On February 2, 2023, Allison Croisant, a data scientist with nearly a decade of experience in technology, found herself among the growing number of unemployed tech workers after being laid off by PayPal earlier in the year. Speaking from her home in Omaha, Nebraska, where she had worked remotely for PayPal, Croisant described the current job market as “insane.”
The tech industry has seen over 50,000 workers laid off from more than 200 companies since the beginning of the year, according to Layoffs.fyi. This trend follows a larger pattern in 2023, which saw over 260,000 tech workers lose their jobs across nearly 1,200 companies. Major players like Alphabet, Amazon, Meta, and Microsoft have all participated in these layoffs, signaling a significant shift in the industry.
For Croisant and many others, the road to finding new employment has been challenging. 2023 marked the second-largest year of tech job cuts on record, only behind the dot-com crash in 2001, according to Challenger, Gray & Christmas. The landscape has become increasingly competitive, with job listings requiring stringent qualifications and offering lower pay than before.
Even software developers and data scientists, once highly sought-after in the job market, are now facing uncertainty. Roger Lee, the creator of Layoffs.fyi, noted that many in the industry are considering leaving tech altogether or accepting roles with less stability and lower pay.
Croisant’s own job search involved applying to dozens of positions, facing stiff competition with hundreds of other applicants. Ultimately, she accepted a lower-level data analyst role with a pay cut to secure a contract position at a financial technology company.
The challenges extend beyond just lower pay and increased competition. Former Google employees, who were once part of Silicon Valley’s elite talent pool, are also feeling the effects of the industry-wide shifts. Christopher Fong, a former Google employee and founder of Xoogler.co, highlighted the struggle many face in finding jobs that match their previous level of compensation.
Despite the turmoil in the tech industry, there are pockets of growth, particularly in the AI sector. Salaries for AI engineers have seen a significant increase, with the average salary for a senior AI engineer surpassing $190,000 nationally. Amit Mittal, who was laid off from AI lending company Upstart, emphasized the changing landscape of the job market, where candidates with years of experience are now competing for the same positions.
As tech workers like Croisant and Mittal navigate this evolving job market, the industry is undergoing a transformation that may redefine the future of technology employment.