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With nearly 50,000 tech layoffs so far in 2022, tech workers have reason to worry. During the first year of the pandemic, tech companies added workers at a record pace. Yet as economic fears mount, these same companies are looking to cut staff and cut overhead.
What lessons can we learn and how do these cuts affect workers? This massive swing of the pendulum shows the risks of growing too fast. And it’s not all bad news for tech workers.
How tech layoffs affect the industry
Tech layoffs have had a ripple effect across the industry. Those workers who are lucky enough to keep their jobs often face increased workloads and pressure to perform. This can lead to overwork and lack of job satisfaction. Those who lose their jobs often find it difficult to land a new job due to the highly competitive nature of the tech industry.
The result can be financial instability and loss of confidence, affecting both laid-off workers and those who remain employed. Workers in both fields are now less likely to have full confidence in an employer’s ability to keep them on the payroll during tough times.
The Tech Workforce Pool and Remote Work Options
The tech industry is dealing with multiple forces at once. Tech companies are voluntarily laying off workers. At the same time, tech workers, along with workers in most industries, are becoming much more selective about where they choose to work.
While tech companies may complain about shrinking workforces, the reality is that they’re not doing what’s necessary to attract and retain high-quality workers. Today’s workforce is looking for a company that treats its employees like humans, stands up for what’s right, and gives workers the flexibility to work remotely.
While this situation is not good for tech workers, there is a silver lining: the rise of remote work has created more opportunities for laid-off tech workers. With more companies embracing remote work, tech workers simply have more employment opportunities.
The dramatic rise in remote work has also led to the creation of new job platforms that specifically cater to remote workers. These platforms make it easy for tech workers to find companies looking to hire remotely, which may include these startups.
Turning the tables on the funds
As a result of these changes and with tech companies appearing willing to lay off large numbers of employees, tech workers have an opportunity to turn the tables. While a company that has made you a job offer may run a background check on you, it is important that you do your due diligence and check the company’s termination history.
While you’ll never get absolute job security and past layoffs are no guarantee of future layoffs, it’s best to know what you’re getting into by reviewing a company’s layoff history. Google the company name along with the word “layoffs.” This will bring up any news about layoffs at the company.
Since we’re specifically interested in tech companies, you can also check out websites like Layoffs.fyi, which tracks layoffs at tech startups and companies. This site provides detailed information about each company and allows you to sort by different criteria.
Of course, not all layoffs are created equal. A company that has had to lay off a few employees here and there is not necessarily one you should avoid. On the other hand, if a company has had multiple rounds of layoffs in quick succession, that’s definitely something to watch out for. It could be a sign that the company is in trouble and may not provide long-term stability.
What’s next for the tech industry?
It’s no secret that the tech industry has been through a rough few years. We have seen billions of dollars disappear, huge layoffs and a general loss of confidence in the industry. So what is the future of the tech industry? Will he bounce back after all the recent layoffs?
The short answer is yes, the tech industry will bounce back. In fact, it is already beginning to do so. We’re seeing companies invest heavily in new technology and software, which is creating a lot of new jobs, albeit at a slower pace than a few years ago, which may mean tech companies have learned a thing or two. stuff.
Of course, there are still some challenges that need to be addressed. Many companies still struggle to find the right balance between growth and profitability. And there is also a lot of concern about the impact of political uncertainties on 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 have to do is take a deep breath. It’s normal to feel overwhelmed when you suddenly find yourself out of a job, but it’s important to keep a cool head. Remember that 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 have little experience, now is also a great time to volunteer or do an internship so you can add it 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 technology. Start by reaching out to friends, family, and acquaintances who work in the industry and see if they know of any openings. You can also attend industry events and meetings or simply connect with people online through forums and social media groups. The more people you meet, the better your chances of getting a new job.
Consider becoming self-employed
If finding a new full-time job seems like too much of a challenge right now, another option is to be self-employed. There are plenty of opportunities for freelancing in the tech industry, so this could be a great way to get a foot in the door while also earning an income. And once you’ve built up a client base, it’s much easier to find full-time work in the future or keep doing your thing.
The tech industry may have had a rough few years. While some of that was self-imposed by tech companies, tech industry workers have skills that are in high demand. Take advantage of those, tap into your network, and you just might find yourself in a new role at a company you enjoy, working from a place you love.
Ayesha Whyte serves as chief personnel officer and legal counsel for various companies through her firm, Dixon Whyte LLC..
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