Tech Layoffs: Are they a good thing?
For the past 12 months, every second post on LinkedIn has centred around a global tech company’s mass layoff. Whether it’s Big Tech, a start-up or even a local leader, tech talent seems to be dismissed at alarming rates. For those in the industry, maybe you’re an employee in a tech company or just impacted by the happenings, it’s scary.
But it might not be such a bad thing.
For Tech Companies
A pending recession is thought to be one of the most significant contributors to this tech industry trend, with tech companies buckling down to prepare for economic hardship and put themselves in the best position financially to weather the potential storm. Obviously, this can be a daunting fact but it’s important to consider that not all tech niches will be negatively impacted by a recession. Some companies will even find the period advantageous.
For example, considering the Lipstick Effect (an economic crisis theory surrounding consumer behaviour) budget-friendly entertainment companies such as Netflix and tech companies that support such including Microsoft Azure, are likely to experience an increase in user-ship during a period of global economic hardship.
Employers seeking tech talent are the most likely to benefit from this, with quality employees otherwise unavailable up for grabs. Companies with tech-centred job opportunities are in a unique position, able to cherry-pick highly qualified staff from a growing pool of killer tech talent.
Big Tech companies previously held positions as employers of choice, meaning mid-level and start-up companies were unable to attract talent of the highest quality. Lay-offs have dismantled the idea of job security within Big Tech firms, benefiting mid and lower-level employers.
For Tech Talent
Our advice: Don’t Panic. In reality this period is merely a re-distribution of tech talent. There’s still a major need for employees with tech backgrounds, experience and skill sets. Consider the rising need for Cyber Security talent and the constant growth of the AI industry. In addition, non-tech companies are increasingly moving their tech teams in-house, expanding the need for in-house tech roles especially surrounding security and data protection following the ever-famous Optus and Medibank security scandals.
If you’ve already been victim to a tech layoff: sit tight and breathe, optimise your LinkedIn, connect with recruiters and a new job opportunity won’t be far away.
In conclusion, we’re definitely not saying Tech-Layoffs are anything to cheer about. It’s a bit of a scary time to be part of the tech industry and we can’t deny that. However, it’s not as bad as you think it is.