Silicon Valley Blues: High Tech Job Cuts Soar to Highest Level Since Dot-Com Crash

The once-thriving tech industry is now grappling with a harsh reality as widespread layoffs continue to sweep through the sector, leaving tens of thousands of workers struggling to find new employment.

CNBC reports that the technology industry is facing its most significant job losses since the dot-com crash of 2001, with more than 50,000 positions eliminated across over 200 companies in 2024 alone, according to data from Layoffs.fyi. This follows the 260,000 layoffs that occurred in 2023, which impacted nearly 1,200 tech companies. The current situation is a stark contrast to the booming market for AI engineers, who have seen salaries rise by 12 percent in the last quarter of 2023, with senior AI engineers earning an average of more than $190,000 nationally.

Major players in the industry, such as Google, Amazon, Mark Zuckerberg’s Meta, and Microsoft, have all taken part in the downsizing, along with companies like eBay, Unity Software, SAP, and Cisco. While Wall Street has largely applauded these cost-cutting measures, the reality for those affected is far from positive. Many highly skilled workers are now settling for lower-paying positions or even leaving the tech industry altogether.

Allison Croisant, a data scientist with a decade of experience in technology, was among those laid off by PayPal earlier this year. She described the job search process as “insane,” noting that “everybody else is also getting laid off.” Croisant applied to 48 openings and landed only two interviews during her five weeks of job hunting. She eventually accepted a lower-level data analyst role with a roughly $3,000 reduction in her base pay.

Krysten Powers, who was laid off from travel tech startup Flyr in January after two years in marketing, echoed Croisant’s sentiments. Powers said navigating the current labor market is like a full-time job, “sometimes even harder.” She added, “You’re putting out resumes and getting almost immediate rejections. It does take a toll on your confidence, and you get this sort of imposter syndrome.”

Even former employees of Google, once considered the home of Silicon Valley’s elite talent, are not immune to these challenges. Christopher Fong, founder of Xoogler.co, a support group for laid-off Google employees, stated that the “biggest challenge” for many ex-Google workers is finding a job that maintains their previous level of pay.

The current job market for tech workers is a far cry from just a couple of years ago when software developers and data scientists were among the most sought-after professionals. Amit Mittal, a software engineering manager laid off from AI lending company Upstart, noted that the hiring process has become “a lot more demanding,” with candidates competing against those with significantly more experience for the same positions.

For some, like Bill Vezey, a software engineer laid off by eBay after 13 years, the job search process has become a “new game” with different rules. Vezey emphasized the importance of personal branding and networking to access the “hidden job market.” Despite the challenges, Vezey remains optimistic about his prospects and hopes to be rehired by his longtime employer.

Read more at CNBC here.

Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.