Page 765 - ISC PROCEEDINGS 21.4

and the evolving nature of work in the digital age. High-profile cases such as Meta's
decision to eliminate 13% of its workforce—exceeding 11,000 employees—illustrate the
scale and severity of this correction phase (Gompers et al., 2020). While previous
research has examined individual economic cycles or specific industry segments, few
studies have systematically analyzed the comprehensive scope of tech-sector workforce
reductions across this particular timeframe. The period from March 2020, when COVID-19
was declared a pandemic, through April 2025 encompasses multiple macroeconomic
shocks: the initial pandemic disruption, subsequent monetary policy tightening by the
Federal Reserve and other central banks, and the emergence of transformative
technologies such as generative artificial intelligence (Bernanke & Blinder, 1992).
This research addresses a critical gap in the literature by providing systematic
empirical analysis of global tech layoffs using comprehensive data spanning 2,863
companies and over 808,000 affected employees, tracked through major business media
outlets including Bloomberg, TechCrunch, The New York Times, and San Francisco
Business Times. The study employs descriptive statistical methods combined with
advanced Python-based visualization techniques to uncover patterns that traditional
analyses might overlook (Lee et al., 1997). By examining temporal trends, geographic
distributions, industry-specific impacts, and company-stage vulnerabilities, this research
contributes novel insights into how technological sectors respond to combined pressures
of economic correction and strategic realignment, extending the theoretical frameworks
of creative destruction proposed by Schumpeter (1942) into the contemporary digital
economy context.
The findings hold particular relevance for Sustainable Development Goals,
specifically SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation,
and Infrastructure). Understanding the patterns and drivers of large-scale workforce
reductions enables more informed policy responses, better corporate workforce planning,
and improved support mechanisms for affected workers (Glaeser & Gottlieb, 2009).
Furthermore, the methodology demonstrated here offers a replicable framework for
analyzing labor market disruptions in other sectors or future economic cycles. The
research examines whether current layoff patterns represent temporary cyclical
corrections or signal more fundamental structural shifts in how technology companies
approach workforce management, capital allocation, and growth strategies (Dixit &
Pindyck, 1994).
2. Literature review
2.1. Theoretical foundations: economic cycles and employment
Classical economic theory has long recognized the cyclical nature of employment,
with Schumpeter's (1942) concept of “creative destruction” providing a foundational
understanding of how technological advancement simultaneously creates and destroys
jobs. Schumpeter argued that capitalism inherently involves continuous industrial
mutation that revolutionizes economic structure from within, destroying the old structure
and creating a new one. However, the technology sector's unique characteristics—rapid
innovation cycles, high capital intensity, network effects, and winner-take-all dynamics—
create employment dynamics that diverge from traditional manufacturing or service
industries examined in earlier studies (Autor et al., 2003). The current wave of tech
layoffs challenges assumptions about the sector's immunity to conventional business
cycles and raises questions about whether digital platforms and software companies face
different employment elasticities than their industrial-era predecessors.

764