Why widespread tech layoffs persist despite a strong U.S. economy – NBC 5 Dallas-Fort Worth

The technology sector is celebrating 2024. It's Nvidia Crushed earnings expectations. The The rise of artificial intelligence is in full swing. Technology intensive Nasdaq The index is up more than 8 percent year to date.

The US economy is also doing surprisingly well. It added 353,000 jobs in January. Ahead of economists' predictions. Higher than expected inflation data It could also keep the central bank from cutting rates As the market expects, it is a sign that the economy is strong enough to support tighter monetary policy over the long term.

It's a different story for technical staff.

„Layoffs as early as 2024 signal a dramatic shift in the tech industry,” said Jeff Schulman, a professor at the University of Washington's Foster School of Business. „We're going to continue to see layoffs because the future of technology has changed, investors' appetite for risk and growth and profitability has changed dramatically, and the future of work has changed.”

The number of tech sector layoffs in 2024 will exceed the number of layoffs in 2023. So far, about 42,324 technical employees have been released in 2024. layoffs.fyi, which tracks layoffs in the tech industry. An average of 780 layoffs every day in 2024.

There are many factors behind the buzz. AI is at the forefront. Companies need to free up cash to invest in the chips and servers that run the AI ​​models behind these new technologies. There is also a stock market effect. Companies that conducted layoffs were not punished by investors or their bottom lines. In fact, they have been rewarded with rising share prices.

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Watch the video above to learn why tech workers may be in for another tough layoff and why the surprising strength of the U.S. economy may not come to their rescue.

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