SAN JOSE — The massive tech layoffs that have jolted the Bay Area job market have primarily affected non-tech employees of the companies that have 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 CBRE report for the first time examined and compared wages in key tech regions. The Bay Area is paying the highest wages for 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.
“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 Shephard, 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,” Shephard said.
Plus, signs have emerged that the Bay Area’s ever-restless technology industry is taking the initial steps to harvest more promising fields.
“We are seeing new start-up companies emerge, a potential sign that we are entering a new cycle,” Shephard said. “Recruiting and retaining tech talent remains a priority for many companies, in addition to creating an attractive office experience for employees.”
Tech companies are thought to be redeploying resources already, CBRE’s report indicated.
“Artificial intelligence has seen a surge in venture capital funding, a positive indicator for the future growth of tech,” said Colin Yasukochi, executive director of CBRE’s tech insights center. “Artificial intelligence has seen a surge in venture capital funding, a positive indicator for the future growth of tech.”