The Rising Layoffs in Tech

Headlines and flash news all over the Internet have raised this specific issue. You might have heard, seen, or experienced it for yourself on the recent wave that has been rising in the tech industry worldwide. So, what is happening behind these mass resignations and quitting specifically, the tech industry?

It’s no longer surprising that tech giants such as Meta have layoffed more than ten percent of its employees worldwide, followed by Google preparing to lay off ten thousands of its low performing human resources, and Elon Musk just took over Twitter by firing almost half of its workforce and disbanding several important departments. For the past few months, employees from major tech companies are facing a meltdown from the sudden and unannounced layoffs that happened all at once. And they’re not stopping any time soon as “big techs continue to downsize.”

From employees’ perspective, this devastating news has brought a huge impact in their lives as most happened unannounced and without proper notice. Not to mention poor performing workers, but skilled resources and executives are also a victim of this great downsizing happening worldwide. According to TrueUp’s tech layoff data, there were 1138 rounds of layoffs at tech companies globally affecting 182,605 people. However, overall layoffs are still relatively low compared to the pandemic era – but still this rising trend is the talk of the town.

But the most important question is, why?

Tech industry is an important contributor to almost 14% of the worldwide economy in 2021 and this number is predicted to increase in near time. It accounts for most establishments, jobs opportunities, innovations, and income for people worldwide. When the global economy shows early gloomy signs during the second half of the year, many tech companies have taken the matter and react faster to the incoming recession. And for some, they have started to cut expenses, re-arranging budgets and predict the next move.

Tech companies have flourished and marked their importance on the industry and market these past few years but many believe “the bubble burst too soon”. As we’re entering the global recession next year, signs of global economic turbulence have hit most tech companies including a slowing worldwide economy, high inflation and rising interest rates, supply chain issues, and high costs. All led to tech companies having slow revenue growth and spending on hold – including cutting people out and freezing new hires.

Hence, how are the tech industry growing in the midst of mass layoffs?

In addition to economic uncertainty, decrease in overall activity and reduction in demand, tech companies are forced to take serious measures from inside. Surprisingly, companies remove massive headcounts in preparation to grow even aggressively to weather the recession. Cutting down human resources and excessive workforce helped many tech giants to strategize and shift their focus on the “digital help”. Enterprise information and technology is predicted to grow over the next year as most companies use “tech to battle recession”. Companies in the industry will spend heavily on cloud infrastructure and software-as-a-service (SaaS) applications as the integrated reliable systems amidst the unstable condition. Hence, explained why labors are removed to add in another tech solution.

While jobs in tech will continue to recover and grow, mass layoffs are still going loud. In relation to battle recession, many companies rely on their needs to have a digital presence or risk being outdone by competitors. And in times like these, adapting to global changes and identifying challenges at an early stage gives companies a competitive advantage to find the right solution. 

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