After a hiring spree in the tech industry during the COVID-19 pandemic, companies like Amazon, Meta, Twitter and more are now slapping layoffs on their employees. Whether it’s due to an economic slowdown or simply trimming costs, it appears the wave of layoffs is here to stay for the time being.
The news of mass layoffs has taken many people by surprise. After all, the tech sector is usually thought of as a career-proof field where high salaries are rewarded for top talent. But in reality, many of the jobs are not in high-demand anymore.
In fact, tech workers are now competing with other industries for the same positions – which means they have to accept lower pay offers. It’s a situation that many tech workers are not happy about, and it has prompted many of them to look for new opportunities elsewhere.
Despite the slew of layoffs, most laid-off tech workers are finding jobs soon after they start their search. The labor market is tight, and other companies are trying to scoop up skilled workers from the slashed tech companies.
But some experts are arguing that the reason why there are so many layoffs is because technology companies are simply recalibrating their business models. Many of them were expanding and hiring at breakneck pace during the pandemic, bringing in record profits. But as the fever wore off and habits changed, it became apparent that they had overbuilt capacity to handle demand, which is now waning. This has caused investors to put pressure on tech giants to rein in spending and take headcount-reducing measures.