The Bay Area's golden age of tech may be losing its luster. While other parts of the country dealt with massive job cuts in 2023, the Silicon Valley region appears to have been the most severely affected. A deep wave of job losses in the tech industry has not only left many scrambling to find new jobs, but also resulted in significant salary cuts for those who kept their jobs. This came after a period of explosive salary growth early in the pandemic, followed by relatively modest increases in 2022. Now, a study by advocacy group Women Impact Tech shows that the average tech industry salary will decrease by 12.1% in 2023.
Layoffs surge in Bay Area tech industry, leading to pay cuts
Contributing to this condition is the fact that we live in economically unstable and precarious times. Hypervigilance and fear of layoffs and pay cuts are ever-present in all sectors. The climate crisis, rising costs of living, and lack of physical and psychological safety people face due to global events are increasing our sense of emotional exhaustion and impacting our overall sense of optimism. (StockPic) {{^userSubscribed}} {{/userSubscribed}} {{^userSubscribed}} {{/userSubscribed}}
Large tech companies like Google, Microsoft, and Tesla are experiencing major changes as they continue to aggressively cut staff to cut costs. A new report finds that declining average salaries at tech companies have led to “annual pay slashed from $207,000 to $182,000,” reports Mercury News. The Bay Area's golden age of tech may not be as glorious as it once was. According to WIT data, Bay Area employees experienced the largest year-over-year salary decline at 15.25%, despite tech companies having the highest average salaries in the nation.
Get ready to watch the final stage of the World Cup only on Crickit. Anytime, anywhere. Enjoy now!
Related article: Nevada judge refuses to release former gang leader ahead of trial for 1996 Tupac Shakur murder
A surge in layoffs is the main reason for pay cuts
{{^userSubscribed}} {{/userSubscribed}} {{^userSubscribed}} {{/userSubscribed}}
According to WIT researchers, their study strongly suggests that the surge in layoffs is the main cause of the nationwide decline in compensation. Moreover, the study highlights that among US tech employees, those with less than six years of tenure face an average 15% pay cut in 2023, while more experienced employees will see smaller cuts. Moreover, women, who saw faster earnings growth compared to men between 2019 and 2022, saw a larger decline in earnings over the past year.
Salaries for job-changers fall by 26%
“Even in the Bay Area, we kept seeing people take those jobs so quickly that we called it the 'Great Restructuring,'” said SFGATE WIT President Paula Ratliff. “The jobs were still there, they just weren't as high-paying as people were paying right after the pandemic,” she continued.
{{^userSubscribed}} {{/userSubscribed}} {{^userSubscribed}} {{/userSubscribed}}
Also Read: Paris Hilton Says She Was Sexually Abuse, Dragged and Thrown by Utah School Staff in Congressional Testimony
The survey noted a significant 26% drop in average income for those who changed jobs in 2023. Meanwhile, there was no change in salary for those who decided to stay in their current role. WIT found that “project and product managers, and basic software engineers” saw a larger drop in salary compared to “data, artificial intelligence and machine learning engineers.”
Get the latest on World News, US News, Hollywood News, Anime and top news from around the world. News / World News / Bay Area tech sector faces surge in layoffs and pay cuts: “Workers with less than 6 years of tenure and women…”
Source link
