With the recent layoffs from major tech companies, IT professionals and hiring managers may be feeling concerned. The most recent layoffs across 72 companies brings the total number of displaced employees in 2022 to just over 120,000, according to Layoffs.fyi, a layoff tracker run by tech founder Roger Lee. For more than two decades, the tech industry has been a reliable source of high stocks and high salaries. The last few weeks suggest that we may be seeing a shift in Big Tech and the hiring landscape within it.
The Why Behind the Tech Shakeup
What are the experts saying is the reason for the massive layoffs in Big Tech? There may be a few. It seems as if consumers are returning to pre-pandemic habits with the internet boom fading and offline life picking back up. Companies that hired tech pros during the pandemic to help move operations completely online, now find that their new employees, who are far too many, are also just too expensive.
Additionally, as the economy continues to shudder, digital ad spends in places like Facebook and Google have slowed, which impacts both the organizations who aren’t spending and the companies who gain a major source of their revenue from those ads placed. Plus, interest rates continue to rise, so the cheap-money era of venture capital is on its way out.
The Upside to Tech Layoffs
According to Daryl Plummer, Distinguished VP Analyst and Gartner Fellow, “Uncertainty carries as much opportunity as it does risk.” While there is uncertainty in the short-term, some analysts think the current shake-up in Big Tech could actually be a good thing. Industries in need of technical innovation such as government, retail, manufacturing, health care and education could benefit from the new availability of IT professionals who are now looking for work. Start-up companies who have struggled over recent years to compete with the bigger tech companies can also look forward to talented tech professionals searching for new positions. In the past, these sectors were unable to compete with the salaries and benefits packages offered by the bigger tech companies.
Erik Brynjolfsson, an economist at Stanford University told the Washington Post, “I’m going to take the contrarian view and say that I think this will be good for the rest of the economy. I think the salaries in tech were unrealistic. Now there’s a bunch of really good coders and engineers for the rest of the economy where they are needed a lot more.”
Tech Market Predictions for 2023
How can you seize the uncertainty during this massive shift in the Big Tech landscape? Economists agree that hiring will pick up again once the economy stabilizes and total instability in the Tech industry is not here yet. The Bureau of Labor Statistics is still projecting overall employment within IT to grow 15 percent from 2021 to 2031. They also reported that there were 10.7 million job openings in late September, and nearly 317,000 tech job postings.
According to a report by CompTIA, even with economic uncertainties and societal issues, the tech industry remains a robust choice for business growth and career advancement. According to the latest forecast by Gartner, Inc., worldwide IT spending is projected to total $4.6 trillion in 2023, an increase of 5.1% from 2022.
Hiring managers recognize that technology is a critical component in their business strategy, and it is in a company’s best interest to integrate their IT specialists more deeply into operations. Many hiring managers are reporting that they still have open positions, they just can't find the IT talent to fill the roles. This plight of the hiring manager might shift slightly as new workers enter the marketplace post layoff announcements.
What’s next for IT professionals and the companies still looking to hire them?
At Computer Futures, we know that Big Tech’s recent layoffs may be concerning to IT professionals or hiring managers. In the meantime, we are carefully watching the market and responding to those who are now looking for new positions within the tech industry. With nearly 40 years of tech recruitment experience, Computer Futures is a globally leading specialist technology recruitment company. We create partnerships between businesses seeking talent and highly skilled professionals looking for jobs.
Our IT recruitment and employment solutions are driven by your unique needs. When we partner with a business, our consultants take the time to gain a deep understanding of your organization so that we can develop a tailored and cohesive recruitment strategy. Our consultants are focused on specific areas of IT markets, allowing us to offer truly in-depth knowledge regarding the unique challenges and requirements facing your business.
When it comes to helping highly skilled professionals find a job, our approach is similar. As IT recruitment and employment specialists, we understand everyone is looking for something slightly different from their next role. Our consultants work closely with you to fully understand your skills, experience, and requirements. By getting to know you, we can find a position that’s the right technical and cultural fit, so that you’re fulfilled both professionally and personally.
At Computer Futures, we’re ready to connect top IT talent with the world’s most innovative companies. Contact us today to find your next dream job or your next best hire!