Tech Industry Layoffs: Complete Guide for Software Engineers & Tech Workers

The tech industry has experienced unprecedented layoffs since 2022, with hundreds of thousands of workers affected at companies ranging from startups to tech giants. Whether you're at a FAANG company, a unicorn startup, or an enterprise software firm, this guide covers the unique considerations tech workers face during layoffs.

Current Tech Layoff Landscape

Why Tech Layoffs Are Happening

Macro factors:

• Post-pandemic correction from over-hiring
• Rising interest rates affecting growth companies
• Investor shift from growth to profitability
• Economic uncertainty reducing tech spending
• AI automation changing workforce needs

Company-specific factors:

• Failed product bets
• Overhiring during 2020-2021
• Restructuring after acquisitions
• Pivot to AI requiring different skills
• Cost-cutting pressure from investors

Most Affected Roles

Higher risk:

• Recruiters and HR
• Marketing and communications
• Program and project managers
• Some product management roles
• Middle management
• Roles in "nice to have" products

More protected (generally):

• Revenue-generating engineers
• AI/ML specialists
• Security engineers
• Core infrastructure
• Customer-facing roles with relationships

Immediate Steps for Tech Workers

Stock Options and RSUs

Stock options (ISOs and NSOs):

• Check your vesting schedule immediately
• Understand your post-termination exercise window (typically 90 days for ISOs)
• Calculate exercise costs and tax implications
• Consider early exercise if you have NSOs and believe in the company
• ISOs may convert to NSOs after 90 days post-termination

RSUs:

• Unvested RSUs are typically forfeited
• Check if severance includes accelerated vesting
• Understand tax implications of any vested shares
• Review if you're in a blackout period

Key questions to ask:

• What happens to my unvested equity?
• Is accelerated vesting part of the severance?
• What's my exercise window for options?
• Will the company buy back vested shares (private companies)?

Visa Considerations (H-1B, L-1, O-1)

H-1B grace period:

• You have 60 days OR until your I-94 expiration (whichever is shorter)
• This is a one-time 60-day period per authorized stay
• Use this time to find a new H-1B sponsor or change status

Immediate actions:

• Start job searching immediately (60 days goes fast)
• Consider filing for B-1/B-2 visitor status as backup
• Explore O-1 visa if you qualify
• Contact an immigration attorney
• Consider employers known for fast visa processing

Options to explore:

• Transfer to new employer (need job offer)
• Change to B-1/B-2 (tourist) status temporarily
• Change to F-1 (student) if pursuing education
• Apply for O-1 if you have extraordinary ability
• Return home and apply for new H-1B

Companies known for quick H-1B transfers: Many large tech companies can process transfers within 2-4 weeks. Prioritize employers with established immigration departments.

FAANG and Big Tech Severance

Typical FAANG severance packages:

• 2-4 months base salary
• Pro-rated bonus (sometimes)
• COBRA subsidy for 2-6 months
• Accelerated vesting (varies widely)
• Outplacement services
• Extended laptop/equipment retention

What's negotiable:

• Length of severance pay
• Equity acceleration
• COBRA coverage duration
• Outplacement services
• Reference letter language
• Equipment retention
• Garden leave vs. immediate termination

Startup Considerations

Different challenges:

• May have less (or no) severance
• WARN Act may not apply (under 100 employees)
• Stock options may be worthless
• Company may be in financial distress
• May have difficulty getting references if company folds

Stock option decisions:

• Evaluate company's actual prospects
• Consider the 409A valuation vs. exercise price
• Calculate total cost to exercise
• Understand tax implications (ISO vs NSO, AMT)
• Don't exercise if company is likely worthless

Tech-Specific Job Search

Where Tech Jobs Are

Strongest markets:

• AI and machine learning
• Cybersecurity
• Cloud infrastructure
• DevOps and platform engineering
• Data engineering
• Healthcare tech
• Climate tech
• Defense tech

Geographic considerations:

• Remote roles are more competitive
• Some companies returning to office (may have less competition)
• Secondary tech hubs growing (Austin, Miami, Denver)
• Consider geographic arbitrage

Technical Interview Preparation

While employed, you should have:

• Practiced LeetCode/HackerRank regularly
• Reviewed system design fundamentals
• Kept skills current

After layoff:

• Dedicate significant time to interview prep
• Focus on your target companies' interview styles
• Practice behavioral questions (layoff explanation)
• Update knowledge of latest technologies
• Build or refresh portfolio projects

Resources:

• LeetCode, HackerRank, AlgoExpert
• "Designing Data-Intensive Applications"
• "System Design Interview" by Alex Xu
• Pramp for mock interviews
• Blind for company-specific insights

Resume and LinkedIn

Tech-specific tips:

• Quantify impact (performance improvements, scale, revenue)
• List specific technologies and versions
• Include links to GitHub, portfolio, blog
• Keep it to 1-2 pages even for senior roles
• Remove outdated technologies

Addressing the layoff:

• "Position eliminated due to company restructuring"
• Don't hide gaps—they're common now
• Focus on what you accomplished
• Be ready to discuss it naturally in interviews

Networking in Tech

High-value activities:

• Reach out to former colleagues who landed
• Attend local tech meetups
• Contribute to open source
• Engage on Twitter/X tech communities
• Post thoughtfully on LinkedIn
• Join relevant Discord/Slack communities

Recruiters:

• Respond to recruiters even if not interested (build relationships)
• Be clear about your requirements
• Ask about companies before applying
• Get multiple offers if possible for negotiation leverage

Compensation Negotiation After Layoff

Don't Accept Lower Offers

You're not desperate:

• The market is competitive but you have skills
• Companies still need talent
• Accepting too low affects long-term earnings
• Multiple offers give leverage

What to negotiate:

• Base salary
• Signing bonus (especially if leaving unvested equity)
• RSU grants and vesting schedule
• Annual bonus target
• Remote work flexibility
• Start date
• Title and level

Equity Evaluation

For public companies:

• RSUs are straightforward—calculate expected value
• Consider vesting schedule (4-year with 1-year cliff typical)
• Factor in stock price volatility

For startups:

• Options are highly risky
• Consider stage (seed vs. Series D)
• Evaluate the cap table and preferences
• Ask about 409A valuation
• Most options end up worthless—don't over-value

Mental Health Considerations

Tech Industry Specifics

Common challenges:

• Identity tied to company brand
• Comparison to successful peers
• Social media amplification of others' success
• Imposter syndrome when job searching
• Burnout from interview process

Healthy approaches:

• Take a break before intense job searching
• Limit LinkedIn/Blind doom-scrolling
• Connect with others going through the same thing
• Remember: mass layoffs are about business, not you
• Consider therapy—many tech companies offered mental health benefits that continue through COBRA

Using the Transition Well

Opportunities:

• Learn new skills (AI/ML, new languages)
• Contribute to open source
• Build side projects
• Consider different types of roles
• Explore interests outside tech
• Rest if you were burned out

Alternative Paths

Consulting and Contracting

Advantages:

• Often faster to find work
• May pay more hourly
• Good way to try companies
• Flexibility during search

Considerations:

• No benefits (or expensive benefits)
• Less job security
• Need to manage taxes
• May be harder to convert to full-time

Where to find contracts:

• Toptal, Turing (vetted freelance)
• Direct company contractor pools
• Staffing agencies
• Your network

Starting Your Own Thing

When it makes sense:

• You have runway (severance + savings)
• You have a specific idea
• You have relevant experience
• You're comfortable with uncertainty

When to be cautious:

• Starting just because you can't find a job
• No clear customer or problem
• Financial pressure to succeed quickly
• Haven't validated the idea

Non-Tech Industries

Where tech skills transfer:

• Finance (fintech, trading systems)
• Healthcare (health tech)
• Government (GovTech, defense)
• Education (EdTech)
• Retail (e-commerce, logistics)

Benefits of non-tech:

• Often more stable
• Less intense interview process
• May value your experience more
• Different pace and culture

Resources for Tech Workers

Job Boards

Tech-specific:

• levels.fyi (salary data)
• Blind (anonymous company insights)
• Wellfound (AngelList—startups)
• Hired (tech-focused)
• Dice (tech jobs)
• Built In (local tech)
• LinkedIn (filter for tech)

For specific roles:

• AI/ML: ai-jobs.net
• Remote: We Work Remotely, Remote OK
• Climate: ClimateBase
• Startups: YC Jobs, Wellfound

Communities

Support and networking:

• Layoffs.fyi (tracking and community)
• Blind (anonymous discussions)
• Reddit: r/cscareerquestions, r/experienceddevs
• Local tech Slack communities
• Discord servers for specific technologies

Immigration Resources

• USCIS.gov (official information)
• Immigration attorneys (consultations often free)
• Your company's immigration support (may continue briefly)
• Boundless, SimpleCitizen (DIY tools)

Company-Specific Guides

FAANG/MAANG Layoffs

Meta/Facebook:

• Typically generous severance (4+ months)
• RSU acceleration possible
• Strong alumni network
• Well-known for "landing well"

Google/Alphabet:

• Severance typically 16 weeks + 2 weeks per year
• COBRA support
• Career services support
• Historically very generous

Amazon:

• Severance varies more by level
• May include job search support
• Large alumni network
• Many boomerangs

Apple:

• Historically fewer layoffs
• Severance information less public
• Strong brand helps job search

Microsoft:

• Historically generous severance
• Good alumni network
• Many internal transfer opportunities

Netflix:

• Known for generous severance (4-9 months)
• "Keeper test" culture means less surprise
• Strong brand recognition

Startup Layoffs

Well-funded startups:

• Severance depends on runway
• May offer to accelerate option vesting
• Get reference letters before company changes

Struggling startups:

• May have minimal severance
• Options likely worthless
• Company may fold—document everything now
• Get paid vacation balance if possible

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Key Takeaways

1. Act fast on visa issues — 60 days is not much time
2. Understand your equity — Know your options before termination
3. Negotiate severance — Tech packages are often negotiable
4. Don't panic-accept — The market still values good tech talent
5. Interview prep is a job — Dedicate real time to it
6. Network actively — Most tech jobs come through connections
7. Consider all paths — Contracting, non-tech, startups all have merit
8. Take care of yourself — Tech layoffs are emotionally challenging

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Related Resources:

• First 24 Hours After Layoff →
• Severance Negotiation Guide →
• Visa and Immigration After Layoff →
• 401(k) Options →
• Unemployment Benefits →