Recent layoffs at Meta highlight a growing trend in the tech industry where companies are opting for recurring job cuts rather than large-scale reductions, Business Insider reports.
This shift comes as many tech firms, including Meta, Microsoft, and Google, adjust to changes in profitability and redirect resources toward growth areas such as artificial intelligence.
At Meta, layoffs were announced this week affecting Instagram, Reality Labs, and WhatsApp, though the exact number of jobs lost remains unclear. This move follows the company’s earlier sweeping layoffs in late 2022 and early 2023. According to Business Insider, a Meta spokesperson noted that the company is working to find new roles for affected employees.
Industry experts suggest that the new approach, involving more frequent, smaller layoffs, reflects a strategic shift. Art Zeile, CEO of tech career platform Dice, told Business Insider that tech companies are now “shifting bets” as they phase out less profitable departments and focus on emerging technologies. Zeile noted that recurring layoffs have become the “new normal” as firms navigate this transition.
While these continuous cuts might offer short-term financial relief, they come at a cost. According to Linsey Fagan, a talent strategy advisor at Indeed, repeated layoffs damage employee morale and diminish trust in leadership. Workers may sense layoffs coming, which hurts productivity even before cuts are made, and the impact on company culture can have long-term consequences.
Indeed’s survey of more than 1,100 US tech workers found that 40% expect to be affected by layoffs, and many are considering leaving their companies if job cuts continue. As a result, some workers are seeking roles outside the tech industry, often turning to staffing firms or industries like healthcare, which offer greater stability.
For companies like Meta, layoffs have been rewarded by Wall Street, with CEO Mark Zuckerberg’s decision to trim staff contributing to a rise in stock prices. However, as Zeile pointed out, investors will eventually want to see growth beyond cost-cutting measures. While Meta is downsizing in some areas, it continues to hire for roles in AI, signaling a shift in its workforce needs.
The tech industry may be on the path to stabilization, as Fagan suggested, with job postings in sectors like software development remaining flat in recent months. While opportunities have decreased compared to the pandemic hiring boom, companies appear to be avoiding the cycle of mass hiring followed by layoffs.
For workers like Andy Welfle, who experienced layoffs at both Microsoft and Cruise within a year, the uncertainty surrounding tech jobs has led to introspection. Welfle shared on LinkedIn that he is seeking a new role, perhaps with a smaller company, and reflecting on the challenges of navigating the job market amid ongoing cutbacks in the tech sector.
