of the labor market sure is something. Think labor market turns and follows suit? Or will the layoff frenzy be tamed to just tech sector that overhired for the last decade..
@jensen media has to sell their story and gather their clicks!
@jensen there should be some spill over effect
- fewer ipos means less banking sector is impacted - either layoffs or less bonuses
- the tech employees are some of the highest paid - so less consumption impacts all other sectors
I wonder if other companies are using the tech layoffs as encouragement to trim the fat as well? I appreciate your inclusion of the FRED chart but anecdotally at least I'm hearing of layoffs, reorgs, and hiring freezes at some of the relatively smaller companies where friends and family work.
I wonder why companies don't do the needed cuts as big as they should right now, its better for the companies but also for the people to re-enter the labor market right now while it's still strong than later when it might not be the case anymore.
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