The Bay Area’s wobbly tech industry is showing signs of stabilizing after suffering years-long waves of wrenching layoffs unleashed by the sector’s quest for improved efficiency.
And the long-term outlook of the region’s economy and technology industry remain healthy, according to Russell Hancock, president of Joint Venture Silicon Valley, a San Jose-based think tank. During 2023, the San Francisco-San Mateo region suffered a loss of 26,000 tech jobs — 52% of the 49,700 tech positions the entire Bay Area lost. In contrast, the South Bay lost 20,600 tech jobs or 41.4% of the total for the area. The East Bay, whose dependence on high-tech jobs is much lower than its neighbors to the west and south, lost 2,900 tech jobs, or 5.8% of the total for 2023.
Still, cutbacks have persisted in 2024. Over the first three months of this year, tech companies have slashed 11,000 jobs in the Bay Area. March 2024 is the most recent month for which state labor agency numbers are available, although layoffs have continued since then. Within the last few weeks, Tesla has announced plans to slash more than 3,000 Bay Area jobs.
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