Over 25,000 Tech Workers Laid off Just in Past Month
In just the past 30 days, 24,931 employees have been laid off from companies in the tech industry, according to Layoffs.fyi.
That includes businesses such as Google, the Amazon-owned live streaming platform Twitch , Microsoft, and eBay.
It represents the largest round of monthly lay offs in the tech industry since April of 2023, and is something that even local game publisher Whitethorn Games has been affected by.
"We did unfortunately lose a small handful of people, like 3," said CEO Matthew White. "But we had to cancel a game in development and repurpose those employees to other things. "
"We move our employees here. The vast majority of our employees aren't from the city; what that means is that if we have to lose them, they have nowhere to go," continued White. "So we do think very hard about that. For a period of time last year, the executive board took no salary to make sure that we didn't have to lay off anymore than were absolutely necessary."
White says it's never an easy decision to let go of employees. He explains what other factors have led to job cuts across the video game and tech industries.
"So in 2020, money started flying into the economy like crazy as a result of the interest rate going to nothing," stated White.
"Obviously as consumer spending was available, [because] suddenly people were sitting in their living rooms 24 hours a day, so the spending on things like video games, streaming services, [and] delivery services skyrocketed. But once vaccines went into arms, and people started getting back to reality, obviously that money had to go away and people that took aggressive investments or IPOs at that time our kind of feeling that by now."
But Matt Wiertel, of VNET, Director of Sales & Business Development at VNET, says they've been able to avoid the layoffs affecting the tech industry.
"There are some acquisitions that do impact us sometimes, based on vendors, and you might have a [sales] rep or something that changes, but that's just kind of natural in the course of our industry," said Wiertel.
"That reset happens at the beginning or end of every year, and sometimes you have to rebuild those relationships, but it's something that obviously we've been able to weather this storm, whether it's VNET or one of our local competitors here in the tech industry. Technology keeps moving on and we all find a way to deliver those services to our customers."
According to a Twitter/X post, game developer Eidos-Montreal has also laid off 97 people from their team, in addition to canceling a new entry in the Deus Ex video game series.
This brings the total number of tech
job cuts in January 2024 to 25,301 so far.