Tech layoff tracker Layoffs.fyi recently revealed that 200 tech-related companies laid off nearly 60,000 employees in 2023. And we have just started the second month of the year.
Unfortunate as this event is, Steve Johnson of News AKMI said this is just a pullback from the vigorous hiring of companies during the pandemic.
2020’s global pandemic lockdowns made people turn toward the internet, software applications, and remote work arrangements. This was a field day for big tech companies as their profits soared.
However, companies also have to expand their workforces to meet consumer demand.
Enter the war for talent and the hoarding of workers. Amidst the Great Resignation, recruiters realized that if they didn’t hire and onboard people quickly, they’d lose out to their competitors.
Employers also kept an eye on their employees to not lose them to other companies.
However, now that we are on the brink of a possible recession, the voracious hiring rate is no longer sustainable. Unfortunately, the go-to solution is to let go of some people — which is what is happening now in the tech industry.
Not all hope is lost
Although 60,000 laid-off workers in just the first month of the year may sound terrible, we also have to emphasize that people find re-employment relatively quickly.
The move for digitalization and technological development caused companies — even those outside the tech sector — to need tech professionals.
In a recent survey by employment marketplace ZipRecruiter, 80% of laid-off tech workers revealed that they found new roles within three months of beginning their job search.
At the same time, about 40% of previously laid-off tech workers found jobs less than a month after they began searching.
These results show that despite the massive layoffs in the tech industry, its employees are still thriving in the global job market.