Dive Brief:
- A recent study conducted by SiliconValley.com of data released by CA state labor officials and Beason Economics shows that annual job growth in the CA tech sector has dropped down to 3.5%, down from 6% growth in 2015 and 6.4% growth in 2014.
- Several companies have threatened to lay off a combined 2,000 tech workers in the early part of 2017, according to recently filed WARN notices. Oracle, NetApp and Visa are among the top companies slashing jobs.
- Changing business models, unsuccessful goals and the need for new skill sets to keep up with technological advancements have all contributed to the slowdown, according to the report.
Dive Insight:
Silicon Valley has long been a Mecca of tech talent, owing to the leading companies who call the area home. But like all industries, changes in the tech industry lead to restructuring and layoffs. This is a common process in the job market.
The people who have been notified of their jobs being cut are likely already being wooed by other firms, particularly the rapidly growing startup market. An increase in free-agent behavior among tech workers may encourage them either to create their own businesses or take on consulting roles.
Recruiters may see this as good news because it means more talent in the pipeline for the time being. In the next few months, we will be keeping an eye on what's happening in Silicon Valley as companies adjust to both economic and political trends.
