Free food, nap rooms, wellness walks, unlimited vacation days—these were once the defining perks of working in tech. Along with six- and sometimes seven-figure salaries, tech employees were portrayed as the epitome of innovation and productivity. Companies invested in their well-being, their growth, and their ability to work without limits. And yet, many of the people I’ve spoken to in my market research tell a different story—one where these same perks masked inefficiency, a broken culture, and a false sense of security.
Over the past few months, I’ve been speaking to leaders at some of the largest global tech companies about what’s really happening behind the scenes. The layoffs we’re seeing today aren’t just a product of economic downturns or cost-cutting—they are exposing deep structural issues that have been years in the making.
I won’t name names or companies to respect their privacy, but these are high-level executives, decision-makers, and middle managers who’ve had to implement, witness or we themselves impacted by these layoffs firsthand. Their stories paint a picture of an industry undergoing a seismic shift.
Before we go further, let’s acknowledge something: Layoffs are devastating. No matter how they are spun, people losing their livelihoods overnight is painful. But to truly understand how we got here, we need to take a step back and look at the historical patterns that led us to this moment.
The Rise and Fall of DEI & The Culture Shift
A few years ago, the biggest discussions in tech were about Diversity, Equity, and Inclusion (DEI). There were leadership trainings, employee resource groups, and public commitments to making workplaces fairer and more inclusive. Companies positioned themselves as champions of social justice. It was about people-first, well-being, and psychological safety.
Fast forward to today, and suddenly Mark Zuckerberg is publicly talking about bringing back masculine energy. DEI budgets are being slashed, teams dedicated to inclusion are being cut, and the rhetoric has completely changed.
So what happened?
Did the focus on employee well-being turn into entitlement?
Were companies never fully committed to these values to begin with?
Or is this just another example of corporate survival mode, where priorities shift based on what investors and administrations in power want to hear?
The Arbitrary Nature of Early Layoffs in 2023
One executive I spoke to recalled the moment they were given a list of names and teams with a simple instruction: Cut 20%. They were new to the role, unfamiliar with most of the people on that list, and had to make decisions not based on individual contributions, but based on optics—who had shinier titles, who would make their trimmed organization look more streamlined.
In another case, a team that had consistently hit 90-120% of their revenue targets for five years found itself crippled after layoffs. Leadership decided to keep the ‘strategizers’ (often more senior, less hands-on) and cut many of the actual doers. The next year? Revenue achievement dropped to 60%—a catastrophic decline that could have been avoided.
A former senior manager at a major tech company shared how their company slashed entire teams based on 'an internal algorithm' that few people understood. Chances are it was more random and gut feeling based than a sophisticated algorithm that was top secret, this manager speculated. Decisions were made in closed-door meetings, often without context or justification beyond “this is what the numbers tell us.” The result was that high performers were let go, while some of the least productive employees remained simply because they were in the right org at the right time.
Problem 1: The Self-Perpetuating Bureaucratic Inefficiency
In many large companies, managerial success isn’t necessarily measured by impact—it’s measured by headcount and seniority. The bigger and the more senior the team, the more "valuable" the leader appears. This creates a perverse incentive where managers prioritize team expansion and hiring people at higher levels over actual results. Growth becomes the metric, not efficiency.
One executive described it as “team hoarding”—managers inflate their teams, justifying their existence by creating projects (sometimes meaningful, often not) that require more people. The logic here is: More people means the work must be important. The work itself, however, often takes a backseat.
This cycle feeds on itself. Managers secure budget and headcount, then scramble to find tasks to keep their teams occupied. The result is: Endless strategy docs, cross-functional alignment meetings, and low-stakes projects that exist solely to sustain the illusion of productivity. When performance reviews come around, the manager’s influence is measured by their organizational size, not necessarily by what their team has contributed.
If teams notice that leveling, promotions, and recognition are driven more by optics than meritocracy, high performers become demotivated. Instead of focusing on innovation and meaningful output, they are incentivized to play visibility games—prioritizing perception over performance.
Problem 2: The Reorg Anxiety
Then there’s the reorganization problem. In many tech companies, leadership loves to shake things up, especially when they first arrive or inherit a team—teams are shuffled, projects get reassigned, and reporting lines change overnight. Sometimes this is done in the name of efficiency. More often, it’s a political power move. A senior leader wants to consolidate control, so they pull teams under their umbrella. A VP needs to show they’re driving transformation, so they restructure an entire org. While the restructuring is happening or at least being anticipated (everyone knows when there is a new leader, there will be a shake-up) the productivity plummets, motivation sinks, as the people in the team are waiting around to see what happens next.
For employees, this creates chaos. One former sales lead told me: “I worked on 5-6 different Team Value decks in two years, trying to justify my team's value proposition, how they should be positioned and what skills they bring to the table. Not because they were not getting results, they were clearly adding value, you could tell from the sales metrics but because they kept getting re-orged and re-shuffled.”
At a certain point, people stop trying. They see the pattern and realize that if they wait long enough, their scope will likely get rejigged or their team will be moved. Why push for results if everything is temporary? This is how inefficiency and corporate inertia take over.
And so, the cycle repeats. Teams grow. Priorities shift. Reorgs happen. No one really wins—except for - maybe - the people who keep climbing the ladder, fueled by the illusion of productivity.
Problem 3: When Taking Care of Employees Turns into Entitlement
For years, tech companies prided themselves on prioritizing employee well-being. Work-life balance, psychological safety, and perks were the norm. Offices were stocked with kombucha, microkitchens overflowed with organic snacks, and employees were assured that their happiness was the company’s top priority.
But at what point did this turn into entitlement and complacency?
One of the most ridiculous examples I heard was about the shuttle debate. Employees working at a major tech company in Silicon Valley wanted to live in San Francisco for the lifestyle but hated the commute. The solution: They started demanding more shuttles between 10AM and 4PM because they couldn’t possibly leave before 10AM (too early!) or after 4PM (traffic!). This created a ridiculous situation where employees would:
Arrive at 11AM, work for an hour, then go to lunch.
Take a break, maybe hit the gym or a nap pod.
Attend a few meetings, then leave at 4PM to avoid rush hour.
Meanwhile, actual work wasn’t getting done. But if a manager pushed back, they were labeled as not supporting work-life balance. This kind of culture made it easy for employees to rest and vest, opt out of hard work, and demand accommodations that made no sense for business productivity.
And it wasn’t just about shuttles. In another case, an employee started a petition to switch to smaller oat milk cartons in the office microkitchens—not for sustainability reasons, but because they had an aversion to using the same carton that someone else also drank off of.
Then came The Great RTO Revolt.
After COVID, when companies started announcing return-to-office policies, some employees were furious. Many had moved to the suburbs (or farther) during remote work, assuming they’d never have to come back. Some flat-out refused, saying a return-to-office mandate was "a betrayal"—despite having signed contracts that specified their work location.
When perks become expectations rather than privileges, companies face real consequences:
Leaders are afraid to push back—no one wants to be the villain who takes away the kombucha or challenges work-from-home flexibility.
A culture of optionality emerges—people only do what they feel like doing, rather than what’s best for the business.
High performers get frustrated—the ones who do want to work hard feel like they’re carrying the weight of entitled colleagues.
At some point, taking care of employees turned into employees believing the company owed them everything—without recognizing the trade-offs.
Today's Reality: Further Layoffs and AI’s Role in Reshaping Tech
The tech industry is undergoing a reckoning. The lavish perks, the over-hiring, the unchecked headcount growth—it’s all coming to a head. The era of boundless opportunity and excess is being replaced with something far more uncertain: a future defined by mass layoffs, ruthless efficiency, and the growing dominance of AI.
The layoffs we’re seeing today aren’t just cost-cutting measures; they’re a structural correction. The inefficiencies, the inflated teams, the illusion of perpetual hypergrowth—all of it has caught up to the industry. And AI is accelerating the shift.
The Layoff Wave: Who’s Being Cut and Why?
Meta has initiated its first-ever performance-based mass layoffs, letting go of 3,700 employees deemed ‘low performers.’
Microsoft is terminating employees on the spot for performance reasons, with no severance.
Stack ranking is making a comeback under new names like ‘performance calibration.’
Middle management is on the chopping block. Companies are asking: Do we really need a layer of people whose job is mostly meetings and alignment docs?
Entire departments are vanishing overnight. DEI teams, employer branding, and internal learning and development orgs are getting slashed. Some were already on shaky ground—now, they’re among the first to go.
Performance expectations are tightening. Companies are getting more ruthless about labeling employees as low performers—even when the real issue is not the personal skillset but shifting priorities or misalignment with business needs.
AI is replacing roles faster than people realize. Many layoffs aren’t about budget cuts—they’re about AI automating work previously done by humans.
A senior executive at a tech firm told me, “We’re realizing that a lot of roles exist because people got used to a certain way of working. But AI can do it better, faster, and cheaper. The layoffs aren’t just centered around reducing costs — we are rethinking what work even needs to be done.”
In other words: This isn’t just about a temporary downturn. This is a full-scale restructuring of how companies operate.
The Rise of the AI Workforce
We’re already seeing the impact of AI-driven efficiency across tech (as well as other sectors):
Software engineers are being asked to code less, review AI-generated code more. The job is shifting from writing every line to auditing and improving machine-generated output.
Marketing teams are being trimmed down. Generative AI is handling content creation, ad copywriting, and even some aspects of campaign strategy.
Customer support is shrinking. AI chatbots and automated workflows are replacing entire tiers of human support agents.
AI-powered data analysis is cutting jobs in finance, sales ops, and even HR. Companies no longer need entire teams to pull and analyze data when AI tools can generate real-time insights in seconds.
One senior AI researcher described it to me bluntly: “Every company is realizing they can do more with fewer people. And AI doesn’t ask for promotions, benefits, or stock options.”
For those who were let go—or those fearing they’re next—the message is clear: Adapt, or risk being left behind.
Where Do We Go From Here? The Future of Work in Tech
The industry has changed. The job market has changed. The way companies think about talent, performance, and innovation has fundamentally shifted—and it’s not going back to the way it was.
So what does that mean for you?
1️⃣ Work is Not Your Family—It’s a Business
The truth is, work is a transaction—and that’s not necessarily a bad thing. Companies hire you to deliver results. You work there because it benefits you. That’s it. The best thing you can do is approach your career the same way businesses approach their bottom line: strategically, with a clear value proposition.
2️⃣ Entitlement is Real—And It Will Get You Left Behind
The solution lies in prioritizing authenticity, accountability, and surrounding yourself with A-players. No more hiding behind vague “impact” statements in performance reviews—real results matter. The easiest way to stay competitive is to work with people who push you to be better, rather than settling into mediocrity. And most importantly, accountability is everything—don’t wait for a company to define your goals. Define them yourself, own your results, and if you aren’t growing, take action to fix it.
3️⃣ Complacency Kills Careers—And Companies
In today's shifting job market, stagnation is a career killer—if you’re not growing, you’re falling behind. The fastest way to get laid off is to assume your job is safe. It’s not. AI, automation, and evolving skill sets are reshaping industries, and those who fail to adapt will be left behind. Success now depends on real impact, not just activity—endless meetings and visibility games no longer cut it. Reinvention isn’t optional; the people who thrive will be the ones who continuously learn, evolve, and push forward with tangible results.
4️⃣ Don’t Play Games With People
One of the worst things to come out of recent layoffs was the public branding of people as ‘low performers.’ No one benefits from humiliating workers. Not the company. Not the industry. Not the people trying to rebuild their careers.
Layoffs are often about business decisions, not personal failure. Were some people underperforming? Sure. But many were simply in the wrong org, at the wrong time, working on projects that leadership no longer prioritized.
If you’re a leader: Treat people with dignity. No one will forget how you handled layoffs.
If you were laid off: Ignore the noise. You are not your last job title, your last paycheck, or your last employer’s opinion of you.
5️⃣ People-First Still Matters—Even in an AI World
AI is transforming the workplace, but people remain the foundation of everything. The companies that thrive will be the ones that merge technology with human talent, not those that try to replace people entirely. AI is a tool, not a substitute—it can enhance productivity, but it can’t replicate critical thinking, leadership, or human connection. The ability to build relationships, drive strategy, and create culture is more valuable than ever. Tech still needs visionaries—no AI can predict the next big idea, foster innovation, or inspire a team. Companies that forget this will struggle, while those that empower both people and technology will dominate.
6️⃣ If You Were Impacted by Layoffs—This Could Be Your Best Opportunity Yet
It might not feel like it now, but getting laid off could be the best thing that happens to you. Maybe your job wasn’t the right fit. Maybe you weren’t being challenged. Maybe the industry is shifting in ways that don’t align with your strengths. Now, you have the chance to redefine your next step. Ask yourself:
Were you really a low performer, or were you just in the wrong environment?
Do you need to upskill, or do you need a better leadership team?
Is it time to pivot into something new—or double down on what you’re already great at?
The right job, leadership, and expectations make all the difference.
7️⃣ There’s No One-Size-Fits-All Approach to Careers
The old playbook is dead. The idea that success follows a single, linear path—one career, one industry, one predictable climb up the corporate ladder—is outdated. The future belongs to those who are adaptable, proactive, and unafraid to forge their own way. Some will thrive in structured corporate environments, while others will excel in fast-moving startups. Some will pivot to entrepreneurship, while others will carve out AI-driven roles. Some will double down on leadership, while others will contribute in ways that don’t even exist yet. The key is figuring out what works for you—not what your last company valued, not what industry trends dictate, and not what others think is the “right” career move.
If you have not been laid off yourself but you no longer like the vibes, take control. Make a chance.
Success is about alignment—finding the path that matches your strengths, values, and long-term vision.
The Future of Work: Play to Win, Not to Survive
The people who will thrive in this new era aren’t the ones who resist change. They’re the ones who embrace it.
Treat your career like a business.
Stay ahead of the curve—especially with AI.
If you no longer like the game, change the game.
If you got laid off, use it as an opportunity to level up.
The rules of work have changed. The question is—are you ready to change with them?
Hi! I'm Merve. 👋 I help leaders build high performing teams, amplify their business impact, and advance their careers.
Here are five ways you can connect with me:
Book a 1:1 Coaching Session: Tailored to your individual goals, I offer in-depth guidance, a focused strategy, and results-oriented accountability to help you navigate your professional and personal challenges for meaningful progress.
Join Signature Leadership Programs: Designed for corporate leaders and business owners at all stages of the leadership journey, these programs blend 1:1 coaching with group workshops and training, equipping you to grow your career, earnings, and business success.
Subscribe to My FREE Monthly Newsletter: Stay updated with the latest in leadership and business with insights and musings delivered directly to your inbox.
Access FREE Worksheets for Leaders: Visit my website to access and download worksheets and workbooks that provide practical exercises for enhancing self-awareness, self-reflection, and fostering positive change in your leadership and team dynamics.
Follow me on LinkedIn: Connect with me on LinkedIn for daily updates, thought-provoking articles, and a community of like-minded professionals committed to continuous growth and leadership excellence. Join the conversation and stay inspired on your leadership journey.