If you’ve followed the news lately, it probably feels like tech companies are trimming staff the way people trim hedges in the spring — regularly and without much ceremony. Tens of thousands of jobs have already been cut in early 2026. That sounds dramatic. But the stock market? Surprisingly calm.

Here’s the twist: many of the companies announcing layoffs are still profitable. In fact, some have seen their stock prices hold steady — or climb. Executives are calling these cuts “efficiency moves,” which is corporate speak for, “We hired like crazy during the boom, and now we’re cleaning up the spreadsheet.” Wall Street seems to approve.

For workers inside the industry, though, it’s less theoretical. A layoff email doesn’t feel strategic. It feels personal. The ripple effects can extend beyond tech too — contractors, marketing teams, vendors — anyone tied to the ecosystem. But zoom out a bit, and the broader U.S. job market hasn’t shown signs of widespread collapse. This looks more like recalibration than free fall.

Now let’s talk about your money. If your 401(k) leans heavily into tech — and many do — this is a good moment to check your diversification. Not panic. Not sell everything. Just check. Tech isn’t disappearing. It’s maturing. The era of “growth at any cost” is fading, and efficiency is taking its place.

Here’s the bottom line: layoffs don’t automatically mean recession. Sometimes they mean executives are finally acting like adults with a budget. For investors and households, the smarter move isn’t reacting to headlines — it’s making sure your portfolio can handle both boom seasons and belt-tightening years.