The widening layoffs in the tech and biotech sectors are poised to hit the Bay Area job market with brutal employment losses.
Post-pandemic layoffs in the tech and biotech sectors continue to widen, and the brutal job losses are set to loom over the region’s economy for months.
“We’ve reached the point where layoffs are becoming widespread in tech and biotech,” said Russell Hancock, president of Joint Venture, a San Jose-based think tank. “But it’s important to keep these numbers in perspective.” With the current wave of cutbacks, Big Tech is attempting to right-size its employee base in the wake of the coronavirus outbreak, which sparked a crush of people working, meeting and learning remotely due to the government-mandated business lockdowns to combat the deadly virus. Many tech companies whose products help enable remote work responded at the time by staffing up, only to discover later that not all of the changes wrought by the pandemic were permanent.
“There was an over-exuberance in the tech industry because of the coronavirus,” said Rob Enderle, an Oregon-based tech analyst. “Tech companies ramped up to meet the demand for their services and products and they thought that demand would become permanent. But the demand turned out to be transitory.”
Ominously, 2023 has also brought the two worst months for completed or planned job cuts in the current cycle of staffing reductions, according to the WARN notices. In January, tech and biotech companies orchestrated the layoffs of 5,384 employees in Bay Area cities. In March, the projected layoff numbers currently total about 5,248.
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