The Truth About Tech Layoffs: Why They're Not About Saving Money

Despite record profits, Big Tech laid off 200K+ workers in 2023-2024. Analysis shows layoffs were driven by: refocusing on AI (shifting headcount from legacy products), stock price signaling (layoffs boost stock 5-10%), and correcting pandemic overhiring. Many laid-off workers found better-paying jobs at startups. The narrative of 'tech crisis' was misleading — tech employment remains near all-time highs. What changed is where the jobs are (fewer Big Tech, more AI startups).