In the wake of rapid innovation and growth, a career in tech has long been considered a wise choice, offering high salaries, thrilling opportunities and a relatively secure future. However, recent headlines have been flooded with news of tech layoffs, leaving aspiring tech professionals to question their own digital destinies.
What’s happening in the tech industry?
2023 has seen the highest number of layoffs in the tech industry since the dot-com bubble more than two decades ago. In the US, four of the biggest tech giants – Meta, Alphabet, Amazon, and Microsoft – have cut 50,000 jobs. Meanwhile, closer to home, Atlassian has laid off around 500 employees.
Here are the four key reasons why:
-
- Pandemic-induced hiring spree: The tech industry’s hiring frenzy during the pandemic resulted in a surplus of underutilised talent. Now, we are returning to a “new normal.” Ironic, right?
- Strategic shifts: Companies like Atlassian are undergoing a “rebalancing” to prioritise growth areas such as cloud migrations, IT service management, and enterprise customer services.
"We’ve made hard calls to reduce our investment in specific areas, in order to reinvest in others. This is different from a financially-driven reduction, where you would look to make 'broad-based cuts' – for example, a 10% cut equally distributed across every organisation within the company. This is not what is happening here."
Atlassian will be cutting employees in areas like talent acquisition, program management, and research and insights.
-
- Automation: Automation in HR and other departments reduces the need for certain roles, leading to workforce reductions.
- Cost reductions: Companies are decreasing their headcount, often targeting those with longer tenures and higher salaries, due to rising interest rates and broader economic uncertainty.
What does this mean for aspiring tech workers?
In short, jobs at pure tech companies will be harder to find and secure. An excess of talent and fewer job openings mean that competition will inevitably increase.
However, it’s important to remember that the tech industry is vast and dynamic. Google and Atlassian represent a vocal minority in the context of tech-skilled employment, as nearly every industry now relies on technology in some capacity. This means that tech professionals are needed across a wide range of sectors, from finance and healthcare to retail and manufacturing.
As a result, the demand for tech skills extends far beyond Silicon Valley and well-known tech giants. This broader landscape of tech employment presents ample opportunities for aspiring tech workers to find rewarding careers in diverse industries.
To do so…
Be dynamic and flexible.
- Your first job in tech may not be at a tech company. Focusing your employment efforts toward companies and industries that are “off the beaten track” is one way to get a foot in the door.
Develop transferable soft skills.
- While technical expertise is essential, soft skills like communication, teamwork, and adaptability are also vital for success in the tech world. Invest time in improving your interpersonal skills, as they can set you apart from other candidates.
Build your personal brand.
- Cultivate an online presence that showcases your skills, interests, and achievements. Use social media platforms like LinkedIn, Twitter, and personal blogs to share your thoughts on industry trends, engage with other professionals, and demonstrate your expertise.
Seize the opportunity to find a mentor.
- Seek out experienced professionals in your field and learn from their experiences. A mentor can provide valuable insights, guidance, and support. Given the recent layoffs, there should be plenty to choose from.
Lastly, invest in quality education that equips you with technical skills.
- This is where Holberton comes into play. Project-based learning, peer learning, and soft skill development are all in place to get aspiring software engineers job-ready. The skills learned at Holberton are transferable across industries, countries, and cultures.
So, to code or not to code? The answer is clear: embrace the opportunities that technology presents and be prepared to adapt and grow. The tech industry may be experiencing a period of turbulence, but those who can ride the wave will find themselves in a world of possibilities.
How will tech lay-off's affect career starters in 2023?