Why Tech Layoffs Are Normalized Now: A Shift from the 2010s Era
The Reality Check
I logged into LinkedIn last week. Five posts in a row. All layoffs.
Microsoft. Amazon. Google. Salesforce. Meta.
“Role eliminated.” “Position impacted.” “Restructuring.”
This was unthinkable in 2018. Back then, engineers were gold. Companies fought for talent. Signing bonuses. Free food. Laundry services. Stock options that actually meant something.
Now? Layoffs are just… normal. They happen every quarter. No one blinks.
I wanted to understand what changed. So I dug into economic data, job market trends, and hundreds of developer stories on Reddit. Here’s what I found.
The Short Answer
Tech layoffs are normalized now because of three fundamental shifts:
- Economic cycle ended - 14 years of growth stopped in 2022
- Engineers became “expenses” - From scarce assets to replaceable costs
- Layoff stigma disappeared - One company cuts, everyone follows
┌─────────────────────────────────────────────────────────────────────────┐│ 2010s vs 2020s: How Engineers Are Viewed │├─────────────────────────────────────────────────────────────────────────┤│ ││ 2010s 2020s ││ ───── ───── ││ ││ Engineers = ASSETS Engineers = EXPENSES ││ - Hard to find - Many available ││ - Expensive to lose - Cost to optimize ││ - Strategic investment - Operational expenditure ││ - Competitive advantage - Line item to trim ││ ││ "We need them more than "They need us more than ││ they need us" we need them" ││ │└─────────────────────────────────────────────────────────────────────────┘Let me explain how we got here.
The 2010s: Golden Era for Developers
I started coding professionally in 2015. The job market was insane.
What Made 2010s Special
Zero Interest Rate Policy (ZIRP)
The Federal Reserve kept interest rates near zero from 2008 to 2015. Even after they started raising, rates stayed historically low until 2022.
Year Fed Rate What Happened──── ───────── ────────────────────────────────────────2008-2015 0% - 0.25% Free money era begins2015-2019 0.25% - 2.5% Still historically low2020-2022 0% - 0.25% COVID: back to zero2022-2024 4% - 5.5% Rates spike: money gets expensiveWhat does this mean for tech? When money is cheap:
- Investors throw cash at startups
- Startups burn cash to grow (profit doesn’t matter)
- Companies hire aggressively
- Engineers become valuable because everyone is hiring
The Talent War
I remember 2017-2019 vividly:
- Google offered $500K+ total compensation for senior engineers
- Facebook gave $100K signing bonuses
- Startups promised massive equity
- Companies added perks: free food, gyms, nap pods, unlimited PTO
Why? Because engineers were scarce. Every company needed to build software, but there weren’t enough developers to go around.
┌──────────────────────────────────────────────────────────────┐│ ││ "We'll do anything to hire and keep engineers" ││ ││ - Salaries: Keep going up ││ - Layoffs: Almost never (too embarrassing) ││ - Culture: Perks, freedom, autonomy ││ - Goal: Growth at all costs ││ ││ Layoffs = Failure. They meant you planned wrong. ││ │└──────────────────────────────────────────────────────────────┘Layoffs Carried Stigma
In 2016, if a tech company did layoffs, it was news. Bad news. Investors questioned leadership. Engineers jumped ship. The company looked weak.
Layoffs meant: “We messed up. We hired too many people. We couldn’t manage growth.”
2022: Everything Changed
Three things happened that changed the game:
1. The Recession Arrived
After 14 years of economic expansion, we hit a recession. The tech-heavy NASDAQ dropped 33% in 2022.
Year Index Value Change──── ──────────── ──────────Jan 2020 ~9,000Dec 2020 ~12,800 +42% (pandemic boom)Nov 2021 ~16,000 +25% (peak)Dec 2022 ~10,500 -34% (crash)2. Interest Rates Spiked
The Fed raised rates from 0% to over 5% in 18 months. This is massive.
Interest Rate $1M Loan Annual Cost───────────── ────────────────────0.25% $2,5002.5% $25,0005.5% $55,000When money costs 20x more to borrow, companies can’t just burn cash. They need to show profits.
3. The First Big Layoffs Broke the Seal
In late 2022, Meta laid off 11,000 people. Then Amazon cut 18,000. Then Google cut 12,000.
And something interesting happened: the stock market rewarded them.
Company Layoff Date Stock Change (Next Month)──────── ──────────── ──────────────────────────Meta Nov 2022 +15%Amazon Jan 2023 +8%Google Jan 2023 +12%Microsoft Jan 2023 +10%Investors saw layoffs as “efficiency.” Not failure. Efficiency.
That changed everything.
The Normalization Cycle
I noticed something in my research. Layoffs became a cycle that reinforced itself:
┌─────────────────────┐ │ Company A cuts jobs │ └──────────┬──────────┘ │ ▼ ┌─────────────────────┐ │ Investors cheer │ │ Stock goes up │ └──────────┬──────────┘ │ ▼ ┌─────────────────────┐ │ Company B notices │ │ "Layoffs = good" │ └──────────┬──────────┘ │ ▼ ┌─────────────────────┐ │ Company B cuts │ │ jobs too │ └──────────┬──────────┘ │ ▼ ┌─────────────────────┐ │ Layoffs normal │ │ Stigma removed │ └─────────────────────┘Now layoffs happen every quarter. Companies use terms like:
- “Performance-based attrition”
- “Structural changes”
- “Efficiency improvements”
- “Aligning resources”
These are just nice words for firing people.
Engineers: From Asset to Expense
This is the most important shift. I’ll say it directly:
Companies no longer see engineers as scarce, strategic resources.
Why This Changed
1. Supply Increased
Year Bootcamp Grads CS Grads (US) Self-Taught──── ────────────── ───────────── ───────────2015 ~6,000 ~60,000 Unknown2020 ~30,000 ~80,000 Growing2025 ~50,000 ~100,000 MassiveMore developers = less leverage for each individual.
2. Outsourcing Got Better
Remote work proved distributed teams can work. Now companies hire from:
- Eastern Europe (strong talent, lower cost)
- India (massive engineering workforce)
- Latin America (time zone aligned with US)
3. AI Started Coding
I’m not saying AI replaces engineers. But AI makes some coding faster:
- Junior tasks take less time
- Code generation handles boilerplate
- Fewer engineers can do the same work
This changes the math for companies.
The New Mindset
┌────────────────────────────────────────────────────────────────┐│ ││ OLD (2010s): NEW (2020s): ││ ───────────── ───────────── ││ ││ "We need to retain them "We can replace them ││ at all costs" if needed" ││ ││ Hiring: Aggressive Hiring: Cautious ││ Firing: Rare, embarrassing Firing: Normal, quarterly ││ Salaries: Race to the top Salaries: Race to efficiency││ Culture: Employee-first Culture: Profit-first ││ ││ Engineers = Investment Engineers = OPEX ││ │└────────────────────────────────────────────────────────────────┘I found this comment from a senior manager on Reddit:
“In 2018, I had to fight to keep my team. In 2024, I had to fight to explain why I needed my team. The conversation completely flipped.” - Engineering Manager, 156 upvotes
The Workplace Culture Shift
This is something I experienced personally. The normalization of layoffs changed how people work.
Before: Collaboration
In the 2010s:
- Engineers helped each other
- Knowledge sharing was normal
- People took risks
- Teams were collaborative
After: Self-Preservation
Now:
- People hoard knowledge (job security)
- Helping others feels risky
- Everyone knows someone laid off
- Trust is lower
┌───────────────────────────────────────────────────────────┐│ ││ 2010s Culture 2020s Culture ││ ────────────── ────────────── ││ ││ "Let me help you" "I need to protect myself" ││ Share knowledge Hoard knowledge ││ Take risks Play safe ││ Trust teammates Question motives ││ Long-term thinking Short-term survival ││ │└───────────────────────────────────────────────────────────┘A top comment on Reddit captured this:
“Constant layoff waves normalized means people are unfriendly, territorial, and unhelpful. Everyone’s in self-preservation mode.” - 1,363 upvotes
What This Means for You
I’m not here to depress you. I want you to understand the system so you can navigate it.
The New Reality
- Job security is gone - Assume you could lose your job any day
- Loyalty is one-way - Companies will cut you when it helps them
- Skills matter more than tenure - Being there 5 years means nothing
- Network constantly - Your next job comes from connections
How to Adapt
┌──────────────────────────────────────────────────────────────┐│ ││ SKILLS MONEY NETWORK ││ ────── ───── ─────── ││ Learn constantly 6-month EF Stay ││ Be adaptable emergency connected ││ Specialize + diversify fund visible ││ ││ ════════════════════════════════════════════════════════ ││ ││ YOUR CAREER SURVIVAL TRIANGLE ││ ││ SKILLS (keep learning) ││ /\ ││ / \ ││ / \ ││ / \ ││ / \ ││ / \ ││ NETWORK ──┴────────────┴── MONEY ││ (who knows you) (financial buffer) ││ │└──────────────────────────────────────────────────────────────┘Specific Actions
Skills:
- Learn technologies in demand (not just popular)
- Build a portfolio you can show
- Write about what you learn (builds visibility)
- Don’t stop learning because you have a job
Money:
- Save 6 months of expenses minimum
- Live below your means
- Don’t count on stock options
- Have a side income if possible
Network:
- Stay in touch with former colleagues
- Go to meetups (virtual or in-person)
- Be active on LinkedIn/Twitter
- Help others (karma is real)
The Hard Truth
I’ll be direct: the 2010s were an anomaly.
Zero interest rates for 14 years. Infinite venture capital. A talent shortage that gave engineers incredible leverage.
That era is over.
┌───────────────────────────────────────────────────────────────┐│ ││ ERA CHARACTERISTICS ENGINEER STATUS ││ ──── ─────────────── ──────────────── ││ ││ 2000-2002 Dot-com crash Disposable ││ 2003-2007 Recovery Valuable ││ 2008-2009 Financial crisis Uncertain ││ 2010-2021 ZIRP + Tech boom Golden Era ││ 2022-Now Recession + AI rise Normalized layoffs ││ ││ History shows: Tech is cyclical. ││ What goes up, comes down. What's down, goes up. ││ │└───────────────────────────────────────────────────────────────┘This doesn’t mean software engineering is a bad career. It’s still one of the best-paid professions. You can still have a great life.
But the contract changed. Companies aren’t your family. Your job isn’t secure. The market isn’t always in your favor.
Understanding this is the first step to protecting yourself.
What I’m Doing Differently
I’ll share my personal changes:
Before (2010s mindset):
- Stayed at companies 3-4 years
- Trusted leadership to do right by me
- Didn’t worry about layoffs
- Spent most of my income
Now (2020s mindset):
- Re-evaluate job every year
- Keep resume updated always
- Maintain 8-month emergency fund
- Invest 30% of income
- Active on LinkedIn
- Side projects that could become income
It’s not pessimism. It’s realism.
Final Thoughts
The shift from 2010s to 2020s isn’t about one thing. It’s a combination:
┌────────────────────────────────────────────────────────────┐│ ││ Economic Factors │ Cultural Factors ││ ───────────────── │ ───────────────── ││ Recession after 14 years │ Layoff stigma removed ││ Interest rates spiked │ "Efficiency" = firing ││ Investors want profits │ Quarterly cuts normalized ││ │ ││ ──────────────────────────┼──────────────────────────────││ │ ││ Supply Factors │ Technology Factors ││ ─────────────── │ ────────────────── ││ More bootcamp grads │ AI augments coding ││ Outsourcing easier │ Fewer devs do same work ││ Remote work globalized │ Skill shelf-life shorter ││ │└────────────────────────────────────────────────────────────┘I wrote this because I wish someone had explained this to me in 2022. I watched colleagues get blindsided. I saw talented engineers panic when they thought they were secure.
The system changed. You need to change with it.
Not out of fear. Out of understanding.
Final Words + More Resources
My intention with this article was to help others share my knowledge and experience. If you want to contact me, you can contact by email: Email me
Here are also the most important links from this article along with some further resources that will help you in this scope:
- 👨💻 Layoffs.fyi - Tech Layoff Tracker
- 👨💻 Federal Reserve Interest Rate History
- 👨💻 Stack Overflow Developer Survey 2024
- 👨💻 Reddit r/cscareerquestions Discussion
Oh, and if you found these resources useful, don’t forget to support me by starring the repo on GitHub!
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