As Tech Layoffs Continue, Small Businesses Show More Stability in Workforce Management

Posted under: SMB
Date: 2024-02-08
As Tech Layoffs Continue, Small Businesses Show More Stability in Workforce Management

Silicon Valley, the tech industry, has been the subject of significant headlines and job cuts, confirming its influence and reputation. However, smaller companies can take comfort in the fact that they operate in a more stable and less volatile atmosphere. In 2023 alone, tech companies eliminated nearly 263,000 positions, and this year, the sector has taken up where it left off, with over 32,575 posts axed by 130 firms, including Amazon, Cisco, Meta, Microsoft, Google, TikTok, and Salesforce. The tech industry's ""big five"" have seen an 81% increase in combined sales over the past half-decade, despite job losses, due to increased online buying and the binge-hiring hangover in Silicon Valley. Big tech firms responded to a recession by implementing drastic layoffs due to the labor-saving potential of AI applications, reshaping over-hiring cycles, and increasing AI investment.

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