Layoffs Assail Silicon Valley as Recession Fears Grow

Silicon Valley layoffs have continued as recession fears creep into America’s technology hotspot.

At least four more companies, including Malwarebytes and Shift Technologies, are set to remove hundreds of workers in the Bay Area this month, reported local media outlet Mercury News, citing data from California’s Labor Department.

As many as 38,000 US tech workers have lost their jobs so far this year, with June and July being the worst months for digital professionals, according to Crunchbase.

The recession fear is not sparing anxiety-reducing apps either. Wellness and meditation app Calm has reportedly laid off 20% of its staff.

The news comes amid reports that as large tech firms, such as Amazon, Microsoft and Google, have frozen hiring. Amazon laid off 99,000 workers globally between March and June this year. Shopify, another e-commerce platform, fired over 1,000 employees.

The layoffs may have eased the tech talent shortage, but it has certainly not decreased wages in the country. Thanks to the record inflation and talent shortage, US companies are reportedly seeing nearly 5% increases in labor costs.

Jobs cuts in the technology market began in March this year following the interest rate hike by the Federal Reserve. The policy change decreased fund inflow for startups, forcing many of them to tighten their belts.