Tech Industry Layoffs Could Help Soften Labor Conditions

With over 12.2 million tech industry workers in the U.S., the demand for tech talent became fierce directly before and after the pandemic which was only fueled by the remote working trend that eliminated many of the geographic constraints on hiring. In addition, it also forced many companies to go offshore to find talent. With the spike in recent tech industry layoffs, the tech industry could see labor conditions soften which might create some site selection activity for growing companies.  

Nearly 100,00 tech industry layoffs in the last year

Companies like Microsoft, Alphabet, Amazon, Salesforce, and others have shed nearly 100,000 jobs, which creates opportunities for companies needing tech talent. The layoffs come in a period of slowing growth, higher interest rates to battle inflation, and fears of a possible recession this year. This could spur some reshoring and new site selection projects from some of the mid-size and smaller tech companies that are growing.

Which companies are laying off workers?

To help you with your site selection and recruiting strategies, Site Selection Group has identified the following employers who announced some of the largest layoffs in the U.S. over the last year. If these companies have a large presence where you have an existing location or are looking to expand, then it could be a great opportunity to attract some tech workers. Below is a list compiled from various publications of companies that have recently announced layoffs.

Recent Tech Industry Layoffs

Conclusions

Finding quality tech talent such as software developers and engineers will continue to be a challenge for companies despite cyclical layoffs. As a result, companies need to carefully evaluate onshore, nearshore, and offshore options to identify the optimal long-term location solution utilizing a proven site selection process.