From Great Resignation to Forced Resignation: Tech companies are shifting to layoffs after a huge ramp up in hiring

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Thousands of layoffs in the tech sector, compounded by hiring freezes and a slowdown in hiring, highlight the abrupt shift in fortunes over the past several months as a result of rampant inflation, fear of stagflation and recession.

Thousands of layoffs in the tech sector, compounded by hiring freezes and a slowdown in hiring, highlight the abrupt shift in fortunes over the past several months as a result of rampant inflation, fear of stagflation and recession, supply-chain interruptions, the war in Ukraine, an ailing stock market and other red-alert economic factors.

“ ‘The market cap aggregate of about 300 publicly traded tech companies with operations in San Francisco and the valley is at its lowest now, $9.98 trillion, since 2013 after peaking at nearly $15 trillion in November 2021.’” Diminished prospects and a balky market have already delayed the IPO dreams of startups and prompted others to scale back hiring plans. Max Cohen, co-founder and CEO of Sprinter Health, a startup in Menlo Park, Calif., initially planned to double headcount to 60 this year but has since reduced it to 48.

For now, Big Tech is taking a beating in market valuation. The market cap aggregate of about 300 publicly traded tech companies with operations in San Francisco and the valley is at its lowest now, $9.98 trillion, since late 2020 after peaking at nearly $15 trillion in November 2021, says Rachel Massaro, vice president of research at the Silicon Valley Institute for Regional Studies.

 

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