Communications of the ACM
Tech Companies Lay Off Workers at Highest Rate Since 2020
"Good big companies are overstaffed by 2x," a noted venture capitalist said.
Credit: Getty Images
Technology companies in May axed employees at the highest rate in two years, as rising interest rates and a stock market selloff squeeze startups and big tech firms alike.
Sixty-six tech firms handed out a whopping 16,800 pink slips last month. That's more than the 13,600 layoffs across 52 companies during the first four months of 2022 combined — and the most employees to get the axe in a single month since May 2020, according to tech jobs tracking site layoffs.fyi.
The news comes after tech companies hired aggressively and competed fiercely for talent in late 2020 and 2021.
Large tech firms including Facebook parent Meta and Twitter have both frozen hiring altogether for some departments, while other companies including Microsoft, Snap, Uber, Salesforce, Instacart, and Coinbase have slowed hiring.
From New York Post
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