The tech sector is continuing its pause and evaluation of the most costly component of their businesses: employees. As a result, companies are laying off. Whether it’s due to a correction after years of inflated growth, fears of recession or coronavirus lockdowns waning, a shift to more operational efficiency, or the desire to save on taxes, big-name tech companies have been reducing headcount in droves.

The layoffs range from significant reductions to a handful of jobs. Often, the first positions to go are non-essential roles that can be handled by existing teams or contractors (like marketing, HR, or admin). Then comes low performers or those who don’t meet expectations, and finally, departments facing restructuring. This includes engineering, product development, or other areas requiring specialized talent.

Some companies are also adjusting their hiring models or shifting towards emerging technologies, such as AI. For example, a reduction of 14,000 roles by Tesla was part of a larger plan to move toward a more gig-worker model. And biotech company Exscientia cut 25% of its workforce while doubling down on AI-driven drug discovery.

These changes in the workforce can impact not only those who lose their jobs but also their families and friends. However, the job market outside of tech is strong and many of those laid-off will be able to find new roles. Those with in-demand skills will find the most success, and should consider moving to industries that require their expertise. Alternatively, some tech workers may even decide to retrain for other industries and start fresh.