Seattle’s once-thriving technology sector is now grappling with a wave of corporate cutbacks and economic unease. While clouds are a common sight in the Pacific Northwest, the current atmosphere of financial instability casts a darker shadow over the region’s economy.
Recent workforce reductions at major local employers signal a shift from rapid expansion to contraction. Amazon is eliminating an additional 16,000 corporate roles, bringing its total layoffs since October to 30,000. The company is also closing all Fresh and Go grocery locations. Meta is reducing staff by hundreds in its Reality Labs unit, which has significant operations in the area. Expedia Group is cutting more than 160 positions at its Seattle headquarters.
The situation has prompted discussions about whether Seattle is entering a tech-driven recession. This week’s episode of KUOW’s “Booming” podcast leaned more toward pessimism, examining Amazon’s strategy of “right-sizing,” the unwinding of pandemic-era hiring surges, and the growing influence of artificial intelligence on workforce decisions.
KUOW noted that the Seattle metropolitan area experienced a net loss of 13,000 jobs in the past year—starkly contrasting with typical annual gains of around 40,000. Only the pandemic year of 2020, the Great Recession in 2009, and the Dot-Com crash in 2001 were worse.
Joe Nguyen, the newly appointed president and CEO of the Seattle Metropolitan Chamber of Commerce, expressed concern in a KIRO 7 report: “I am very nervous about what’s happening.” Jeff Shulman, chair of the University of Washington’s Marketing and International Business Department, described the current climate as “the scariest time economically for the Seattle region since the Great Recession.”
For displaced workers, the job market presents further challenges. Not only are thousands of tech professionals entering the labor pool, but job listings in tech-related fields remain significantly below pre-pandemic levels, according to December data from GeekWire.
Despite the downturn, some leaders remain cautiously optimistic. Jon Scholes, president and CEO of Downtown Seattle Association, stated: “We hope this pain is short-term. Betting against Seattle long-term would be unwise—the region’s talent base and core strengths remain strong.”
— news from GeekWire
— News Original —
Tech boom turns to gloom in Seattle as economic fears swirl amid layoffs
A cloud hanging over Seattle is usually a good thing, if you’re here for the rain, or if you work in that aspect of the tech industry. But the cloud of economic uncertainty is a less welcome occurrence. n nThe tech boom is showing more signs of tech gloom this week following layoffs at some of the region’s biggest employers. n nAmazon is laying off another 16,000 corporate employees, bringing the total to 30,000 since October. The company is also shuttering all of its Fresh and Go grocery stores. n nMeta is cutting hundreds of workers in its Reality Labs division, with roots in the region. n nExpedia Group is slashing more than 160 jobs at its Seattle HQ. n nIs Seattle facing a tech recession? That was the question on KUOW’s “Booming” podcast that sounded more like dooming this week as it dug into Amazon’s “right-sizing,” elimination of pandemic-fueled corporate “bloat,” and what role AI is playing in the company’s largest-ever reduction in force. n nKUOW also reported that the Seattle region had a net loss of 13,000 jobs last year, noting that in a normal year, Seattle has a net gain of about 40,000 jobs. Which years were (way) worse? The pandemic (2020), the Great Recession (2009) and the Dot-Com bust (2001). n n“I am very nervous about what’s happening,” Joe Nguyen, the new president and CEO of the Seattle Metropolitan Chamber of Commerce, told KIRO 7 in a report about job losses. Jeff Shulman, the chair of the University of Washington’s Marketing and International Business Department added: “This is kind of the scariest time economically for the Seattle region since the Great Recession in 2009.” n nFor those now facing the prospect of job hunting, the outlook may remain scary. Not only is the market being flooded with thousands of laid off tech workers, tech-related job postings remain stuck well below pre-pandemic levels in Seattle, as GeekWire reported in December. n nAt least one official always manages to find the silver lining in cloudy Seattle. n n“We hope this pain is short-term,” Downtown Seattle President and CEO Jon Scholes said this week. “It would be unwise to bet against Seattle in the long run — the talent pool and fundamental assets are in our favor.”