In 2022, the tech sector was pushed into a dramatic cost-cutting mode prompted by economic volatility, high-interest rates and earnings pressures. This resulted in widespread layoffs across the sector, and subsequently, a new wave of sublease space was returned to tech markets across the U.S. These layoffs hit a high of over 165,000 tech employees who were laid off in Q1 2023.
By Q3 2023, layoffs slowed to just over 25,000 tech employees. Now the growing sublease supply is beginning to show signs of flattening and even declining in some major tech hubs.