Why are tech companies experiencing so many layoffs recently?

Tech companies are having to let some people go because they're not making as much money as before.

Imagine you have a big toy factory, and you hired a bunch of kids to help make toys. For a while, everyone was happy, lots of toys were being made, and the factory was doing great. But then, suddenly, fewer kids wanted to buy the toys. The factory didn’t get as much money as it used to.

So the boss had to decide: Do we keep all the kids working? But if they kept everyone, the factory might run out of money altogether. So the boss said, "We have to let some of our workers go." That's what’s happening in tech companies, they’re letting some people go so that they can save money and stay strong for the future.

When a company lays someone off, it means that person doesn’t get to work there anymore. They might have to find another job or take a break. It's like if your toy factory had to let one of your friends go, they’d be sad, but maybe they’ll find a new friend to play with somewhere else.

Sometimes companies also reduce the number of hours people work, so they don’t lose all their friends at once. It’s like sharing fewer toys between everyone, it’s not as fun, but no one gets left out completely.