It looks like the tech industry is already experiencing a significant number of layoffs in the first few days of the new year, with almost 17,000 employees across nine companies affected, according to data from Layoffs.fyi (2022). Leading the way are Amazon and Salesforce, but with companies continuing to adjust to market conditions in an effort to maximize profits, it is likely that we will see more tech layoffs throughout 2023 (Layoffs.fyi, 2022). In fact, almost 154,000 employees across 1,018 employers were affected by tech layoffs in 2022 (Layoffs.fyi).
However, it's not just about the numbers; it's about the impact these layoffs have on individuals, particularly those who are members of underrepresented groups, that have been the focus of DEI efforts, already face barriers to entry in the tech industry: women and people of color. According to the National Center for Women & Information Technology (NCWIT, 2021), just 26% of tech positions are held by women, with only 3% being held by black women, 7% by Asian women, and 2% by Latinas. The Bureau of Labor Statistics (BLS, n.d.) also reports that 29.1% of computer systems design and related services professionals are women, 23.7% are Asian, 8.1% are Hispanic or Latino, and 7.0% are Black or African American. The Equal Employment Opportunity Commission (EEOC, n.d.) has identified several concerning trends related to diversity in the tech industry, including a decrease in the representation of African Americans, Hispanics, and women.
But it's not just about representation; it's also about retention. Research conducted by the Harvard Business Review (HBR, 2020) found “that when organizations cut positions rather than evaluating individual workers, there is an immediate 9%-22% drop in the proportion of White and Hispanic women and Black, Hispanic, and Asian men on management teams. Companies that adopt a "last hired, first fired" approach to layoffs also lose nearly 19% of their share of white women in management and 14% of their share of Asian men” (HBR, 2020).
Tech layoffs may be necessary for financial reasons, but it’s important to recognize that they disproportionately impact already disadvantaged groups. For those making the decision in these reduction in force efforts, consider the impact of layoffs on diversity and inclusion and take a more strategic and nuanced approach.
Sources:
By the numbers. NCWIT.org. (2021.). Retrieved January 5, 2023, from https://ncwit.org/resource/bythenumbers/
Diversity in high tech. US EEOC. (n.d.). Retrieved January 5, 2023, from https://www.eeoc.gov/special-report/diversity-high-tech
How "neutral" layoffs disproportionately affect women and minorities. Harvard Business Review. (2020, September 14). Retrieved January 5, 2023, from https://hbr.org/2016/07/how-neutral-layoffs-disproportionately-affect-women-and-minorities
Tech layoff Tracker and startup layoff lists. Layoffs.fyi. (2022, December 4). Retrieved January 5, 2023, from https://layoffs.fyi/
U.S. Bureau of Labor Statistics. (n.d.). Employed persons by detailed industry, sex, race, and Hispanic or Latino ethnicity. U.S. Bureau of Labor Statistics. Retrieved January 5, 2023, from https://www.bls.gov/cps/cpsaat18.htm
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