The ‘golden handcuffs’ came off for these Bay Area tech workers

Evan Richardson grew up in Silicon Valley, surrounded by large technological companies that have transformed the way people live, socialize and work.

As a curious person, Richardson dismantled the electronics and replaced them. A career in technology seemed to be a natural and safe path after its service in the army.

“Technology has always been an industry in which you are going, you will earn a lot of money and you will never be dismissed,” he said.

For thousands of technology workers like Richardson, these days are over. In March, the 43 -year -old Hayward resident was caught up when he learned that his employer, the Square payment company, eliminated his role as a development engineer and operations due to a reorganization.

Square’s parent company, Block, based in Oakland, planned to lose 931 jobs, or 8% of its workforce, citing performance problems and the need to create a more rationalized operation.

In California, cuts will start next month and allocate 240 employees, including engineers, designers and writers, according to a notice of state employment development service.

The Block Company logo is seen displayed on a smartphone screen.

(SOPA / Lightrocket images via Getty Images)

Block is one of the main technological companies in the San Francisco Bay region who hit their salary this year. Meta, Google, Autodesk, Workday and others have also announced job cuts. Intel plans to reduce more than 20% of its workforce, Bloomberg reported. Thursday, the flea manufacturer based in Santa Clara confirmed that he would be dismissed from workers to “conduct better execution more efficient in the company”.

“I am a great supporter of philosophy that the best leaders draw the most with the fewest people,” the Employees of Intel CEO, Lip-Bu Tan in an email, told employees. The company lost $ 821 million in the first quarter.

In a region known for boom and bust cycles, these technology industry layoffs give a sector that is vital for the economy of California, recently classified fourth in the world.

In addition to supporting high salary jobs, technological companies offer employees purchase options, so that the State benefits from capital gains, the profit made when the shareholder sells its shares at a higher price.

“When cuts occur in Silicon Valley, traditionally, it has all affected, wages and taxes with even state income,” said Kevin Klowden, executive director of the Milken Institute, an economic reflection group in Santa Monica.

The numbers are dark, but not as bad as in 2023, when dismissals increased. American technological companies announced 37,097 job cuts from January to March, down 13% compared to the same period last year, according to a report De Challenger, Gray & Christmas, a company that offers job search and career transition coaching. In 2023, technological companies announced 102,391 cuts in the first three months of this year.

In California, companies of the first quarter of this year announced 17,874 technological decreases, which include companies mainly engaged in the development of software or the manufacture of computer hardware, according to Challenger, Gray & Christmas. The company collects reporting data, companies’ deposits, annual reports, press releases and layoff.

Overhead during the pandemic, when more people turned to online purchases, videoconference and social media, have fueled a large part of layoffs in recent years, according to experts.

“Many of these technological companies that have hired on the Moon turn to Earth,” said Andy Challenger, Vice-President Director of Challenger, Gray & Christmas.

But other factors stimulate the last series of layoffs, according to economists. They say that companies are more closely working on the productivity and performance of people and that they move from resources to investment in artificial intelligence.

The economic uncertainty caused by regulatory changes such as prices and changes in immigration policies also pushes companies to slow down costs.

“There is just general discomfort on the economy, especially in recent months. We have seen a slowdown in hiring really at all levels,” said Dante Deantonio, principal director of economic research at Moody’s Analytics.

For technology workers in shock from all job losses, industry feels much less stable.
Technology is evolving quickly, as is the priorities of a business. One day in which you are, the next day, you came out.

Although some evaluate if they want to stay in technology, others have trouble abandoning wages, benefits and high advantages.

Maria Jose Calero was dismissed from Autodesk after six years to the company of San Francisco, where she worked as program manager and trading partner.

Autodesk, which manufactures software used by architects, designers and engineers, announced in February that it will reduce 1,350 positions, or around 9% of its workforce. He cited geopolitical and macroeconomic factors as well as his efforts to invest more in AI, a regulatory The classification says.

These reasons were little consolation for Calero. The 36 -year -old San Francisco resident said that the technological industry had offered stability and opportunities to develop her career.

She envisages jobs in other industries, including health care and hospitality, but is not sure that they will pay enough to cover her invoices, a mortgage and for the daycare of her daughter.

“Technology is difficult to move away,” she said. “It’s like golden handcuffs because where do you find a salary that corresponds to what you had?”

Large companies such as Meta saying that they aim at low performers, the unemployed have pushed allegations on social networks.

Among them, Adam Espinoza, who recently lost his job as a software engineer at Meta. In February, the social network began to reduce around 5% of its workforce, or around 3,600 employees, the last in a series of job discounts in recent years.

Espinoza said that he had met all expectations and even spoke to his manager of a promotion when he was told that he would be released.

“It also tells me that I shouldn’t have been on the blockage, but I was,” said the 28 -year -old.

Like other workers, said Espinoza, he saw a change in culture within technological companies, which have moved away from efforts to promote diversity.

At Meta, he said that if you did not regularly exceed expectations as an engineer, you could be replaced by artificial intelligence or if the company could hire someone new for lower or less compensation remuneration.

Participants visit the Meta stand during the game developer conference in San Francisco.

(Jeff Chiu / Associated Press)

However, Espinoza does not intend to leave industry. He grew up in Rosemead in the era of Internet and AOL dial-up and was attracted by the way engineers have solved the problems. His career in technology finally brought him to San Francisco.

“I plan to stay in the technology industry for the moment. This is certainly something that I like to do,” he said.

Chase Foti-Landis, who was dismissed from his work in the Zendesk software company, always deals with what happened.

The company based in San Francisco declared in February that it linked 51 employees in California, according to a notice filed with the State. The cuts included senior executives, the vice-president of the main products and directors.

Although the layoffs occurred in the company before, Foti-Landis said that his team was already thin, so losing his job as a security analyst was a “total surprise”. Zendesk had reduced 8% of its workforce in 2023.

“I was made to think that it could never happen to me,” he said.

Foti-Landis, 31, who worked at Zendesk for more than four years, pivoted technology after working as a sales and teacher partner.

Thinking about his next career move, he thought about whether he should work outside as a newspaper.

“So many times you work just in an office or work on the computer,” he said, “and you look outside, and you are just like” God, it’s beautiful outside. “”