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Visualizing Tech Company Layoffs in 2022

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tech layoffs in 2022

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Visualizing Tech Company Layoffs in 2022

Layoffs are happening so frequently in 2022 that everyone from Crunchbase to Indian tech website Inc42 are now keeping track.

There is even a standalone website tracking all tech layoffs in the United States.

For the purposes of this infographic, we’ve used data from trueup.io which includes a mix of U.S. and international tech companies that have let workers go in 2022.

A Thousand Cuts: Mass Layoffs by Tech Companies

Layoffs are having an impact on the entire tech industry, and the phenomenon is global. Here are some of the most high-profile examples of mass layoffs in 2022:

Meta: The social media giant faces competition from upstarts like TikTok, as well as a pool of ad dollars that is shrinking in the face of a faltering economy. Although this reduction in headcount is painful for Meta, it’s worth considering a more broad perspective. In close to two decades of doing business, these will be the company’s first wide-scale job cuts.

Twitter: Though Meta wins with sheer volume of cuts, Twitter’s mass layoffs are surely the most dramatic. In early November, the company’s iconoclastic new owner, Elon Musk, slashed 50% of the workforce, and soon after, thousands of contractors also suddenly lost their jobs. Estimating how many employees remain at the company will remain a challenge until the dust settles.

Byju’s: Layoffs are not just confined to the United States. India’s sizable tech sector is also facing cuts. EdTech giant, Byju’s, laid off 2,500 employees in October—around 5% of its total workforce.

Peloton: The high-end workout equipment company has been dropping its headcount throughout the year. In the visualization above, companies like Meta stand out as they eliminated thousands of employees all at once. Peloton, however, executed its layoffs in stages throughout the year. After strong growth during the pandemic began to stagnate, the company is slimming down to regain profitability.

Why are Tech Companies Laying Off so Many People?

The stated reasons for letting so many workers go are economic uncertainty (external factors) and poor performance (internal factors).

Goldman Sachs Research points out that “higher interest rates and tighter financial conditions disproportionately impact the sector because tech company profits are typically expected further out in the future and therefore subject to greater duration risk.”

Shrinking advertising budgets and the implosion of the cryptocurrency market are also factors that may have influenced the decision to cut headcounts. Twitter and Snapchat fall into the former bucket, while Coinbase and Kraken fall into the latter.

What Do These Job Cuts Mean for the Economy?

At face value, widespread layoffs in the tech sector might appear to be a bad omen for the wider economy—especially given the outsize influence tech companies have on the markets.

Thankfully, this does not appear to be the case. Payroll and wage data from the U.S. government have exceeded expectations, and the country’s unemployment rate is close to a half-century low.

So, why the disconnect?

First off, tech jobs only account for less than 3% of total employment in America. As well, tech workers who’ve lost their jobs have a high likelihood of securing a new job in short order.

It remains to be seen whether November will be the peak of job cuts. Employers generally try to avoid letting people go right before the holiday season. One week into December, Trueup.io has tracked 7,600 more layoffs.

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Mapped: How Much Does it Take to be the Top 1% in Each U.S. State?

An annual income anywhere between $360,000-$950,000 can grant entry into the top 1%—depending on where you live in America.

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A cropped map of the U.S. listing the annual income needed to be in the top 1% in each state.

How Much Does it Take to be the Top 1% in Each U.S. State?

There’s an old saying: everyone thinks that they’re middle-class.

But how many people think, or know, that they really belong to the top 1% in the country?

Data from personal finance advisory services company, SmartAsset, reveals the annual income threshold at which a household can be considered part of the top 1% in their state.

Some states demand a much higher yearly earnings from their residents to be a part of the rarefied league, but which ones are they, and how much does one need to earn to make it to the very top echelon of income?

Ranking U.S. States By Income to Be in the Top 1%

At the top of the list, a household in Connecticut needs to earn nearly $953,000 annually to be part of the one-percenters. This is the highest minimum threshold across the country.

In the same region, Massachusetts requires a minimum annual earnings of $903,401 from its top 1% residents.

Here’s the list of all 50 U.S. states along with the annual income needed to be in the 1%.

RankStateTop 1% Income
Threshold
Top 1% Tax Rate
(% of annual income)
1Connecticut$952,90228.40%
2Massachusetts$903,40127.15%
3California$844,26626.95%
4New Jersey$817,34628.01%
5Washington$804,85325.99%
6New York$776,66228.29%
7Colorado$709,09225.86%
8Florida$694,98725.82%
9Illinois$660,81026.35%
10New Hampshire$659,03726.25%
11Wyoming$656,11824.79%
12Virginia$643,84826.11%
N/ANational Average$652,657N/A
13Maryland$633,33325.94%
14Texas$631,84925.83%
15Utah$630,54423.77%
16Minnesota$626,45125.53%
17Nevada$603,75125.19%
18South Dakota$590,37322.99%
19Pennsylvania$588,70224.95%
20North Dakota$585,55624.76%
21Georgia$585,39725.06%
22Oregon$571,81324.66%
23Arizona$564,03125.22%
24Idaho$560,04023.17%
25North Carolina$559,76225.31%
26Montana$559,65624.46%
27Kansas$554,91225.03%
28Rhode Island$548,53125.26%
29Tennessee$548,32925.12%
30Alaska$542,82425.38%
31Nebraska$535,65124.10%
32Delaware$529,92825.37%
33Vermont$518,03923.63%
34Wisconsin$517,32124.90%
35South Carolina$508,42724.40%
36Michigan$504,67125.01%
37Maine$502,60524.04%
38Missouri$500,62624.93%
39Ohio$500,25325.09%
40Hawaii$495,26324.12%
41Iowa$483,98524.09%
42Indiana$473,68524.55%
43Alabama$470,34123.82%
44Oklahoma$460,17223.68%
45Louisiana$458,26924.80%
46Arkansas$450,70021.11%
47Kentucky$445,29424.14%
48New Mexico$411,39523.35%
49Mississippi$381,91923.04%
50West Virginia$367,58223.26%
N/ANational Median
Household Income
$75,000N/A

California ($844,266), New Jersey ($817,346), and Washington ($804,853) round out the top five states with the highest minimum thresholds to make it to their exclusive rich club.

On the other end of the spectrum, the top one-percenters in West Virginia make a minimum of $367,582 a year, the lowest of all the states, and about one-third of the threshold in Connecticut. And just down southwest of the Mountain State, Mississippi’s one-percenters need to make at least $381,919 a year to qualify for the 1%.

A quick glance at the map above also reveals some regional insights.

The Northeast and West Coast, with their large urban and economic hubs, have higher income entry requirements for the top 1% than states in the American South.

This also correlates to the median income by state, a measure showing Massachusetts households make nearly $90,000 a year, compared to Mississippians who take home $49,000 annually.

How Much Do the Top 1% Pay in Taxes?

Meanwhile, if one does make it to the top 1% in states like Connecticut and Massachusetts, expect to pay more in taxes than other states, according to SmartAsset’s analysis.

A chart showing how states with the top highest and lowest average tax rates for their top 1% residents.

The one-percenters in the top five states pay, on average, between 26–28% of their income in tax, compared to those in the bottom five who pay between 21–23%.

And this pattern exists through the dataset, with higher top 1% income thresholds correlating with higher average tax rates for the wealthy.

State RanksMedian Tax Rate
Top 1026.65%
20-3025.09%
30-4024.65%
10-2025.07%
40-5023.75%

These higher tax rates point to attempts to reign in the increasing wealth disparity in the nation where the top 1% hold more than one-third of the country’s wealth, up from 27% in 1989.

Where Does This Data Come From?

Source: SmartAsset’s America’s Top 1% Is Different in Each State uses data from 2020 individual tax filings from the IRS, adjusted to 2023 dollars using the Bureau of Labor Statistics’ Consumer Price Index.

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