Why are tech layoffs happening now?

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Why are tech companies laying people off in the thousands?
Photo: Peter Dasilva (Reuters)

The Weekend Brief offers analysis and insights on one big news item of the week, delivered only to Quartz members.

Despite 2023 being such a bumper year for tech companies, they’ve laid off more than 24,000 employees in just the first month of 2024, ranging from the smallest firms to the giants of Silicon Valley.

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There are at least three factors behind these massive layoffs: the adoption of artificial intelligence, a quest to increase earnings, and cutting costs ahead of a merger or a sale.

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The Weekend Brief will take a close look at the deep cuts since the pandemic and how these companies are justifying layoffs in an era of soaring valuations.

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