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Tech layoffs ripple through Seattle as experts weigh recession vs. transition
As tech layoffs continue across the Puget Sound region, local businesses that rely on tech workers are feeling the impact, while experts say the industry may be shifting rather than collapsing.
SEATTLE - As tech layoffs hit the Puget Sound region, the question lingers of whether we're in tech recession or a tech transition.
Local perspective:
Tech layoffs have cascading effects, impacting other local businesses like food trucks, who depend on the lunch time rush.
"I love cooking, and I love to feed my customers," Nasima Akhter said.
Akhter runs the Spice on Curve food truck in South Lake Union. She's been serving her dishes with flavors from both Bangladesh and India since 2014.
Her business survived the pandemic, but with more tech layoffs she is worried.
South Lake Union food truck suffers sales dip from continued layoffs in tech-centric Seattle neighborhoods
"Slowly Amazon is laying off more people and then some people are also transferring to the other building in Bellevue, so I've lost a lot of customers," Akhter said.
Thousands of tech jobs have been slashed with Amazon announcing on Jan. 29 that nearly 2,200 jobs will be cut in Washington.
WARN notices tally up the most recent, with T-Mobile alerting state officials on Jan. 30, close to 400 workers will be laid off.
Expedia and Meta have also reported they're letting go of some local workers.
Microsoft cut more than 3,200 jobs locally last year, according to state WARN notices.
Jon Scholes, the Downtown Seattle Association President and CEO, said the explosive Amazon growth of the past isn't what to expect in the future.
What they're saying:
"It's not likely we're going to see a company like Amazon locate and grow at that rate. Now, I won't close off the possibility, but that was sort of a once in a generation moment, and incredible amount of economic activity, job creation, development, investment that came from that," he told FOX 13 News.
Scholes said diversification, and predictability when it comes to taxes and regulations, will be key tomorrow and beyond.
"We're going to have to be more scrappy and competitive and attract lots of different companies, of all shapes and sizes to locate here and make sure that the ones that are here today see themselves here 10, 20 years from now," Scholes said.
There is growth for companies like Boeing and in sectors including Biotech.
Artificial intelligence work is in demand.
"We're clearly in a period of transition though, where there's a lot of tech companies that are moving investment from certain initiatives, and projects, and teams, and having the effect of, you know, creating layoffs and taking that investment and moving it to AI," Scholes said.
The President and CEO of Seattle's Metro Chamber of Commerce warns in a recent letter to members, "Our Success Is More Fragile Than It Looks".
In the letter, he reflected on the pain felt in cities like Detroit, that relied on auto manufacturing, and Pittsburgh which was "powered by steel."
"I think, thankfully, Seattle and the Seattle region is one of the few regions that really stands to benefit from a lot of investment and growth in that space and having the talent pool we do," Scholes said.
He said Seattle is uniquely positioned for artificial intelligence with an AI House on the waterfront, an incubator and community of startups, connecting specialized talent with investment.
That potential is what local businesses like Spice on Curve are counting on.
"$40,000 a month, we used to sell a month. So now, we make barely $12,000. So, we can just pay our bills. We cannot save anything. Sometimes, you know, we have maintenance work. So, it's really getting hard on us," Akhter said. "I'm definitely concerned. I'm definitely concerned."
There are a number of local food trucks in the area near Spice on Curve who saw quite a bit of foot traffic on Monday afternoon. They're hopeful that continues even in the face of each layoff announcement that comes through.
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