In an unprecedented shift that has sent ripples through Silicon Valley and beyond, the technology sector in the United States experienced large-scale workforce reductions beginning in 2022, shattering the long-held illusion that tech jobs were impervious to layoffs. This mass downsizing, which has persisted through 2023 and into 2024, has seen some of the industry’s giants such as Meta, Microsoft, and Amazon eliminate tens of thousands of jobs. The collective effect of these cutbacks has resulted in over half a million tech workers losing their positions, drawing intense scrutiny and concern from industry watchers, economists, and affected employees alike.
The shockwave from these layoffs was particularly jarring because, for the previous two decades, the tech industry was widely perceived as resilient to economic downturns, especially when compared to traditional sectors. Since the dot-com bubble burst in 2001, large-scale layoffs in tech had been rare, engendering a widespread belief that tech roles represented a stable and secure avenue for career growth. However, the cascading layoffs starting in late 2022 abruptly dismantled this rhetoric. Beyond simply economic necessity, the manner in which many workers discovered their job loss—through abrupt deactivation of work accounts or impersonal mass communications—added to the disillusionment and emotional toll on employees.
The macroeconomic backdrop to these layoffs included persistent high interest rates, overall revenue declines within the tech sector, and an overexpansion of workforces during the pandemic period, when digital infrastructures and platforms saw skyrocketing demand. However, it is critical to note that some companies undertaking layoffs were still posting record profits. Analysts have speculated that, beyond financial recalibration, these layoffs served strategic corporate interests such as enhancing stock valuations and resetting labor relations to tilt power dynamics more favorably towards employers. The normalization of layoffs by marquee firms created a domino effect, prompting startups and mid-sized companies to adopt similar costs-cutting measures.
Amid this landscape of upheaval, a team of researchers from the University of Washington embarked on a pioneering investigation into the human impact of these workforce reductions. In 2023, they enrolled 29 laid-off tech workers from across the United States in a five-week reflective study. Through guided prompts and a moderated Slack community, participants discussed their experiences with job searching, workplace culture, and prospects for collective labor organizing. The study illuminated a complex emotional terrain characterized by ambivalence—workers simultaneously critiqued the industry’s shortcomings while expressing intentions to remain in the tech field.
The research team, led by doctoral student Samuel So, revealed how this ambivalence is deeply entangled with what cultural theorist Lauren Berlant terms "cruel optimism." This concept encapsulates a paradoxical attachment to an ideal—in this case, the vision of the tech industry as a path to personal and professional fulfillment—that, upon closer inspection, undermines well-being. Tech workers in the study described clinging to aspirational narratives about innovation and societal impact even while feeling disenchanted with the day-to-day realities of their work, which often involved repetitive, uninspired tasks removed from any sense of meaningful contribution.
One of the unique dimensions of tech layoffs compared to other industries is the juxtaposition of cutting-edge technological investments alongside mass dismissals. Many companies simultaneously announced billion-dollar commitments to generative artificial intelligence initiatives while shedding large portions of their workforce. This dichotomy created internal tensions and feelings of alienation among employees who perceived that emerging technology projects were prioritized over employee welfare, exacerbating disillusionment. The public spectacle of layoffs alongside industry hype further eroded trust in corporate leadership and fueled narratives of corporate detachment from worker interests.
Despite the erosion of the "tech utopia" mythos, the researchers found that most affected workers did not intend to abandon the industry. This presents a paradox within the tech labor ecosystem: employees are increasingly aware of the gulf between their expectations and reality but feel tethered by economic necessity, skill specialization, and the absence of viable alternatives. The study highlighted how many entered the industry with dreams of transformative societal influence only to confront the monotonous or ethically fraught nature of their projects, challenging their initial motivations and fostering a sense of betrayal.
This complex emotional landscape suggests a collective reckoning within tech culture, which has traditionally prized loyalty to a set of leadership principles and company values—and where dissent was often stigmatized. Participants described the tech sector’s culture as akin to a "cult," with charismatic leadership and mission-driven rhetoric functioning as orthodoxy. The mass layoffs, however, cracked open space for critical reflection and workplace organizing that had previously been marginal. Workers began to question long-held beliefs and express a desire for solidarity and collective bargaining, despite the industry’s historical resistance to unionization.
Crucially, the researchers underscore that mass layoffs are neither new to the broader economy nor inevitable within tech. Historical precedent illustrates moments when tech workers successfully mobilized to contest layoffs and other precarity. Yet, given the industry’s entrenched anti-union stance—rooted in a narrative that unions stifle innovation—current attempts at collective action face substantial hurdles. The study participants expressed cautious hope but also a pervasive sense of powerlessness, underscoring the need for new strategies that reshape labor relations in tech.
Individual coping mechanisms emerged as a significant theme in the study. Many displaced workers resolved to recalibrate their relationship with work—viewing jobs more as transactional rather than identity-defining or values-expressive engagements. This adjustment serves as a means of psychological survival but risks engendering isolation and resignation, where systemic issues go unchallenged. Researchers advocate for channeling these feelings of discontent toward collective engagement, emphasizing that simply sharing grievances within trusted networks is an embryonic form of organizing.
The University of Washington team highlights existing organizations like the Tech Workers Coalition, which operate across company lines and geographic boundaries, as models for fostering collective power in a fragmented industry landscape. By creating safe and inclusive forums for dialogue, these groups help to break the isolation barrier and kindle a more organized resistance to exploitative labor practices. Such efforts could herald a crucial shift in tech labor dynamics, aligning with broader societal movements seeking to redefine the relationship between work, well-being, and justice.
This study, funded by the U.S. National Science Foundation and presented at the ACM CHI Conference on Human Factors in Computing Systems in 2025, offers a timely and nuanced lens on the evolving tech labor ecosystem. It paints a picture of an industry at a crossroads, grappling with the contradictions between exponential technological advancement and persistent human costs. Recognizing and addressing these contradictions through collective action and cultural change could determine the future sustainability and moral fabric of the tech sector.
Subject of Research: Tech workers’ experiences and emotional responses following major layoffs in the U.S. technology industry
Article Title: The Cruel Optimism of Tech Work: Tech Workers’ Affective Attachments in the Aftermath of 2022-23 Tech Layoffs
News Publication Date: 25-Apr-2025
Web References:
- https://dx.doi.org/10.1145/3706598.3713434
- https://layoffs.fyi/
- https://www.cnbc.com/2022/11/09/tech-layoffs-2022.html
- https://www.cnbc.com/2023/01/18/microsoft-is-laying-off-10000-employees.html
References:
- Berlant, Lauren. Cruel Optimism. Duke University Press.
- University of Washington CHI Conference Paper, 2025.
Keywords: Social sciences, Social research, Social surveys, Technology industry layoffs, Tech worker organizing, Labor relations, Cruel optimism, Workforce disillusionment
