Tech companies are laying off employees at an unprecedented rate. Some of the most notable names include Google, Facebook, Meta, Amazon, Twitter, Zoom and Elon Musk-owned Tesla. These layoffs come after a decade-long era of Big Tech pampering where workers were offered top salaries and perks in exchange for their work.
The overzealous hiring spree that accompanied the COVID-19 pandemic resulted in many technology companies having more people than they could afford. Then the market dipped and suddenly demand for digital products dwindled, forcing companies to trim staff and make cost-cutting decisions.
Historically, tech companies prioritize cutting non-essential roles like entry-level positions and contractors first. However, with automation and AI tools boosting productivity and making certain jobs obsolete, more mid-career professionals face the prospect of being laid off. This is especially true for those who haven’t diversified into other industries and have built careers at one tech company.
Another warning sign that a company is getting ready to cut staff is when projects that were previously prioritized start to be put on hold. This is typically done to reduce expenses and can be a precursor to layoffs.
Tech workers can’t do anything to avoid being laid off but they can prepare for it. They can start by updating their skills and looking for opportunities in other industries that still need tech talent. Upskilling in areas like artificial intelligence, cybersecurity and cloud computing can help them find a new job if their current company is getting rid of them.