Home E-City Seattle’s Tech Reckoning: Layoffs, AI, and the Human Side of Disruption

Seattle’s Tech Reckoning: Layoffs, AI, and the Human Side of Disruption

The greater Seattle tech ecosystem—long defined by relentless growth, deep talent pools, and global influence—is hitting a moment of reckoning.

In recent months, a spate of layoffs has rippled across the region, highlighted by Amazon cutting nearly 2,200 Washington-based jobs last week, more than half of them in core product and engineering roles. T-Mobile has announced 393 layoffs in Washington, while Expedia and Meta have also reduced headcount.

These moves are not isolated. They reflect a broader structural shift as companies race to integrate AI, automation, and robotics into their operations—often faster than their organizations, cultures, and people can adapt.

Why This Is Happening Now

After years of aggressive hiring, many tech firms are recalibrating. Generative AI systems now automate tasks once handled by large teams: software testing, customer support, data analysis, marketing optimization, even elements of product design. Robotics and automation are reshaping logistics and hardware operations. The result is a drive for “leaner” organizations—fewer people, higher leverage, more machine-driven output.

From a balance-sheet perspective, this may look rational. From a human perspective, it’s destabilizing. Layoffs today are not just about cost-cutting; they’re about redefining what work looks like in an AI-accelerated economy.

The Emotional Reality of Layoffs

Shanon Olsen Henley Leadership Group COO
Carol Zizzo,
Henley Leadership Group CEO

Seattle-based leadership consultants Carol Zizzo and Shanon Olsen of the Henley Leadership Group work closely with leaders and employees across the region, including clients at major tech firms like Microsoft, Amazon, and HP. Their perspective underscores something often lost in headlines: layoffs are as much an emotional event as an economic one.

“If you’ve been personally affected by a layoff, your job now is to make sense of what’s happened,” they note. “Being the one who’s laid off can feel like a gut punch—a shock that brings grief, fear, anger, and self-doubt.” Many people cycle through stages of loss described by Elizabeth Kübler-Ross. These stages aren’t neat or linear. Shock—Why me?—often comes first. Acceptance takes time.

Stories of Disconnection—and Grace

Those who remain aren’t untouched. Survivor’s guilt is real, especially when close colleagues are let go. Fear creeps in: Will I be next? And when the dust settles, there’s often simply more work to do with fewer people to do it. Teams stretch thin. Trust frays. Promises from leadership can sound hollow when people are exhausted and uncertain.

One team leader described a standing meeting after a major layoff. She tried to move straight into the agenda, but the group was unusually quiet. Finally, she stopped and asked, “Do you just want to talk?” The room visibly exhaled. People needed space to process before they could perform.

Compounding the strain, many layoffs now happen via email—no conversation, no closure. Employees log off one day, ship back their laptops the next, and never get a real goodbye. The efficiency may suit systems optimized for scale, but it leaves people emotionally stranded.

What Leaders Can Do Right Now

In turbulent times—especially when more cuts may be coming—leadership matters more, not less.

Listen deeply and stay connected. As Stephen Covey wrote, “Seek first to understand and then to be understood.” Full, undistracted listening builds trust when it’s needed most.

Cultivate empathy. Author Sherrie Campbell reminds us that empathy lowers defensiveness and opens space for something better. Simple questions like “What’s your biggest worry right now?” or “How can I help?” can be powerful.

Tell the truth—with care. Be honest about what you know and transparent about what you don’t. Even hard truths stabilize teams more than silence or spin.

Help people grow through uncertainty. Leaders who focus on developing people—not just managing outcomes—build resilience one conversation at a time.

Taking Good Care of Yourself After a Layoff

If you’ve been laid off, start with the basics. Eat well. Move your body. Sleep. These are not luxuries; they’re the foundation for recovery.

Watch your thoughts. The inner critic can be brutal: You’ll never find another job. You’re not good enough. When those thoughts arise, practice letting them go—like training a puppy to drop a sock it shouldn’t have. Replace them with steadier perspectives: Things do work out for me. I am okay right now.

Optimism takes time. Pessimism can feel like protection, but it’s not a great long-term strategy. Shifting away from constant negativity opens space for possibility—and new beginnings.

The Silver Lining: Opportunity in Uncertainty

Layoffs are painful. But they can also deepen empathy, sharpen leadership, and force overdue reflection—on careers, on values, on what kind of work actually matters. Whether you’re guiding a team through disruption or rebuilding your own footing, this moment calls for listening deeply and acting compassionately.

Sometimes effective leadership isn’t measured by control or decisiveness, but by how we show up when things fall apart.

Tips: Finding Your Way Forward

Whether you’ve been laid off or left behind, a few steps can help restore momentum:

  • Pause before reacting. Shock and anger are normal. Clarity comes later.
  • Reach out. Don’t isolate. Trusted friends, colleagues, and mentors can help you see options you might miss alone.
  • Take inventory. List your strengths, experiences, and what genuinely energizes you.
  • Prioritize well-being. Physical stability supports emotional recovery.
  • Set one small goal. Update your résumé, schedule a coffee chat, or learn a new skill. One step creates momentum.

Seattle’s tech story is changing. AI and automation are rewriting the rules—but they don’t erase the need for humanity, connection, and thoughtful leadership. If anything, they make those qualities more essential than ever. [24×7]