Feb 17, 2023 - News

Colorado's tech layoffs are adding up but new report paints positive picture

Illustration of two cursor hands holding a box full of office supplies.

Illustration: Allie Carl/Axios

The mass layoffs across the tech industry are now hitting Colorado.

Why it matters: The workforce reduction shows many companies β€” including those based in Colorado β€” are rethinking growth strategies after going on hiring sprees during the pandemic.

State of play: More than 200 people have been laid off from tech jobs based in metro Denver since the start of the year, according to the tracking site Layoffs.fyi.

  • Denver-based Inspirato let go of 109 employees due to slowing sales, while Louisville-based Jumpcloud cut 100 workers last month in part due to inflation.
  • Twilio, a cloud communications software company with offices in Denver, said Monday it would reduce its workforce by 17%, according to the Denver Business Journal. It wasn't immediately clear how that would affect local employees.
  • Gusto, a benefits and payroll company with offices in Denver's Tabor Center, announced last week it would lay off 126 people, with its CEO citing the "volatile economic climate."

Yes, but: The latest Colorado Tech Industry Report released Wednesday paints a rosy outlook for an industry that made up 9% of the state's workforce and generated $76 billion toward the state's GDP in 2021.

  • Colorado tech jobs are predicted to grow by 11% over the next five years.

Of note: While the industry report focuses primarily on 2021, it does include some figures from 2022, when tech businesses struggled to fill open positions β€” something attributed in part to workers taking better-fitting jobs.

What they're saying: "Demand and business conditions remain strong leading to a high rate of job openings," the report reads. "However, hiring has not been able to keep pace. This pattern matches national and global labor shortages."

  • Still, Ted Abernathy, Managing Partner of Economic Leadership, who led the research, said in a statement the industry's looks bright.

Zoom out: Colorado ranked third in the country with at least 23,000 "job separations" in November, which includes layoffs and firings, according to the U.S. Bureau of Labor Statistics, behind only California and Washington.

  • Last year, larger companies including Twitter and Lyft also laid off employees in Colorado.

The big picture: Layoffs.fyi lists 364 tech companies who collectively laid off more than 105,000 employees so far this year, which includes domestic and international jobs.


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