Whether you are an independent software developer looking for a new job or a small business owner who depends on your local tech team to provide the services you need, layoffs make you wonder about the future. This article discusses the reasons behind the many recent tech layoffs, and how smaller firms and workers should prepare for change.
Post-pandemic corrections, AI-driven budget shifts, and skills realignment are some of the reasons why tech companies are laying off employees in 2024. These layoffs are not a sign of impending doom, but a reset to address slowing growth, higher costs and tighter profit margins.
Some tech companies over-hired during the pandemic, hiring to capture demand for remote work, e-commerce, and digital transformation. Now that things are returning to normal, these extra roles no longer fit. The good news is that downsizing frees up resources to invest in the right areas.
For example, Microsoft recently announced a round of layoffs that included software engineering and product management roles. In addition, the company is investing in AI. In the meantime, it needs to balance those investment priorities with its existing workforce needs.
If you are a software engineer, a product manager or another role that is impacted by these layoffs, look for opportunities at smaller firms and start-ups. These smaller companies can leverage the skills and experience you have gained at larger technology organizations, while giving you room to grow as the market returns to full strength.