Tech layoffs are piling up in the Austin area. Here's what companies have been hit and why

After Austin’s newly minted “Silicon Valley of the South” reputation was cemented throughout the 2010s, an onslaught of high-level tech companies started moving to Texas’ Capital or building offices there. With this came a hiring boom that, after the effects of COVID-19, seemed like the much-needed rebound that the industry needed.

But now, as the industry moves into the mid 2020s, hiring is slowing and layoffs are continuing to pile up. Many are wondering if these layoffs are a symptom of a stumbling economy or an outcome unique to a tech industry in flux. Here’s what to know about why layoffs are happening and what major companies in the Austin area have seen layoffs.

Indeed lays off nearly 1,000 employees

Earlier this month, Austin-based Indeed.com’s CEO, Chris Hyams, announced that the company would be laying off about 1,000 workers. This round of layoffs amounted to about 8% of the online job search site's global workforce.

At the time of the layoffs, the Statesman asked how the cuts would play out at Indeed's Austin offices and a spokesman said the company would not comment beyond Hyams' letter. Consistently one of Austin’s largest Tech companies, and one of its original homegrown tech players, Indeed.com reported last summer that it employed 2,800 people in Austin, down about 100 employees from a year earlier.

Expedia layoffs impact dozens in Austin

In an attempt to shed 9% of its global workforce, Expedia announced in February that it would be letting dozens of workers in the Austin area go. In a Securities and Exchange Commission filing the online travel platform, based in Seattle with factions in Austin, also pointed to “restructuring” as a reason for the cuts.

Moreover, Expedia said it expected to cut 1,500 jobs worldwide by the end of the year. The company said it has informed affected employees of this.

Bumble cuts 350 jobs

In late February, online dating app Bumble announced that it would lay off roughly 350 employees as part of a “restructuring plan” for a more "agile" future.

The decision comes after the Austin-based company reported increased revenue and number of paying users last year. However, the company is still reporting a net loss of about $1.9 million.

Google cuts 12,000 jobs since 2023

After an influx of challenges in 2023, tech giant Google once again announced layoffs across many sectors in January 2024. Google has continually cut jobs since the start of 2023, when the company announced it was letting go of 12,000 employees.

The impact of layoffs and planned layoffs in Austin has remained unclear so far this year and Google has not commented on the matter.

Dell Technologies reduces workforce by 13,000

Another homegrown darling that has seen layoffs is Round Rock-based Dell Technologies. In the past year the company has reduced its workforce by 13,000 employees, amid cost-cutting measures.

In an end-of-year filing with the Securities and Exchange Commission, the Austin cornerstone reported it now has 120,000 global employees as of February 3, 2024, down from 133,000 employees in February 2023 — a decrease of nearly 10%.

Tesla lays off more than 10% of global workforce

In April Tesla announced it would be laying off more than 10% of its global workforce, an internal memo seen by Reuters showed, as it grapples with falling sales and an intensifying price war for electric vehicles.

The world's largest automaker by market value had 140,473 employees globally as of December 2023, its latest annual report shows. The memo did not say how many jobs would be affected.

Microsoft closes Arkane Studios

A WARN notice filed early this month detailed layoffs from Austin-based gaming company Arkane Studios, where 96 employees no longer have jobs.

The company, owned by tech and gaming giant Microsoft, is just one of many companies under Microsoft’s umbrella that are seeing layoffs.

Unity Technologies cuts 100 jobs in Austin

In January, video game software developer Unity announced it would be laying off about 1,800 people, or about 25% of its global workforce, in a January 8 regulatory filing. At the time, the company said the layoffs were part of its efforts to restructure and refocus on its core business to better position itself for long-term growth.

Unity cut nearly 100 people in the Austin area as the company, which has had a stable presence in the city, continues to slash a quarter of its global workforce.

Why are layoffs so abundant in the tech industry?

According to an NPR report, layoffs in the tech sector are actually fueling the soaring stock prices of various tech companies — which is giving them no incentive to stop.

Companies like Alphabet, Meta and Microsoft are all laying workers off while simultaneously seeing record-high stock prices — with Microsoft exceeding $3 trillion.

Moreover, factors like the emergence of AI technologies have caused a multitude of companies to reprioritize what staff is working on.

Reporting from Kara Carlson contributed to this article

This article originally appeared on Austin American-Statesman: Tech layoffs in Austin area are piling up. Here's a running list