Layoffs, health scares and family needs are forcing some into retirement before they're ready.
San Francisco, California – Silicon Valley is facing another round of significant job losses, as major tech companies including LinkedIn, Chegg, and Hewlett Packard Enterprise (HP) slash hundreds of positions across the Bay Area. According to Worker Adjustment and Retraining Notification (WARN) notices filed with California’s Employment Development Department (EDD), over 400 layoffs were reported in May alone — a stark reminder of the region’s shifting economic landscape.
LinkedIn led the latest round, eliminating more than 280 roles last month, including 159 jobs at its Mountain View headquarters. Educational technology firm Chegg followed with 88 layoffs in Santa Clara on May 15, the same day HP announced 61 job cuts in San Jose.
All three companies labeled the layoffs as permanent. While the companies did now disclose specific reasons in the WARN notices, each firm has previously cited cost-cutting, restructuring, and a pivot toward artificial intelligence as key factors in workforce reductions.
Chegg, whose revenue dropped 30 percent year-over-year in the first quarter, announced it would reduce its headcount by 22 percent and shut down its physical offices in the U.S. and Canada by the end of 2025. The company cited increasing competition from free AI tools, such as ChatGPT and Anthropic’s educational offerings, as reasons for its decline.
HP, meanwhile, indicated in a Securities and Exchange Commission (SEC) filing that it expects to cut 1,000 to 2,000 more jobs this year — in addition to 7,000 layoffs already planned under its 2023 restructuring initiative. HP CFO Karen Parkhill has described the reductions as part of a long-term effort to stabilize finances and invest in AI development.
These job cuts are part of a broader trend. According to the Los Angeles Times, technology companies in California have announced nearly 18,000 layoffs in the first quarter of 2024. In May, Microsoft filed WARN notices for almost 100 California layoffs as part of a company-wide reduction affecting roughly 6,000 employees.
Clair Brown, a professor of economics at UC Berkeley, told Newsweek that the job market for recent college graduates is weakening due to shifting trade dynamics and growing reliance on AI. “Employers are increasingly using AI for tasks like coding, marketing, and customer service,” she said. “That’s making it harder for early-career professionals to find stable employment.”
Despite the layoffs, California’s April jobs report showed the state added 17,700 jobs — a rebound after losing 6,800 in March. But for Silicon Valley workers, especially in tech, the message is clear: the AI revolution is here, and it’s reshaping the workforce at a rapid pace.
