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With nearly 50,000 tech layoffs so far in 2022, tech workers have cause for concern. During the first year of the pandemic, tech companies added workers at a record pace. As economic fears mount, these same companies are trying to cut staff and reduce overhead.
What lessons can we learn and what impact will these cuts have on workers? This huge pendulum swing shows the risks of growing too fast. And it’s not all bad news for techies.
How tech layoffs affect the industry
Technical layoffs have had a ripple effect across the industry. The employees who are lucky enough to keep their jobs are often confronted with an increased workload and pressure to perform. This can lead to overload and a lack of job satisfaction. Those who do lose their jobs often find it difficult to find a new job due to the highly competitive nature of the tech industry.
The result can be financial instability and loss of confidence, both for laid-off workers and those who remain in work. Workers in both camps now have less confidence in an employer’s ability to keep them on the payroll during tough times.
The Tech Labor Pool and Remote Working Options
The technical industry has to deal with several forces at once. Tech companies voluntarily fire employees. At the same time, tech workers — along with workers in most industries — are much more selective about where they want to work.
While tech companies complain about a shrinking workforce, the reality is they aren’t doing what it takes to attract and retain high-quality employees. Today’s workforce is looking for a company that treats its employees like people, stands up for what’s right, and gives employees the flexibility to work remotely.
While this situation isn’t great for tech workers, there’s one bright spot: the rise of remote working has created more opportunities for laid-off tech workers. With more companies embracing remote work, tech workers simply have more job opportunities.
The dramatic rise of remote working has also led to the creation of new job platforms specifically targeted at home workers. These platforms make it easy for tech workers to find remote hiring companies, including these newly formed companies.
Turning the tables on wallpapers
As a result of these changes, and with tech companies appearing willing to lay off large numbers of workers, tech workers have a chance to turn the tables. While a company that has offered you a job may perform a background check on you, it is important that you do your due diligence and check the company’s layoff record.
While you will never have absolute job security and past layoffs are no guarantee of future layoffs, it’s still better to know what you’re getting yourself into by reviewing a company’s layoff history. Google the name of the company along with the word “fired.” This will bring up any news reports about layoffs at the company.
As we are specifically interested in technology companies, you can also check out websites such as fired.fyi, which follow layoffs at startups and tech companies. This site provides detailed information about each company and lets you sort by various criteria.
Of course, not all layoffs are created equal. A company that has had to let a few employees go here and there isn’t necessarily one to avoid. On the other hand, if a company has had multiple layoffs in quick succession, that’s definitely something to consider. It could be a sign that the company is in trouble and may not offer long-term stability.
What’s next for the tech industry
It’s no secret that the tech industry has been through some rough years. We’ve seen billions of dollars worth of value wiped out, massive layoffs and a general loss of confidence in the industry. So, what’s the future of the tech industry? Will it recover after all the recent layoffs?
The short answer is yes, the tech industry will recover. In fact, it’s already starting to come. We see companies investing heavily in new technologies and software, creating a lot of new jobs – albeit at a slower pace than a few years ago, which may mean that technology companies have learned a thing or two.
Of course, there are still some challenges that need to be addressed. Many companies are still struggling to find the right balance between growth and profitability. And there is also a lot of concern about the impact of political uncertainties in the tech sector. So if you’re looking for a new role in the tech industry, whether you’ve been laid off or need a change from your current company, it’s good to be cautiously optimistic.
Top tips for those affected by a recent tech layoff
Do not panic
The first thing you need to do is take a deep breath. It’s normal to feel overwhelmed when you’re suddenly out of a job, but it’s important to keep your cool. Remember, this is just a setback, not the end of your career.
Update your resume
Highlight any relevant skills and experience you have and showcase your achievements in previous roles. If you’re short on experience, this is also a good time to volunteer or do an internship so you can add something to your resume.
Network, network, network
No matter what industry you are in, networking is always important. But it’s especially crucial if you’re looking for a job in tech. Start by reaching out to friends, family, and acquaintances who work in the industry and see if they have any job openings. You can also attend industry events and meetups or even just connect with people online through forums and social media groups. The more people you know, the better your chances of finding a new job.
Consider going freelance
If finding a new full-time job seems like too much of a challenge right now, another option is to freelance. There are plenty of freelance work opportunities in the tech industry, so this can be a great way to get a foot in the door and still earn an income. And once you’ve built a client portfolio, it’s much easier to find full-time work or continue doing your own thing later on.
What it comes down to:
The tech industry may have had a few rough years. While some of that is self-imposed by tech companies, tech workers have skills that are in high demand. Tap into that, tap into your network, and maybe you’ll find yourself in a new role at a company you like, working from a location you love.
Ayesha Whyte serves as Chief People Officer and Legal Adviser to multiple companies through her company, Dixon Whyte LLC.
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