For a long time, people thought Silicon Valley was recession proof. The last two weeks have made it apparent that that is not the case. At least dozens of tech companies - including Adbrite, eBay, Zillow, Pandora - have announced layoffs in October, most of them in the last two weeks. "The next big thing in IT is not a technology -- it is cost reduction, risk management and compliance," said Gartner’s Peter Sondergaard. Gartner projects budget cuts of up to 20% at some companies. Yahoo! is expected to cut more jobs than initially announced in January; that announcement could come as early as today. The cuts are expected to cost more than 1000 jobs.
Adding to Silicon Valley’s woes are those affecting the entire Bay Area. “The San Francisco district, which includes Silicon Valley, saw slowing tourism, some weakening in employment, weaker capital spending and reduced demand for professional business services. San Francisco reported increasing discounting by retailers. It was one of three districts reporting the sharpest declines in commercial real estate and construction. New York and Dallas were the other two,” wrote Pete Carey and Donna Kato on Siliconvalley.com.