Layoffs continue to ripple through the tech industry, even as giants like Alphabet and Microsoft generate huge profits.
Layoffs.fyi, a platform that monitors layoffs in the tech sector, recorded more than 263,000 job losses in 2023 alone. As of April, the industry had lost more than 75,000 jobs by 2024.
“So instead of rewarding the growth that we’ve seen; [tech companies] “Years ago everyone was pursuing it, but now it’s rewarding profits. And the layoffs continue,” said Jeff Schulman, a professor at the University of Washington’s Foster School of Business. he said. People have become accustomed to them. Unfortunately and sadly, it appears that layoffs are becoming the new normal. ”
Despite continued large-scale layoffs among engineers, the labor market remains strong. The U.S. economy added 303,000 jobs in March, well above the 200,000 increase expected by the Dow Jones, and the unemployment rate fell slightly to 3.8%.
According to Handshake, a free job site popular with college students and graduates, tech layoffs have prompted new workers to seek other opportunities. The proportion of job applications from tech giants submitted to internet and software companies fell by more than 30% from November 2021 to September 2023.
“One of the reasons this is happening is that stability is such a huge factor in students’ decisions about what kinds of jobs to apply for and what kinds of jobs to accept. ,” said Christine Cruzberga, Handshake’s chief education strategy officer. “They’re watching the news headlines and paying attention to all the layoffs that are happening at big tech companies, and it’s making them feel erratic.”
With mass layoffs tarnishing the industry’s luster, workers are questioning whether a job in the tech industry should still be considered a “dream job.”
“I think people pursuing dream jobs in technology should keep their options open and be realistic,” said Eric Trotti, a senior partner engineer at Snowflake who was fired from Microsoft in 2023. he said. He focuses on one company and feels he has to join that one company because it is his dream. ”
Watch this video to learn about tech worker sentiment, considerations for aspiring Big Tech employees, and more.
