The end of March is here, and so far, over 200 companies have laid out close to 56,000 employees this year. Perhaps the biggest round of layoffs this month was carried out by American tech giant Dell with its decision to reduce its global workforce by over 6,000 employees.
Of course, Dell isn’t alone – Apple, IBM, and Ericsson also slashed jobs this month. Most of these corporations cited similar justifications for their move. The month of January saw as many as 121 companies laying off 34,007 employees, while February saw a slight decline, with 74 companies sacking 15,379 of their staff.
Adding to the ongoing woes, several studies indicated greater anxiety among professionals in the US. A recent report by Authority Hacker claimed that as many as 55 per cent of workers are increasingly worried about potential job loss in 2024. Professionals working in IT-Services and Data (89.66 per cent) and Software Development (74.42 per cent) are said to be experiencing the highest levels of anxiety related to job security.
In this article, we try to delve deeper into the causes, reactions, and some expert opinions.
Turbulent times
The tech world is undergoing a crisis with companies trimming headcounts regardless of their size. Unsurprisingly, uncertainties and vulnerabilities of working professionals have come out in the open. For most employees who have been sacked, no amount of justification from their respective companies is offering any solace. Furthermore, the pain of sudden change and the search for new means is a long winding road.
Friday was an unforgettable day for Adam Dempsky – after having spent over eight years at Ubisoft, he was laid off. Dempsky was serving as the Associate Director – Global Creator Market & Revenue at the time of layoff. After over eight years at Ubisoft, the news of his role’s termination amid company layoffs hit him hard. “It was a deeply saddening moment, as Ubisoft has been more than just a workplace to me – it’s been a place where I’ve poured my passion and dedication into every project,” he wrote in his long LinkedIn post.
Despite the setback, Dempsky remains proud and optimistic. In his post, he said he was ready to channel his extensive experience into new ventures. Dempsky is among the millions who have recently lost their jobs owing to the overhaul happening in the tech industry.
Lessons learned
Similarly, another software engineer, Iman Far, took to his LinkedIn to share about his laying off and some lessons he learned. “My time as an Engineering Manager/Tech Lead at Best Buy Health has come to an end due to a position eliminating and shifting business priorities. Unfortunately, this has also been the case for many other valuable colleagues of mine,” Far, who was serving as a senior software engineering manager at Best Buy, said.
The key lessons shared by Far include the importance of inspiring and understanding team members as unique individuals, the need for building modular, lightweight applications for agility, and viewing layoffs as faultless shifts in economic priorities. These insights highlight the value of tailored leadership, flexible development practices, and a forward-looking attitude amidst changes.
The long wait
As if job loss is hard to come to terms with, thousands are yet to secure a job. For some, they have been out of work for months with no respite from hiring managers or employment agencies. Chris Williams, a graphic designer based out of Atlanta, was laid off from his last full-time job sometime in the beginning of 2022. Shortly after, he experimented with freelancing and volunteering for non-profit. Although following his volunteering gig, Williams said that his interview callbacks increased. However, none materialized into offers. “The feedback (or lack thereof) has been disheartening. It’s frustrating when they discount my volunteer work as not counting as real-world practical experience,” he said in his LinkedIn post.
“Despite rewriting my resume, adding quantifiable metrics where possible, updating my portfolio, and reaching out to hiring managers, nothing has materialized as it’s like shouting into the void, hoping for a response,” read his post.
Krystal Small, who worked as a recruiting coordinator with ChowNow, took to her account to share her anguish and express her gratitude. “Reflecting on my tenure at ChowNow, which was far more than just a job to me, I am deeply saddened by the news of my layoff and the close of this fulfilling chapter. The opportunity to work with the most incredible team and colleagues has been a highlight of my career, and saying goodbye is truly heart-wrenching,” she wrote. Small said that she was filled with gratitude and was looking forward to the future.
A new chapter
Layoffs are also helping add a new dimension to careers for some. Dylan Hardman, a UI/UX designer, who was working as a web designer, is now looking forward to teaching English as a foreign language. His new career choice was not planned. Hardman, in his LinkedIn post, mentioned the complexities of navigating through layoffs in the tech industry.
“Looking for work has been difficult in the last year. With all the layoffs going on in the tech industry, it seems almost impossible to land a job as a UX designer, as I intended. Although not my original plan, I decided to take the time to look into other avenues in the meantime. I’m happy to share that I’ve obtained a new certification: Teaching English as a Foreign Language from International TEFL Academy! I plan to go abroad and teach English for a bit in order to give me the opportunity to explore the world,” Hardman wrote.
What experts say
Despite recent tech layoffs, the IT job market remains strong. The most common reasons for layoffs are economic factors and companies refocusing their hiring needs. Regardless of the economic realities, demand is seemingly high for skilled IT professionals, especially in areas like cybersecurity and software development. The job market is shifting with growth outside Silicon Valley and in smaller businesses.
“Employees faced with these uncertainties certainly have a lot to bear with, especially considering that the severity compensation varies. But that said, tech talent is always in demand. And at present, people skilled with generative AI, machine learning, data analytics, and other emerging technologies can branch out and explore opportunities in companies that aren’t just known for their technological services. With digital innovation becoming the norm, tech talent can find a place with sectors such as retail, manufacturing, education, automotive, process industries, infrastructure, and digital transformation service providers,” said Mukesh Gandhi, founder and CEO of Creative Synergies Group.
For most tech companies, layoffs may seem unavoidable. But many believe that there could be ways to mitigate this crisis. Tech firms can likely circumvent layoffs with planning: revenue streams, workforce, costs, training, and clear communication.
“Tech companies can adopt several strategic measures to navigate challenging times and avoid or mitigate layoffs in the future. Key strategies include diversifying revenue streams, agile workforce planning, continuous cost optimization, employee retention, upskilling programs, scenario planning, transparency in communication, a customer-centric approach, exploring new markets and geographies, collaborating with ecosystem partners, and maintaining a long-term term vision,” said Suvarna Nikam, Senior Vice President & Global HR Head at Visionet.
Nikam added that these strategies when implemented thoughtfully, enhance a company’s resilience and minimize the need for layoffs. “While no strategy guarantees complete immunity from economic uncertainties, proactive planning contributes to sustained growth and stability.”
Looking ahead this year, the tech industry faces an unparalleled crisis. However, despite these challenges, the sector remains resilient with continued demand for skilled IT professionals. It seems upskilling, and planning can aid employees, while organizations need to prepare themselves better for unforeseen economic situations to wade through these troubled waters.
