What’s Happening in the Tech Industry Job Market
- besociety
- Aug 9
- 3 min read
Updated: Nov 21
This article explores recent events in the tech industry’s job market. In the past eighteen months, there have been a significant number of layoffs due to AI and over-hiring at top tech firms.
One reason for these mass layoffs in the tech industry is over-hiring during the pandemic. A few years ago, when the world went into lockdown, we experienced a dramatic shift in the way we worked. Instead of going into the office, people used online meetings to communicate, leading to an increase in the use of services such as Zoom. Our reliance on these online tools can be seen in the price of Zoom’s stock (ZM). On 18 April 2019, Zoom went public and started trading at $62. As COVID-19 lockdowns were enforced worldwide in early 2020, the stock price rapidly grew, reaching a peak of $559 in October 2020. This rise in stock price is directly in line with its increase in workforce, as the number of employees increased by 101% in anticipation of higher demand for their service. In 2023, however, Zoom slashed its staff by 15%. The reason? A post-pandemic slowdown and lack of demand for online video calls—in other words, too many workers and not enough work. This is not a problem unique to Zoom. Mark Zuckerberg has also stated that Meta overestimated the long-term growth expected for tech businesses off the back of the pandemic.
AI is another obvious reason for significant job loss in the tech industry. Due to its speed, it can solve problems faster than people can. Where a website may take weeks or months to build, WordPress’s new AI site builder is able to create basic webpages in a matter of minutes, though it does require guidance for complex e-commerce websites. Klarna is another example of AI reducing jobs in the tech world. CEO Sebastian Siemiatkowski stated in an interview with CNBC that AI has helped shrink the company’s workforce by around 40%, reducing staff from over 5,000 employees to 3,422. While the time-saving aspect of AI is important, cost is also a major factor. Hiring a person in a specialised field such as tech can cost upwards of £60,000 per year. Why would a business pay several people that amount when a cheaper AI subscription can get the job done in half the time? This trend of reducing staff in favour of AI tools is not limited to tech giants. JP Morgan has warned that their staff may reduce by up to 10% due to AI, as it is expected to increase efficiency and be used as a method of growth going forward. With market-leading bulge-bracket investment banks taking an AI-first approach, it is likely others will follow, replacing jobs in the finance industry along with the tech industry.
Even though several businesses are letting large numbers of staff go, some firms continue to hire highly skilled workers. A key example is Meta. While they have let go of some employees over the past year and a half, they are also seeking the best talent in the AI field, with Mark Zuckerberg offering $100 million in signing bonuses and leading recruitment for the new “Superintelligence” lab. His team already includes top talent such as the ex-CEO of Scale AI, Alexandr Wang.
In conclusion, there have been significant job losses across the tech industry due to several factors, the most notable being over-hiring during the pandemic and the rise of AI, which has replaced jobs through its ability to work faster and more efficiently without sacrificing accuracy. At the same time, tech giants such as Meta are competing to secure top talent to develop their own AI tools.
Written by – Tom Dykes
Position – Secretary
Date – 23/07/25
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