Another day, another round of tech layoffs\u2026at least, that\u2019s what it feels like whenever you scroll through your LinkedIn feed.<\/p>\n
Companies like Meta, Alphabet, Microsoft, and Twitter, all made headlines in 2023 for mass layoffs, leaving widespread uncertainty in their wake.<\/p>\n
On the surface, it seems like a bad time to be in tech. And, if you\u2019re currently building your own tech career, you may well be worried about what this all means for you.<\/p>\n
Are the tech layoffs as bad as they seem? What do the big tech layoffs tell us about the state of the industry as a whole? And, most importantly, how do you\u2014a tech professional, current or aspiring\u2014navigate these tumultuous times and ensure your own job security?<\/p>\n
It\u2019s time to shed some light on what\u2019s really going on. In this post, we\u2019ll dig into what\u2019s driving the big tech layoffs and explore what it means for those working in tech.<\/p>\n [GET CERTIFIED IN UX]<\/p>\n Take our Professional Diploma in UX Design course<\/span>\n <\/a>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n Keep reading to uncover:<\/p>\n The state of tech layoffs in 2023\u2014what are the numbers?<\/a> How can you protect your own job security amid tech layoffs? 5 actionable strategies<\/a> First and foremost: what are the actual numbers? Let\u2019s consider the state of the 2022-2023 tech layoffs in terms of cold, hard data.<\/p>\n Since taking over Twitter (currently being rebranded as \u2018X\u2019) in October 2022, Elon Musk claims to have laid off about 80% of its workforce\u2014reducing Twitter\u2019s employee count from 8,000 to around 1,500.<\/p>\n In January 2023, Microsoft announced that it would be letting go of around 10,000 employees\u2014a reduction in headcount of just under 5%.<\/p>\n In January 2023, Alphabet (Google\u2019s parent company) announced plans to lay off 12,000 employees\u2014affecting around 6% of the company\u2019s workforce.<\/p>\n Also in January 2023, Spotify let go of 600 employees\u2014reducing overall headcount by about 6%.<\/p>\n In February 2023, both Dell and Zoom Video Communications, Inc. made significant layoffs, letting go of about 6,600 and 1,300 employees respectively (affecting 5% and 15% of their respective workforces).<\/p>\n In March 2023, Meta let go of approximately 10,000 employees. This was the second round of layoffs for the company, having already laid off more than 11,000 people in November 2022.<\/p>\n Also in March 2023, Amazon and Accenture announced significant layoffs. Amazon, which had already laid off about 18,000 employees between November 2022 and January 2023, let go of another 9,000 employees (about 3% of its workforce). Accenture went public with its plans to lay off 19,000 employees (about 2.5% of its workforce) over the next 18 months.<\/p>\n In July 2023, Microsoft announced further job cuts (on top of its 10,000 layoffs in January). These will mostly affect salespeople and customer success representatives.<\/p>\n That\u2019s how the big tech layoffs have played out since late 2022 and into 2023. Admittedly, the numbers paint a rather bleak picture\u2014but it\u2019s important to consider the context surrounding them.<\/p>\n With that, let\u2019s explore the why behind the data.<\/p>\n Multiple factors are driving the big tech layoffs\u2014and they don\u2019t all necessarily spell bad news for the tech industry at large.\u00a0<\/span><\/p>\n In many cases, the tech layoffs are a result of companies scaling back to \u201cnormal\u201d employee numbers after over-hiring during the pandemic. That, coupled with the general economic downturn and rising inflation rates, means that companies are tightening their purse strings and looking to become more cost-efficient.\u00a0<\/span><\/p>\n While some industries, like travel and hospitality, really suffered during the pandemic, the tech industry flourished. Suddenly, people were doing practically everything online\u2014working, shopping, attending school and university, having therapy, even working out\u2014and the need for technology had never been greater.\u00a0<\/span><\/p>\n To meet the sudden surge in demand, many tech companies hired and expanded rapidly. Meta, for example, nearly doubled their employee headcount between March 2020 and September 2022.\u00a0<\/span><\/p>\n But, as the pandemic subsided, many parts of the world slowly returned to \u201cnormal\u201d, resuming more in-person activities. As such, the demand for tech services has slowed somewhat\u2014at least in comparison to what it was like at the height of the pandemic. Many of the new hires made during the pandemic may now be redundant, with companies making layoffs to return to pre-pandemic staff numbers.<\/p>\n Another major factor is the economic downturn. While we\u2019re not technically in a recession at the time of writing, there\u2019s no denying that we\u2019re facing a period of economic uncertainty.<\/p>\n Inevitably, many companies are experiencing slower revenue growth\u2014and tech companies are not immune.<\/p>\n Speaking about the company\u2019s layoffs in January 2023, <\/span>Microsoft CEO Satya Nadella said<\/span><\/a>:<\/span><\/p>\n As we saw customers accelerate their digital spend during the pandemic, we\u2019re now seeing them optimise their digital spend to do more with less. We\u2019re also seeing organisations in every industry and geography exercise caution as some parts of the world are in a recession and other parts are anticipating one.\u00a0<\/span><\/p>\n I think for us as a global company, we\u2019re not going to be immune from what\u2019s happening in the macro. We will have to also get our operational focus on making sure our expenses are in line with our revenue growth.<\/span><\/p><\/blockquote>\n Alphabet, Google\u2019s parent company who let go of 12,000 employees in January 2023, <\/span>wrote in a staff memo<\/span><\/a> that it faces \u201ca different economic reality\u201d.\u00a0<\/span><\/p>\n Meta CEO Mark Zuckerberg also spoke of \u201ccancelling lower priority projects\u201d and preparing for \u201ca year of efficiency\u201d, saying that he had \u201cunderestimated the indirect costs\u201d associated with these initiatives.\u00a0<\/span><\/p>\n Ultimately, many big tech companies are turning to layoffs as a way to course-correct overhiring, cut costs, and ride out the economic downturn.<\/span><\/p>\n [GET CERTIFIED IN UI DESIGN]<\/p>\n Take our Professional Certificate in UI Design course<\/span>\n <\/a>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n Now for the big question\u2026What does this all mean for people working in the tech industry?\u00a0<\/span><\/p>\n And, if you\u2019re currently working towards a career in tech, is this still a career path worth pursuing or should you rethink?\u00a0<\/span><\/p>\n It\u2019s hard not to feel pessimistic when you read about thousands of tech workers being laid off and about the bleak reality of recessions, rising inflation rates, and the cost of living crisis.\u00a0<\/span><\/p>\n But, the doom and gloom of tech layoffs aside, rest assured that tech is still considered a secure career path\u2014and will be for years to come.\u00a0<\/span><\/p>\n How can we be so sure? Consider the following:<\/span><\/p>\n The general consensus remains: interpret the data and headlines about big tech layoffs with caution. As <\/span>Richard Wahlquist<\/span><\/a>, chief executive at the American Staffing Association, puts it:<\/span><\/p>\n Despite recent headlines involving layoffs at major companies, tech jobs remain among the most in-demand jobs in the labour market.<\/span><\/p><\/blockquote>\n In a nutshell: There\u2019s no need to panic about tech layoffs\u2014tech is still considered a very secure (and very rewarding!) career path.\u00a0<\/span><\/p>\n There\u2019s no guarantee when it comes to job security, and that goes for any career path or industry.\u00a0<\/span><\/p>\n While nobody can make themselves entirely layoff-proof, there are steps you can take to boost your employability and set yourself up for a successful career in tech:<\/span><\/p>\n Let\u2019s put those into action.\u00a0<\/span><\/p>\n This is sound career advice in any job market: keep your skills up-to-date and make sure you\u2019re evolving in line with the industry.\u00a0<\/span><\/p>\n This might mean obtaining a formal certification in your field or taking an upskilling course. If you\u2019re a designer, for example, you might upskill with a <\/span>coding course<\/span><\/a>. Or perhaps you\u2019re seeing a sharp rise in job ads for content designers and want to <\/span>add UX writing to your skill set<\/span><\/a>.\u00a0\u00a0<\/span><\/p>\n Keep an eye on how your industry is moving and what skills are growing in demand. Then, be proactive about learning new skills and adding them to <\/span>your portfolio<\/span><\/a>.<\/span><\/p>\n [GET CERTIFIED IN UX]<\/p>\n Take our Professional Diploma in UX Design course<\/span>\n <\/a>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n AI is another hot topic. Many are concerned that AI is partly to blame for the tech layoffs\u2014and that it will slowly but surely push people out of jobs in the long term.\u00a0<\/span><\/p>\n But, while it\u2019s <\/span>unlikely that AI will completely replace UX designers<\/span><\/a> and other tech professionals, we can\u2019t ignore the fact that it will change how we work. Rather than fearing AI, treat it like any other new tool or trend: learn it, embrace it, and use it to your advantage.\u00a0<\/span><\/p>\n This is especially important as companies seek to ride out the economic downturn and operate more efficiently. If you can use AI to speed up your processes and open up new possibilities, you\u2019ll only add to the value you bring to your company.\u00a0<\/span><\/p>\n For more advice on using AI to your advantage, check out <\/span>this interview with Nick Babich<\/span><\/a>, Principal UX Designer at Brain Technologies.<\/span><\/p>\n They say your network is your net worth. According to some estimates, <\/span>60% of jobs are found through networking alone<\/span><\/a>.\u00a0<\/span><\/p>\n No matter where you\u2019re at in your career\u2014just starting out, facing unemployment, searching for your next opportunity, or perfectly happy in your current role\u2014never stop <\/span>nurturing and growing your network<\/span><\/a>.\u00a0<\/span><\/p>\n A strong professional network offers community, connection, inspiration, and insight. And, if ever the time should come, it will prove extremely helpful for finding your next role.\u00a0<\/span><\/p>\n If you\u2019re a tech professional (or aspiring to be one), you may be inclined to focus your job search on tech companies themselves. But there\u2019s a whole world of opportunity beyond big tech!<\/span><\/p>\n Handshake<\/span><\/a>, an early career community in the US, reports that tech graduates are increasingly applying for jobs in other sectors. Notably, graduates with tech skills are applying for roles within the government, healthcare, and non-profit sectors.\u00a0<\/span><\/p>\n Big tech may be making cuts, but other companies and sectors are thriving\u2014and they all need tech skills. Diversify your job search and be open to opportunities beyond tech companies themselves.\u00a0<\/span><\/p>\n Our final piece of advice is to look beyond the headlines. High-profile, highly visible big tech layoffs don\u2019t automatically spell bad news for the entire tech industry at large.\u00a0<\/span><\/p>\n It can be incredibly disheartening, demotivating, and indeed worrying to read about the mass layoffs. And, while it\u2019s important to keep abreast of what\u2019s happening in the industry, it\u2019s also important to remain realistic and positive.\u00a0<\/span><\/p>\n On the surface, the state of the tech industry may seem rather bleak. But, if you look beyond the headlines, you\u2019ll find that the employment market is still full of opportunity for skilled tech professionals.\u00a0<\/span><\/p>\n The global tech industry is still growing year-on-year, as are jobs in the field. Tech continues to represent a secure, well-paid, and highly rewarding career path.\u00a0<\/span><\/p>\n Want more industry insights?<\/b> Check out <\/span>the state of UX hiring in 2023<\/span><\/a>, discover <\/span>how to recognise UX maturity when job hunting<\/span><\/a>, and uncover <\/span>what hiring managers look for in a UX portfolio<\/span><\/a>. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":" What drove the tech layoffs in 2023 and what does it mean for you? Is tech still a secure career path? 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\nWhat\u2019s driving tech layoffs in 2023?<\/a>
\nHow worried should you be about tech layoffs<\/a>?<\/a><\/p>\n
\nNavigating tech layoffs: the takeaway<\/a><\/p>\n<\/a>The state of tech layoffs in 2023\u2014what are the numbers?<\/strong><\/h2>\n
<\/a>What\u2019s driving tech layoffs in 2023?<\/h2>\n
<\/a>How worried should you be about tech layoffs? Is tech still considered a secure career path?<\/h2>\n
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<\/a>How can you protect your own job security amid tech layoffs? 5 actionable strategies<\/h2>\n
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1. Keep your skill set sharp and relevant<\/strong><\/h3>\n
2. Embrace AI (and make it work for you)<\/strong><\/h3>\n
3. Focus on building a strong network<\/strong><\/h3>\n
4. Diversify your job search\u2014look beyond the tech industry for opportunities<\/strong><\/h3>\n
5. Interpret news headlines with caution\u00a0<\/strong><\/h3>\n
<\/a>Navigating tech layoffs: the takeaway<\/h2>\n