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The technology industry has been a beacon of hope for many workers over the last 20 years, offering high-paying jobs and a stable career path. However, the COVID-19 pandemic and everything that came with it has brought an end to this era of stability, with many technology companies continuing to conduct layoffs. According to a Crunchbase News tally, more than 66,000 employees of US tech companies have been laid off in 2023. And that’s on top of the 140,000 who lost their jobs last year. In this blog, we’ll explore the reasons for the current wave of technology layoffs, what it means for the future of the industry and what measures those affected can take to move forward with their careers.
Causes of Layoffs in the Tech Industry
There are many factors that have contributed to the growing number of layoffs in the technology industry. One of the main causes is the boomerang effect of the massive hiring spree during the pandemic. Amazon and Meta were the most aggressive in boosting their workforce during COVID-19, with their headcount doubling. Microsoft and Google were not far behind, increasing their staff by more than half. Apple also grew its workforce, but at a much slower rate than its tech-giant rivals, of around 20%. And many smaller tech companies followed suit, hiring more workers at significantly higher salaries due to a real or perceived labor shortage. Notably, Apple is the only large tech company that hasn’t declared any job cuts.
In addition to right-sizing the number of employees, the pace of technological change has accelerated, making it difficult for companies to keep up with the latest trends and develop products that will remain relevant long term. Beyond the labor costs, which are often higher in the tech space than in other industries, there’s been a shift in the way companies are structured, with a greater focus on short-term profits and less on long-term growth. This has led to layoffs as companies try to reduce their costs, which has been exacerbated by the economic downturn. Moreover, the growth in market dominance of big tech juggernauts such as Google and Amazon has created an environment in which smaller companies struggle to compete, making layoffs more likely.
Impact of Layoffs in the Tech Industry
Layoffs can have a devastating effect on both those affected and the industry as a whole. For those who’ve lost their jobs, it can be an extremely difficult time, as they must suddenly adjust to a new reality while also dealing with the pressure to find a new job quickly. And it can be difficult to find a job in the tech industry as competition is often fierce and there are fewer opportunities than before. Not to mention the reputational damage and loss of trust in the company among those directly impacted, colleagues close to them, and even those following the news.
For the tech industry as a whole, layoffs can have a negative effect on morale, as those impacted may feel that their hard work hasn’t been recognized which may cause them to look for work elsewhere. This can lead to a talent drain, as skilled workers are often reluctant to stay within an industry that’s undergoing layoffs. It can also lead to a decrease in innovation, as companies may be more reluctant to invest in research and development if they are unsure about the future of their workforce.
Where is the Tech Industry Heading?
The technology industry is continuously evolving, with new innovations and business models emerging all the time. In the coming months and years, we can expect to see continued growth and investment in areas such as artificial intelligence, blockchain, 5G, and cloud computing, to name a few. The integration of technology into our daily lives will become even more ubiquitous, with technology playing an essential role in the way we live, work, and interact with one another. As the tech industry continues to expand, we can expect to see more job opportunities in areas such as software development, data analytics, cybersecurity, marketing, sales, and cloud computing. Despite the challenges posed by the pandemic and the shifting economic landscape, the industry remains an exciting and dynamic sector of the economy, with a bright future ahead.
Tips for Finding a New Job After a Layoff
If you’ve been affected by a layoff, it can be a difficult time, but it’s important to remember that there are still many great opportunities out there. Here are some tips for finding a new position:
Update your resume and online profiles. Make sure that your resume and online profiles are up to date, and make sure to highlight any skills and experience that you have that are relevant to the job you are looking for.
Network. Reach out to your contacts and ask for their help in finding a new job. They may be able to provide you with useful information or refer you to potential employers.
Take advantage of resources. There are a number of resources available to those affected by a layoff, including government programs and job search websites. Make sure to take advantage of these resources to help you find a new job.
Stay positive. It can be easy to become discouraged after a layoff, but it is important to stay positive and focused on finding a new job.
Resources for Those Affected by a Layoff
If you’ve been affected by a layoff, there are a number of resources available to help you find a new job. Here are some of the most helpful resources:
Government Programs. The government offers a number of programs that can provide assistance to those affected by a layoff. These include unemployment benefits, job search assistance, and job training programs.
Job Search Websites. There are a number of websites that can help you find a new job, such as Indeed, Monster, and Glassdoor. Make sure to take advantage of these resources to find the best job for you.
Career Coaches. Career coaches can provide valuable advice and support during your job search. They can help you create a job search plan, prepare for interviews, and find the best job for you.
Professional Organizations. Professional organizations such as the Institute of Electrical and Electronics Engineers (IEEE) can provide valuable resources for those affected by a layoff. These organizations often offer job search assistance, networking events, and other helpful resources.
To Help, We’ve Gathered a List of Open Roles in the Marketplace and Sharing Economy:
Adyen-Risk Specialist: Adyen is looking for a Risk Specialist for our San Francisco office. This is a customer-facing role and the main focus will be protecting and educating our merchants, as well as internal stakeholders regarding fraud and chargebacks. This role will act as Adyen’s subject matter expert on chargebacks and fraud mitigation. Apply here
Honor-Trust & Safety, Escalation Lead: As an Escalations Lead, your job is to closely monitor Honor’s safety escalations channels (which can be over the phone or through online communication) to ensure that service incidents are handled by Honoro's market teams in the appropriate manner; and to provide real time feedback and direction to ensure the health and safety of our clients and caretakers. Apply here
Meta-Privacy Compliance Manager: The global privacy regulatory landscape is not static and the product and technical landscape at Facebook changes multiple times daily to continue to meet and exceed the needs of over three billion users on our platform. Apply here
Roblox-Trust & Safety Operations Manager, Text Filter: Roblox is looking for someone to analyze complex technical data to help us determine how bad actors might operate and manifest on our platform, and how we can stop them. You will report to the Senior Manager, Intelligence & Investigations on our world-class Trust & Safety team. Apply here
Sift-Trust and Safety Architect: Sift is the leading innovator in Digital Trust & Safety. Hundreds of disruptive, forward-thinking companies like Zillow, and Twitter trust Sift to deliver outstanding customer experience while preventing fraud and abuse. Apply here
Snap Inc.-Manager, Proactive Trust & Safety Operations: Snapchat is looking for an experienced Manager to join Team Snap’s growing Proactive Trust & Safety Operations team! You will have both people management and individual contributor responsibilities, including day to day management of Snap’s proactive harm and abuse detection work, including associated tooling and metrics; managing other operations team members working on proactive detection; and directly contributing to the development of Snap’s proactive detection systems. Apply here
TikTok-Payment Fraud Solutions Product Manager - USDS: Governance and Experience is a global team responsible for ensuring that our platform provides a safe, welcoming, and enjoyable experience for their Merchants, Creators and all their community. Apply here
Twitch-Trust & Safety Communications Manager:Twitch is looking for a creative communicator who is passionate about community health & safety and has a track record of telling compelling and complex stories to lead Twitch's Trust and Safety communications. You will be responsible for developing key messaging and narratives, and identifying storytelling opportunities to build awareness of Twitch's policies, products and milestones to many different audiences. Apply here
Uber-Product Counsel, Payments: You will work closely with the Payments Legal Team on payments and financial services legal matters for Uber and its entities in the United States, Canada, and other countries as assigned; Advise Uber’s product and tech teams on the development and operation of payments and financial service products across diverse regions and lines of business Apply here
Conclusion
The surge in technology industry layoffs is a result of a challenging economic environment and the rapid evolution of the industry. The impact of the layoffs is significant, both for the workers who’ve lost their jobs and for the economy as a whole. It’s essential that we support and invest in technology workers, to help them remain relevant and valuable contributors to the industry and the economy. If you’ve been directly impacted, by updating your resume, networking, taking advantage of available resources, and staying positive, you can find a new opportunity and move forward with your career. Want to stay up-to-date on the latest career opportunities in the industry? We've created a one-stop-shop for industry jobs which we'll update every Thursday. Make sure to bookmark the page.