Bay Area tech job cuts primarily hit non-tech workers: new report


SAN JOSE — The massive tech layoffs that have jolted […]

SAN JOSE — The massive tech layoffs that have jolted the Bay Area job market have primarily affected non-tech employees of the companies that orchestrated the local job cuts, a new report released Tuesday states.

The new CBRE report — which determined that the Bay Area is the nation’s top region for tech talent — offers a fresh look at the nature of the tech layoffs that have haunted the Bay Area economy for more than 18 months.

“Even as the tech sector’s resilience was tested in 2022, the (Bay Area) region continues to lead with the largest tech talent labor pool and highest number of tech roles of any U.S. market,” stated the new “Scoring Tech Talent” report from CBRE, a commercial real estate firm.

The Steve Jobs Theater, foreground, in the Apple Park campus in Cupertino, California, on Thursday, September 7, 2017. (LiPo Ching/Staff Archives)
Apple Park complex in Cupertino that is the headquarters of Apple, seen in the upper section of the image. The Steve Jobs Theater is in the lower right. (LiPo Ching/BANG Archives)

The CBRE report for the first time examined and compared wages in key tech regions. The Bay Area is the location for the nation’s highest-paid tech workers.

In 2021, annual tech wages averaged $185,425 in the Bay Area, $172,009 in Seattle and $121,794 in Boston, CBRE determined.

Tucked away in the new report was an overall assessment of the nature of the tech industry layoffs that have occurred in the Bay Area, a bout of job cuts that began at the outset of 2022.

Visitors line up to take pictures in front of a company sign at the Meta campus at 1 Hacker Way on Wednesday, Nov. 9, 2022, in Menlo Park, Calif. (Aric Crabb/Bay Area News Group)
People stand in front of a sign with the Meta Platforms logo on Hacker Way in Menlo Park. (Aric Crabb/Bay Area News Group)

“Many Bay Area tech employers slowed hiring and made staff reductions, but most layoffs are affecting non-tech roles like marketing, finance and recruiting,” said Chris Shepherd, an executive vice president in CBRE’s tech and media practice.

From January 2022 through mid-July 2023, a period of slightly more than 18 months, tech companies have revealed plans to chop more than 26,000 jobs in the Bay Area.

Despite the massive nature of the job cuts, tech companies appear to be using scalpels rather than butcher knives to trim their workforces and reallocate employees.

“Many companies continue to hold on to their engineering talent,” Shepherd said.

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