Layoffs in Tech: What to Expect and How to Thrive in 2024

In a rapidly changing IT world, everything has recently changed. And we’re talking about tech layoffs. You probably heard that many IT companies and IT giant companies are cutting off tech jobs, and you’re not alone. Did you know that 260, 000 tech workers lost their jobs in 2023? The number of layoffs is even more than during the 2008 financial crisis! The situation has become even worse since November 2023. And more layoffs are about to come in 2024. In this article, you’ll find the reasons for tech layoffs, predictions for 2024, and ways to roll with the changes.

Reasons for layoffs in tech

In recent years, IT companies have been struggling with not getting enough money from their investors to pay workers. So, as a result, they have to be very careful with their spending and saving money. This situation led to letting people go, as, sadly, salary is the biggest cost for companies. They had no choice, but to downsize the workforce. So, cost management, overstuffing during a pandemic, and challenging markets became the reasons for such layoffs. And one more reason is the rise of AI, replacing some jobs or decreasing their responsibilities.

To understand the problem better, let’s take a look at some statistics and giants in the market:

• Recently, Dell, an American technology company that develops, sells, repairs, and supports computers and related products and services, announced letting go of about 6,000 people. The reason is the reduction in computers, leading to an 11% drop in revenue.
  
• During the pandemic, such companies as Amazon and Meta were hiring a lot of workforce to deal with the increased service usage. But the situation has changed and the had to lay off some of their employees.
  
• German company, SAP, is planning to lay off around 7% of their employees, which is a big number, as they want to use AI more in their work and utilize clouds to expand their business.

Predictions and ways to overcome layoff in 2024

If we take a look at the ongoing situation, it becomes clear that layoffs will continue in 2024. And what about challenges that people meet and ways to cope with them? Here are some of the problems and opportunities in 2024 during global layoffs:

• Employment became more difficult: As layoffs continued, it became harder to get and pass the interview, as the amount of candidates increased.
• Salaries have dropped, but responsibilities are the same: It might be connected with the increased amount of developers, especially junior developers, as until 2023 the job of developer was highly paid and had fewer perks than they used to have.
• Tech job recovery: Slowly but steadily, tech jobs started to recover. Still, companies struggle with financial problems and are cautious about hiring.
• Skills in demand: As the market and IT area continue to grow and expand, they have begun using and prioritizing new technologies, such as AI, cloud computing and cybersecurity. So, job seekers need to adapt to the changing market and technologies to be comparative candidates.
• Remote work: Such a tendency offers a wide range of jobs, making employment a bit easier.

Adapting to Change

Even though, changes are inevitable and the job market is changing, tech jobs are still in demand. People just need to adapt, as changes in the market always create new possibilities and new job positions. At Introduct, we adapt to new technologies and create new possibilities for people who keep up with the times.

Now, understanding the current market and its struggles, it’s possible for job seekers to adapt to changing reality and make the right choices when choosing a new job position.