Convergence of economic downturns affects the Bay Area tech industry
The Convergence of economic downturns has had a negative impact on the Bay Area’s tech industry, leading to the loss of over 11,000 tech jobs in 2025.
- Seasonally adjusted estimates by Beacon Economics indicate a decline in tech employment in the Bay Area.
- WARN notices from major tech companies have reported significant job cuts.
- The decline in tech employment is primarily observed in the San Francisco-San Mateo region.
During the first year of the coronavirus outbreak, tech companies staged massive hiring sprees to meet the demand for remote tech products.
Tech companies determined that they had over-hired during the coronavirus years, leading to widespread layoffs to rein in staffing levels.
While some optimists believed that the emerging field of artificial intelligence in San Francisco would provide a jobs lift, the opposite occurred, with tech job losses concentrated in the Bay Area.
According to Beacon Economics’ seasonally adjusted estimates, the San Francisco-San Mateo region has suffered the most severe decline in tech employment, with a net loss of 5,400 jobs.
Examples of Major Layoffs in the Bay Area
| Cause of Layoff | Company | Number of Jobs Cuts | Location | |
|---|---|---|---|---|
| Walmart Disclosed Job Cuts | Walmart | 108 | San Bruno site | |
| 53 | Sunnyvale | |||
| Microsoft Disclosed Job Cuts | Microsoft | 8 | Mountain View and Sunnyvale | |
| Cruise Disclosed Job Cut | Cruise | 1 | San Francisco |
As a reminder, the tech sector is no longer the robust engine that powers the Bay Area economy.