More trouble in tech: A spate of new layoffs hits Silicon Valley

After a lull in which it seemed like the worst of the layoffs had passed for tech workers, a fresh wave of job cuts is now upon Silicon Valley.

Major companies like LinkedIn, Qualcomm, and Nokia announced substantial headcount slashes this month, pointing to factors like weakened revenues and ongoing cost-cutting drives.

The tech industry job losses are still far from the peaks they reached earlier this year, when tech giants dropped tens of thousands of positions combined. But the new spate of notable names making relatively deep cuts signals the bleeding isn’t quite over, even after analysts at Bernstein Research declared in August that the tech jobs recession was done.

Here’s a roundup of this month’s tech job cuts:

LinkedIn: The Microsoft-owned jobs site will cut 668 roles from its engineering, product, talent, and finance teams in its third round of layoffs this year, the company said this week. The company enacted an initial round of layoffs in February, The Information reported, followed by 716 job cuts in May.

The change comes as the site has been adding more generative AI tools, thanks to resources from its parent company.

“While we are adapting our organizational structures and streamlining our decision making, we are continuing to invest in strategic priorities for our future and to ensure we continue to deliver value for our members and customers,” the company said in its announcement.

Qualcomm: The chip giant said it would cut 1,258 roles, or about 2.5% of its workforce, starting in December, according to filings with the state of California. The layoffs will affect several departments within Qualcomm’s San Diego and Santa Clara offices, including engineering, legal counsel, and human resources, CNN reported.

The company had warned of looming restructuring in a recent earnings filing, where it cited “continued uncertainty in the macroeconomic and demand environment.”

Nokia: The Finnish telecom manufacturer said it would cut up to 14,000 jobs, or 16% of its workforce, by the end of 2026, in a major restructuring spurred by “market uncertainty.”

“Resetting the cost-base is a necessary step to adjust to market uncertainty and to secure our long-term profitability and competitiveness,” Nokia President and CEO Pekka Lundmark said in a statement. “We remain confident about opportunities ahead of us.”

Stack Overflow: The coding help forum said it would lay off 28% of its staff amid a big push to cut costs. The site has faced challenges from a new wave of AI-based coding assistance, and the company recently debuted its own OverflowAI in a bid to compete with the likes of ChatGPT.

Bandcamp: Music platform Bandcamp reportedly laid off around half of its employees after Epic Games sold it to music licensing company Songtradr, according to SFGate, which later reported the layoffs “disproportionately hit union leaders.” Songtradr had previously noted that Bandcamp would “require some adjustments” in headcount to “ensure a sustainable and healthy company.”