San Francisco

How Will Tech Layoffs Impact Businesses in San Francisco?

NBC Universal, Inc.

Several small business owners in San Francisco are concerned after more companies have announced layoffs.

The job cuts mean companies in the city may have more empty desks on top of downsizing office spaces during the pandemic.

"We were kind of relying on those businesses around us," said Raziye Mitchell, who owns a pita and gyro stand in San Francisco.

In early October, Meta announced plans to consolidate it's San Francisco offices and move employees to it's Howard Street location.

Marco Paz, who owns a hair salon across the street from Meta's SF offices, said "we don't know what's going to happen" on how the company's move will impact business.

Last month, Mitchell and her business partner opened their stand across the street from the Meta office tower which will remain open.

She was forced to close her full-service restaurant in the East Bay during the pandemic, so news of more tech layoffs is a shock. She has no choice but to stay hopeful.

Amazon is planning to lay off about 10,000 employees in corporate and technology roles starting this week, according to a report from The New York Times. Twitter continues cutting workers.

"We're not going to give up," Mitchell said. "We'll be here every day still."

Mayor London Breed had been encouraging companies to ask employees to return to work at least a few days a week, to help struggling small business owner.

However, with continued layoffs in the tech sector, the mayor is now looking to attract other industries to the city.

"We look at clean tech, we look at some of the work we can do on green energy and enhance our manufacturing jobs and other things and get to a better place, but its gonna be a rough patch," she said.

The wave of tech layoffs has a domino effect. San Francisco is struggling to fill millions of square feet of empty office space. Business and Tech Reporter Scott Budman has some insight.
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