7:26 pm - February 23, 2026
The parking lot outside a big tech campus appeared oddly normal on a dreary Silicon Valley morning. A couple of workers entered with coffee. Others were silently checking their phones by their cars. Nothing noteworthy. However, dozens of people’s security badges had already been disabled inside, and their access had been discreetly revoked over night. The way that regular layoffs have begun to feel is unnerving.
The public explanation has sounded straightforward for years: the industry is changing, businesses are becoming more efficient, and artificial intelligence is replacing jobs. Part of those reasons are valid. However, observing these choices up close gives the impression that the cycle is being driven by something more profound and little talked about.
It’s possible that layoffs nowadays are more about signaling than survival.
When Meta laid off thousands of employees at the beginning of 2024, its stock price skyrocketed. At Microsoft and Google, the same trend was observed. The cuts were rewarded by investors, who saw them as an indication of discipline. Workers were uneasy as they observed that job losses were being handled almost like a business plan.
Executive suites took notice of that response.
The term “managing expectations” is used subtly by those who work in tech companies. It alludes to influencing how investors view the future of a business. One of the quickest ways to boost profit margins on paper is to reduce headcount. After all, the biggest expense is frequently payroll.
Numbers appear cleaner when people are cut out. Shareholders are pleased with cleaner numbers.
Today’s open-plan offices show subtle but noticeable changes. Whole desk rows are vacant. Previously used for brainstorming sessions, meeting rooms are now used for smaller groups. Even though some teams only have half of their former workforce, the business still runs.
Uncomfortable conclusions have resulted from that observation.
During the pandemic hiring boom, executives started to realize something. Many businesses had made a lot of hires out of concern for a lack of skilled workers and growing demand. However, they found they could function with fewer employees than anticipated when growth slowed.
It was swiftly corrected. Furthermore, it hasn’t entirely stopped.
Additionally, funds are being invested in artificial intelligence. Investing heavily in data centers, specialized chips, and new infrastructure is necessary to build sophisticated AI systems. Businesses require billions. There must be a source for that money.
Payroll is often the source.
The irony is difficult to miss. Workers may lose their jobs as a result of businesses investing in machines that they believe will eventually increase revenue, rather than because machines have replaced them. Layoffs are happening right now. If there is a payoff, it comes later.
Some workers are aware of this. Others are caught off guard.
One former engineer in San Francisco recounted seeing coworkers quietly have their names taken out of internal directories and vanish in waves. The business was doing well. Revenue was high. Leadership, however, wanted to run “leaner.” The word “lean” has entered the industry lexicon. Lean seems effective. It sounds permanent, too.
Imitation is another force that is equally potent but more difficult to perceive. When one large corporation declares layoffs, others frequently follow suit. While competitors are reducing expenses, no executive wants to explain why their workforce is expanding. Layoffs spread throughout the industry like a virus. It’s still unclear if every business feels compelled to make cuts or if they actually need to.
Interest rates have also had an impact. When borrowing was inexpensive, businesses prioritized expansion. Profitability is more important now that capital costs more. Efficiency is what investors desire. Efficiency frequently results in fewer workers. The priorities changed. The repercussions ensued.
Additionally, there is a geographical reality. While reducing positions in pricey cities like San Francisco or Seattle, many businesses are covertly hiring in less expensive areas. There might not be a significant shift in the overall number of employees. However, where they work and their pay do matter. The difference doesn’t really matter to those who are impacted.
As this is happening, there’s a sense that tech layoffs have grown beyond a matter of necessity. They are changing the way the industry functions as part of a larger reset. Businesses are growing more measured, focused, and cautious. And possibly farther away from the people who constructed them.
In the past, the tech sector promised stability, expansion, and limitless possibilities. That promise is still there. However, it now feels more conditional. less robust. Every morning, employees continue to badge into their offices. They continue to write code, launch products, and attend meetings. But in the background, there’s a subdued awareness.
