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In the past 18 months, more than 170,000 tech workers in the United States have lost their jobs. Used car startup Kavak is the latest global tech name to cut jobs.
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In the first 5 months of 2025 alone, more than 74,000 layoffs were recorded in tech companies, representing a 35% increase compared to the same period the previous year.
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Meta has never axed jobs on this scale before. 11,000 positions were about 13% of its workforce.
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In fields like programming, the losses are even more alarming. Between 2022 and 2024, 27% of jobs in this area disappeared, according to official data.
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Jeffrey Hinton, the so-called godfather of AI and a pioneer in the field, warns some industries may be hit harder than others.
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At the same time, average tech salaries have fallen by more than 12% nationwide. All of this has led tech workers to question whether the industry is still worth it.
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So, where are all the tech workers going? Mass layoffs in tech have not only reduced staff numbers, but also triggered significant labor migration. Thousands of highly skilled workers have been forced to seek new opportunities outside the traditional tech sector.
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Some individuals have managed to quickly rejoin smaller companies or take on similar roles, though often with less favorable compensation. Others have chosen to switch industries, start their own ventures, or pursue further education or professional development programs.
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Even though the overall unemployment rate in the United States has remained around 4.2% during the first half of 2025, the impact on tech employment has been significant.
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Layoffs are only above average in three sectors: tech, finance, and trucking.
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While the specific unemployment rate in the tech sector was 3.4% to 4% in May, this figure does not reflect the drop in entry-level hiring. It also fails to capture the increase in precarious work conditions such as freelancing or temporary contracts.
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Among those who lost their jobs, about half managed to reenter the labor market within 6 months. However, the types of jobs they found often differed from their previous roles.
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Only 32% were able to return to tech companies, usually smaller or less established ones. The rest transitioned into sectors such as finance, consulting, or manufacturing.
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As major companies like Meta, Google, Salesforce, and more cut thousands of jobs, other companies, some smaller, some in different sectors, were eager to bring in new talent.
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Abbott, for example, has hired more than 200 tech-specific employees in the past 6 months, and a company spokesperson says they plan to hire hundreds more in the coming years.
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According to various studies, around 10% of these workers move into the financial industry where there is sustained demand for professionals with experience in systems, data, and security.
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Another 8% join consulting firms while approximately 6% find opportunities in the healthcare sector, an area undergoing rapid digital transformation.
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Others are employed by logistics or manufacturing companies that are adopting smart technologies to optimize operations.
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In this context, the use of buyouts or voluntary exit programs has become common in large tech companies, a strategy that allows for discrete workforce reductions without resorting to formal layoffs.
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Under this model, employees are offered financial compensation to voluntarily leave their positions, helping companies avoid negative headlines and minimize reputational damage.
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Although framed as voluntary, these packages are often strategically targeted at specific roles or departments.
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Companies like Google, Meta, and Salesforce have adopted this practice over the past 2 years, offering severance packages that include extra weeks of pay, extended benefits, and job placement assistance.
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Google is offering buyouts to employees across several of its divisions, including the unit that houses its search, ad, and commerce businesses.
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The decline in opportunities at major tech firms has also fueled a rise in self-employment. Platforms such as Upwork, Fiverr, and TopTel have become common channels for offering professional services in software development, data analysis, or system maintenance.
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This model offers some flexibility, but does not guarantee financial stability or access to traditional benefits. For many, freelance work serves as a temporary solution while they develop a new career strategy or acquire more in-demand skills.
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At the same time, there has been growing interest in entrepreneurship. Some workers, particularly those with more experience and access to funding networks, have used severance pay or savings to launch startups.
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These ventures often focus on emerging areas such as educational technology, digital health, or decentralized financial services.
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Another path that has gained relevance in recent months is the transition of tech workers into the public sector, particularly in areas related to cyber security.
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The Department of Defense, the Cyber Security and Infrastructure Security Agency, and other government agencies have intensified their hiring efforts to strengthen systems against growing digital threats.
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This shift represents an opportunity for those seeking greater job stability and a sense of public mission.
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While government salaries are generally lower than those in the private sector, many professionals value the improved work-life balance, long-term benefits, and the chance to contribute to national security using their technical expertise.
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The adaptation process to this new landscape has also involved a strong emphasis on continued education. Many professionals are turning to certifications and intensive programs in areas like artificial intelligence due to its growing presence across a wide range of industries.
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Cars that drive themselves, facial recognition, detecting cancer potentially better than a doctor. These are just some of the technologies that artificial intelligence is fueling.
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Specialized courses on platforms such as Google Cloud, TensorFlow, or Python have grown in popularity along with graduate programs at universities focused on technology and business.
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This trend reflects a collective effort to remain relevant in an increasingly competitive and specialized market where general knowledge or traditional work experience is no longer enough.
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However, the process of re-entering the job market has not been uniform. There are significant disparities based on gender, age, and prior experience.
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Among those laid off from tech companies, women have faced greater challenges. Only 31% secured a new job within 3 months compared to 38% of men.
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Mid-career professionals have also encountered more difficulties due to perceptions of outdated skills or bias in recruitment processes.
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At the same time, recent graduates face a restrictive job market with entry-level openings down 50% since 2023.
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This summer, college graduates in America are looking for hire at a time when their unemployment rate is at 6%. That's nearly 2% higher than the overall national average.
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Companies justify this reduction with budget constraints and a growing trend toward automating low complexity tasks.
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The result of this phenomenon is an increasingly segmented tech job market. On one hand, there is high demand for highly qualified profiles with expertise in artificial intelligence, systems architecture, advanced automation, and data analytics.
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On the other hand, access to entry-level roles and generalist positions is narrowing, creating a divide between those already established in the industry and those trying to enter for the first time.
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But this divide is also reflected in salaries. While some senior professionals continue to earn over $200,000 a year in markets like San Francisco or New York, average wages have declined nationwide, particularly affecting those in transition or at the start of their careers.
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The top tech companies are facing hiring freezes and layoffs due to cost cutting measures.
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This new scenario presents challenges not only for workers, but also for educational institutions and policy makers.
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There is a growing need to promote reskilling programs, incentives for hiring new talent, and social protection schemes for independent workers.
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Additionally, it is essential to ensure transparency in layoff and hiring processes, as well as to facilitate mechanisms for labor mobility across sectors that make full use of this highly qualified workforce.
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