Why are many tech companies laying off employees despite high demand?

Tech companies are letting go of workers even though people still want their products because they hired too many people too quickly during a time of very cheap money.

Imagine you are building a giant LEGO castle. When money was easy to get, the company bought way more LEGOs (employees) than they actually needed. They thought they would need them all to build a huge, complicated castle. But then, the price of borrowing money went up, like when your allowance is cut in half. Now, the company has to stop buying new LEGOs and even put some back in the box to save money.

Even though they are sending people home, customers still want to buy the castle. The demand for the product is high, but the company needs to work smarter, not just with more people. They are trying to fit the same amount of work into fewer pairs of hands. It is like trying to eat a huge pizza with only two friends instead of five. It is harder, but possible if everyone works a little faster. This helps the company stay strong without going broke.

It is not that people don’t need the tech; it is that the company hired too many helpers when money was free, and now they must trim the fat.