Image: Amazon
For decades, the Seattle region thrived on the rapid growth of Amazon and Microsoft, transforming into one of the nation’s leading tech hubs. That boom brought rising home values, new startups, and bustling retail and restaurant sectors. Now, the local economy is adjusting to a slowdown.
Since 2023, Amazon and Microsoft have together cut more than 46,000 jobs, representing the majority of local tech layoffs. While Microsoft’s market value has grown, its U.S. workforce has expanded only slightly, and Amazon recorded its first employment decline in Washington state in 2024. Other Seattle-area companies, including Expedia and Redfin, have also scaled back.
The ripple effects are evident. Restaurant and retail sales near corporate campuses have dipped, with hundreds of restaurants closing in 2025. Commercial real estate vacancies are at record highs, and housing activity has slowed. The city faces a projected $146 million budget shortfall from weaker payroll and sales tax revenues.
Despite these challenges, downtown activity has picked up as companies require more in-person work, and sectors like aerospace and trade remain steady. Still, many workers are shifting to other industries or entrepreneurship as the tech job market recalibrates for a future shaped by automation and artificial intelligence.
Read the full WSJ article here.
