Tech Sector Layoffs Reach Fever Pitch

Tech sector layoffs hit a fever pitch

First, there was talk of the economy slowing, credit tightening, and VC funding drying up. We see this now trickling through to the tech sector as it lays off more and more staff each month.

It was only three months ago that the topic of conversation was about how hot the market was, how audacious salaries were becoming, and how severe the staff shortages were.

How quickly things can change…

 

layoff
Source: https://www.trueup.io/layoffs

Does the tech sector represent Main Street, or is it its own little bubble? Or… If the tech sector feels the heat, then possibly Main Street is suffering even worse.

Doing more with less?

The problem with aggressive layoffs is that the remaining staff are required to do even more with even fewer resources. If the core business wasn’t profitable before, how can a smaller, less-resourced team turn the company around?

Instead of dropping headcount, many companies are turning to offshore staffing for respite. Offshore staff can save 50%-70% on all-in employment costs. So instead of dropping your headcount by 50%, you can maintain the same headcount, maintain productivity, maintain growth, maintain skills, and still save 50% on employment costs.

Moving employment from high-cost places like California to a lower-cost destination like the Philippines enables savvy businesses to remain competitive and in the race.

Typical professional salaries in the Philippines range from $6,000 to $18,000 per year – that’s a far cry from the Silicon Valley salaries.

In the good times, affluent, cash-rich companies can be quick to disregard such incredible opportunities. In the tough times, companies are thinking twice and giving it a shot.

And they are reaping the rewards.

Those that wait too long to slash costs can get caught short.

The question for your business

Is your business prepared for a recession? Are there ways that you could do more with less?

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Philippines United Kingdom Australia United States
Software Developer
$7,221
$39,913
$62,653
$81,994
HR Manager
$9,506
$46,669
$66,518
$78,007
Team Leader
$7,152
$31,174
$45,428
$75,823
Accountant
$5,959
$58,479
$67,190
$72,923
Copy Writer
$4,767
$52,088
$56,600
$62,653
Customer Service
$3,337
$22,137
$29,717
$35,275
Virtual Assistance
$2,285
$39,066
$42,240
$31,797
Select a role to view salaries
Philippines $7,221
United Kingdom $39,913
Australia $62,653
United States $81,994

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About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.