In 2008, 65,000 tech employees lost their jobs; this number was mirrored in 2009 according to Challenger, Gray & Christmas only global outplacement and career transitioning firm. By comparison, 965 tech companies laid off more than 150,000 employees this year globally, surpassing the Great Recession levels of 2008-2009.
Notable tech companies, such as Amazon, Twitter, Microsoft and Salesforce have all taken the lead in initiating layoffs amid our current economic climate. As per a MarketWatch report, these layoffs are part of an extensive plan to ensure that they can continue operating within the next three years and beyond. Unfortunately, this means that we can expect further job losses in early 2023.
The Covid-19 pandemic has resulted in an unprecedented number of tech layoffs, with 262,267 job losses since the onset. However, 2022 is proving to be particularly devastating for the sector and early 2023 may even prove worse. Layoffs.fyi’s crowdsourced database revealed that 73k workers have been let go by major companies like Meta, Twitter, Salesforce, Netflix and Cisco just this year alone – a stark reminder of how far reaching its effects are being felt across businesses worldwide.
In the coming days, both Amazon and HP Inc will take part in an international wave of downsizing as more than 20,000 and 6,000 workers respectively are set to lose their jobs from these tech giants. Moreover, Meta has recently announced that it is cutting down nearly 4,000 positions worldwide.
As layoffs become more commonplace in the increasingly volatile tech startup landscape, another trend is emerging. A growing number of LinkedIn members are reporting that offers they have received to join a new employer are being rescinded. Coinbase, for instance, has begun pausing all new hires and is also “pulling some accepted job offers.” The trend to take back job offers exemplifies the turmoil facing the tech sector’s market. Venture capital-backed firms are being hit especially hard as investors abandon risky bets and seek immediate returns.
Resources would still be allocated to technology-related departments, but the strategy would switch for many companies from hiring W2 employees to hiring independent contractors or working with firms that provide staff augmentation. Leading technology organizations will instead leverage high-skilled technical talent, with an emphasis on creating differentiated value for customers and shareholders.
It’s going to be a tough time ahead for those of us recruiting in tech. I’m hopeful this will be a short-lived exercise.
About me
and Sprint Recruiting
I joined the HR industry in 2004 after working as a sales leader in the Financial Services Industry for eight years. After spending his first couple of years in HR trying to fit in, I found my voice. Now I leverage all of the things I once hated about HR to become a consultant and invaluable partner to the businesses I support. I contribute to the HRGazzette and to DataDrivenInvestor on Medium. WARNING: my writing style is raw and in your face, not what you would expect from an HR executive.
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