Tech Layoffs Hit Big Tech Companies: What Does It Mean For The Future of Work?
By The tech industry has been hit hard by mass layoffs in the last few weeks, with many Big Tech companies such as Google, Amazon, and Meta cutting thousands of jobs in an attempt to course correct.[0] This is the highest number of tech layoffs since the dot-com burst in the early 2000s, and the trend is showing no signs of slowing down.[1] While some companies, such as Apple, have avoided the layoffs so far, the tech sector is still shaken up.[2]
Data shows that most of the laid-off tech workers are finding new roles relatively quickly in a still tight job market, with nearly 80% of them finding new jobs within three months of beginning their job search.[3] While this is reassuring for newly unemployed tech workers, it paints a seemingly grim picture for the future of work in the tech sector.[2]
The tech layoffs don't necessarily signal an impending recession, but they could be a sign that tech companies are anticipating reduced growth against the backdrop of an uncertain economic future.[4] Despite the layoffs, the need for tech talent is still desperately needed in many industries, particularly start-ups and businesses that need tech workers.[4] This means that the talent pool is just trickling down to organisations that may not have considered themselves as ‘tech’ before.[2]
Overall, it's clear that the tech layoffs are a sign of a shifting industry, and they are likely to continue in the coming months. While this may be worrying for tech workers, it also presents an opportunity for those who are willing to take the risk and look for new opportunities.
0. “I was laid off from a public health job. Trust me, tech layoffs are different” STAT, 3 Feb. 2023, https://www.statnews.com/2023/02/03/public-health-layoffs-and-tech-layoffs-a-world-of-difference
1. “Big Tech Layoffs Leave HR Professionals with Key Questions” SHRM, 6 Feb. 2023, https://www.shrm.org/resourcesandtools/hr-topics/organizational-and-employee-development/pages/big-tech-layoffs-leave-hr-professionals-with-key-questions.aspx
2. “Tens of thousands have been laid off in tech: what will happen next?” UNSW Newsroom, 2 Feb. 2023, https://newsroom.unsw.edu.au/news/business-law/tens-thousands-have-been-laid-tech-what-will-happen-next
3. “The Great Tech-xodus: Why Meta, Microsoft and Amazon have had to fire a quarter of a MILLION staff” Daily Mail, 3 Feb. 2023, https://www.dailymail.co.uk/sciencetech/article-11704815/The-Great-Tech-xodus-Meta-Microsoft-Amazon-fire-quarter-MILLION-staff.html
4. “Despite big layoffs, it’s still a great time to work in tech, experts say: ‘I’ve seen bad job markets…this is not it’” CNBC, 3 Feb. 2023, https://www.cnbc.com/2023/02/03/despite-big-tech-layoffs-its-still-a-good-time-to-work-in-tech.html
