Key facts
- Silicon Valley therapists are seeing new neuroses among tech workers, including "complicity grief" and "liquidity anxiety."
- Over 120,000 tech jobs have been cut globally in 2026, with major companies like Meta and Google conducting layoffs.
- Burnout rates among tech workers have increased, and career optimism has declined.
- AI is a significant factor, causing distress for those who developed the technology that may displace their peers.
- Laid-off tech workers are facing extended unemployment and seeking new career paths, some even pursuing roles in law enforcement.
- Some tech professionals feel empowered by AI, describing themselves as "sorcerers," while others fear their roles will be automated within a decade.
- A shift towards more transactional company cultures is leading employees to question their loyalty and explore other opportunities.
- Many tech workers are seeking roles in companies with missions they value, such as environmental protection or cancer treatment, as their self-worth is often tied to their work.
Silicon Valley's tech workers are experiencing a new wave of psychological distress, characterized by "complicity grief" and "liquidity anxiety," as the industry grapples with mass layoffs and the rapid advancement of artificial intelligence. Therapists report that clients are no longer just dealing with burnout but are facing existential crises about their career paths and identities in an increasingly automated world.
Globally, over 120,000 tech jobs have been eliminated in 2026, with prominent companies like Meta, Google, Oracle, Salesforce, and Amazon implementing significant workforce reductions. A survey by Lenny's Newsletter revealed a notable increase in burnout among tech workers, rising from 44.4% in 2025 to 55.7% in 2026, while career optimism fell from 54.8% to 48.7% over the same period.
Annie Wright, a psychotherapist, coined the term "complicity grief" to describe the distress experienced by tech workers who developed the AI technologies now displacing their colleagues. This includes engineers who trained models that automate jobs and product managers who launched AI features leading to redundancies.
For those who have been laid off, the situation is particularly challenging. Nick Sanchez, founder of Silicon Valley Therapy, notes that many of his clients have been unemployed for extended periods, forcing them to seek contract work, pivot to non-tech roles, or pursue entirely new career fields, with one client aiming for the FBI.
Conversely, some tech professionals are finding empowerment through AI, with one senior engineer describing the feeling as being a "sorcerer." However, even these individuals, with over a decade of experience, anticipate their engineering roles becoming obsolete within ten years. This has led some financially secure clients to experience a "third-life crisis," with a notable increase in male clients expressing a desire to become stay-at-home dads.
Josh Altman, a therapist working with tech professionals, observes that the industry's increasingly "hardcore" environment, with mandates like return-to-office policies, has made organizations feel more transactional. This sentiment is prompting long-term, loyal employees to question their career paths and explore external opportunities. Some are moving abroad, while others have quit lucrative positions to pursue less demanding roles, such as managing a local library board or focusing on AI safety boundaries.
Ross Nelson, a clinical psychologist, echoes this trend, noting that tech workers who feel their current roles lack impact are seeking companies with missions they align with, such as those in cancer treatment or environmental protection. The deep connection between tech workers' self-image and their careers—whether defined by job title, compensation, company prestige, or promotion speed—makes adjusting to a less frenetic work environment particularly difficult.