The Tech Boom is Over, and the Layoffs are Real

chase4concept/Shutterstock.com
chase4concept/Shutterstock.com

Once upon a time, tech was THE career to get into. If you could launch a useful app or website, you had the potential to make it big – or sell it to a competitor for millions of dollars. The Big Tech boom that includes the prospering of Meta (the owner of Facebook), Alphabet (the owner of Google), and more has come to an end.

Are these companies going away? Absolutely not. But just as tech can boom, it can also bust. And much of that right now is because of Joe Biden and his liberal administration.

Even Wall Street knows that the boom is over, and traders are acting accordingly.

It’s not as if the industry is dead or even dying. Over the past decade, there were countless companies that exploded, and billionaires were created left and right. And those who launched during COVID even benefited since people weren’t leaving their homes. People spent all their time online and on social media.

With everyone back to work, there isn’t as much time being spent online and on social media. And spends are down because of inflation.

While it took a bit longer for the down-turned economy to catch up with tech, it has finally happened. And as a result, many companies throughout Silicon Valley are laying off workers. And we’re not talking about a few computer engineers. We’re talking about tens of thousands of employees.

Stock prices are in the toilet.

The next time you walk into a coffee shop and ask for your café latte with extra whip, it may be a software engineer who is serving it to you.

Apple and Amazon are in the middle of a hiring freeze. Meanwhile, companies like Opendoor and Stripe have laid off 18% and 14% of their force, respectively.

The Washington Post explains that we were in a bull market that made it possible for those in the tech industry to create massive amounts of wealth. However, the market is changing – and many are bracing for the inevitable recession.

“Executives at the companies making the cuts blamed a variety of interconnected factors – overzealous hiring during the pandemic, a slowdown in e-commerce activity and people spending less time online as in-person events return.”

Of course, rising interest rates certainly aren’t helping matters. Those who are still in the startup phase are experiencing a failure to launch because everything is more expensive, and people have stopped investing in tech at the moment.

For those who haven’t been affected by the economy, now might actually be the time to start investing in tech because the stock is so far down. Amazon, Alphabet, and Meta are all down by 40 percent or more.

And for those who have been laid off, it’s not going to be easy. Since tech companies are laying people off and others are on hiring freezes, it’s not possible to get multiple offers like it was a year or two ago.

Even those with the most impressive resumes may find themselves without any job opportunities. And why? They’ll be competing with the tens of thousands of others throughout the tech world who have also been laid off.

Only the strong will survive. And the weak, well, they may need to get used to a very different outlook. It will be time for everyone to lower their expectations.

And when they no longer have a spa-like campus to work on, they can thank Joe Biden for their new predicament.