Tech News

How nationwide layoffs in the tech industry will impact the Austin economy

Google is the latest tech company to announce thousands of job cuts nationwide.

Rendering courtesy of Pelli Clarke Pelli Architects

Much of the fuel driving Austin's economic boom is the tech industry, which is why the recent string of layoffs seen nationwide worries some.

Google is one of those local tech giants. It's also the latest tech company to cut thousands of jobs. And earlier this month, Microsoft announced it too is slashing 10,000 jobs. Meanwhile, Amazon, Meta, and Twitter announced thousands of layoffs over the last few months. All five of these companies have ties to Central Texas.

"There's usually a gap between the time job cuts are announced and when they actually happen," Ray Perryman with Perryman Group, an economic research company. "But we're just beginning to see some of those."

The Texas Workforce Commission said despite layoffs in the tech industry, the unemployment rate in Texas went down in December. Central Texas added 1,800 jobs over the last month.

"What's important to note is even during the course of a downturn of the economy, we're still working hard at creating jobs," said Roland Peña, Austin Chamber Global Technology and Innovation Vice President. "Recruiting companies, ensuring that there is programing around startups so that they can be successful, whether it be capital, block capital, or whether it be workforce, talent."

While the Austin area will face some challenges in 2023, the city's reputation and success in attracting startups and tech companies will serve as a cushion.

Read the full story and watch the video at KVUE.com.

Keeping The Lights On?

ERCOT meteorologist predicts higher chance of extreme cold this winter

Photo courtesy of KVUE

ERCOT says it has improved its reliability, but other Texans aren't sure it's enough.

The lead meteorologist for the state’s power grid operator, ERCOT, is predicting both a warmer winter and a higher chance of extreme cold.

During a Tuesday board meeting, Chris Coleman said current climate patterns are very similar to those in 2021 when a winter storm knocked out power for millions of Texans for several days.

“Now, that doesn’t mean we’re going to have [Winter Storm] Uri, but it does again say that we’re in a pattern that supports something like a Uri this winter,” said Coleman, ERCOT's supervisor of operational forecasting.

Coleman compared his winter forecast to a tornado watch: The conditions are there, but the storm may or may not happen.

ERCOT CEO Pablo Vegas told KVUE on November 25 that he doesn’t expect calls for conservation or rolling blackouts.

“We're ready for those kinds of conditions at ERCOT,” said Vegas.

During Tuesday’s board meeting, Vegas touted nearly 3,000 weatherization inspections since 2021 and more than 10,000 megawatts of new generation added to the grid since March, mostly solar and battery storage. ERCOT estimates 1 megawatt can power 250 homes on average during peak winter demand.

However, Texas energy consultant Doug Lewin questions that math.

“[We are] better off than we were in February 2021 but not out of the woods,” said Lewin, who authors the Texas Energy and Power Hour newsletter and hosts the Energy Capital podcast. “We don’t have a system that’s resilient enough to deal with a Winter Storm Uri.”

Lewin points to two main reasons: a natural gas supply system he says is not adequately winterized, along with inefficient homes and buildings that push demand beyond supply.

“We have to bring that demand down and do that by increasing the programs we have for energy efficiency to replace inefficient heat with much more efficient forms of heat, like heat pumps.”

Read the full story and watch the video at KVUE.com.

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