The tech industry has been hit hard by mass layoffs, with over 263,000 job losses recorded in 2023 and more than 75,000 job losses in 2024 so far. Despite blockbuster earnings from companies like Alphabet and Microsoft, the focus has shifted from growth to profitability, leading to a wave of job cuts. Jeff Shulman, a professor at the University of Washington's Foster School of Business, believes that layoffs have become the new normal in the industry.
While tech layoffs continue to plague the industry, the overall labor market remains strong. The U.S. economy added 303,000 jobs in March, surpassing expectations, with the unemployment rate dropping to 3.8%. However, the tech layoffs have prompted many workers to seek opportunities outside of the industry. According to Handshake, job applications from tech majors to internet and software companies have decreased by more than 30% between 2021 and 2023.
The prevalence of mass layoffs has tarnished the image of the tech industry as a dream job for many. Workers are now questioning whether pursuing a career in tech is worth the risk of potential job insecurity. Eric Tolotti, a senior partner engineer at Snowflake who was laid off from Microsoft, advises job seekers to keep their options open and be realistic about the challenges in the industry.
One of the key factors driving job seekers away from the tech industry is the perceived lack of stability. The increasing number of layoffs in big tech companies has created a sense of uncertainty among students and graduates. Many are now looking for roles in industries with more consistent job security, leading to a decline in applications to tech companies.
The ongoing tech industry layoffs have had a profound impact on job seekers, causing them to question the once-glowing reputation of the industry as a desirable career path. As companies prioritize profitability over growth, workers are being forced to reassess the risks and rewards of pursuing a career in tech. It is clear that stability and job security are now at the forefront of job seekers' minds, potentially reshaping the future landscape of the tech industry.