Why the tech sector has suffered massive layoffs

Tencent’s Riot Games (TCEHY, 0700.HK) announced it will lay off 11% of its staff, about 530 employees. The company joins a list of tech companies that have announced layoffs, bringing the total number to just short of 11,000 in 2024, according to Layoffs.fyi. Layoffs.fyi Creator Roger Lee joins Yahoo Finance to give insight into the recent round of layoffs in the tech sector and what it could mean for the broader labor market. “A lot of the recent layoffs are still about tech companies trying to overcorrect for their overhiring during the pandemic,” Lee says. “Given that the high interest rate environment and the tech downturn have both lasted longer than initially expected, companies like Amazon (AMZN) and Google (GOOG, GOOGL) are finding that maybe they didn’t cut enough people in last year’s large rounds of layoffs so they’re going back to the well and continuing to implement smaller, targeted additional layoffs.” For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor’s note:

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