Tech companies have seen rampant layoffs in the past 2-3 years, and Mark Zuckerberg explains why

Tech companies have been on a layoff spree from 2021 to 2023, and early signs this year suggest that the layoffs won’t be slowing down anytime soon. Companies like Google, Amazon, and even Meta have killed multiple projects, streamlined product teams, and realigned plans for the future. So, what are the main reasons for these layoffs? When will it end?

Meta CEO Mark Zuckerberg shared his thoughts on the matter in a recent interview, and he also walked us through the strategies tech companies have been developing over the past few years during and after the pandemic.

Zuckerberg said the first wave of layoffs during the pandemic were forced after excessive hiring, declining digital sales and a hit to the overall business. The Meta chief then highlighted the sudden change in industry strategy, where people are starting to see the benefits of streamlined setups. “It’s obviously been really hard, and we’ve parted with a lot of talented people that we care about. But in some ways, becoming leaner actually makes the company more efficient,” Zuckerberg said.

While it’s understandable that companies decide to cut costs rather than keep a bloated workforce, experts believe the decision to lay off employees can be made gradually rather than pushing everyone out of the company at once. But streamlining does not seem to be the only reason for layoffs in the past few months, especially since the beginning of 2024, when artificial intelligence has become the top focus of investment for most technology giants.

Zuckerberg interestingly noted that artificial intelligence was not the main reason his company recently laid off thousands of employees, but that tone may change as industry dynamics change. To be fair, companies don’t see anything wrong with these decisions, especially if their market caps rise, meaning investors want to focus on the business and nothing else. The Meta boss is also busy dealing with the entry of Apple’s Vision Pro headphones, which he reviewed and compared to his company’s Meta Quest headphones.