Tech layoffs have slowed down a bit since 2024, but they’re not going away. Learn more about what’s behind the wave of layoffs, how to stay safe, and how to upskill in high-demand roles like AI and cybersecurity.

The biggest tech companies conducting the largest number of layoffs are sitting atop mountains of cash and are wildly profitable, so the cuts are not a matter of survival or necessity. One of the most likely reasons is to satisfy investors. Publicly traded tech companies must provide a certain amount of revenue per employee in order to maintain stock value, so reducing headcount could be a way to boost earnings metrics.

A second reason is to defend against an economic downturn. As consumer spending slowed, many big tech organizations overestimated future demand for digital products and services and found themselves overstaffed. They may also need to reduce expenses to prepare for higher inflation and interest rates, which make it more expensive for them to operate.

The layoffs have been a blow to employees and the tech industry. The decline in job security may cause some workers to reconsider staying in the field, or even pursuing technology careers altogether. Freelancing and diversifying income through contract work can provide a steady stream of income while staying in the workforce, and upskilling is an excellent way to keep your skills fresh. It can also lead to new career opportunities outside the tech industry, such as in finance or healthcare.