Despite blockbuster revenue from giants like alphabet And MicrosoftLayoffs proceed to occur within the tech industry.
Layoffs.fyi, a platform that monitors job losses within the tech sector, recorded greater than 263,000 job losses in 2023 alone. As of April 2024, there have been greater than 75,000 job losses within the industry.
“So instead of rewarding the growth that we've seen [tech companies] “Everyone pitched in years ago, and now they’re rewarding themselves with profit,” said Jeff Shulman, a professor on the University of Washington’s Foster School of Business. “And so the layoffs continued.” People got used to it. Regrettably and sadly, it seems that layoffs might be the brand new normal.”
Even as mass tech layoffs proceed, the job market still appears to be strong. The U.S. economy added 303,000 jobs in March, well above the Dow Jones estimate of 200,000, with the unemployment rate falling barely to three.8%.
According to Handshake, a well-liked free job site for college kids and up to date graduates, layoffs within the tech sector have led recent employees to search for other opportunities. The proportion of technology degree applications submitted to web and software corporations fell by greater than 30% between November 2021 and September 2023.
“Part of the reason is that stability is such an important factor in students' decisions about what types of jobs to apply for and what types of jobs to accept,” said Christine Cruzverga, chief education strategy officer at Handshake. “They look at the headlines in the news and pay attention to all the layoffs that are happening in Big Tech, and that makes them feel unstable.”
Mass layoffs have dulled the tech industry's luster, leaving employees wondering whether getting a job in tech should still be considered a “dream job.”
“For the people who are looking for … a dream tech job, I think you should keep your options open and be realistic,” said Eric Tolotti, a senior partner engineer at Snowflake who was laid off by Microsoft in 2023. “Not easy.” Focus on one company and feel like you’ve gotten to get into that one company since it's the dream.
Watch the video to learn in regards to the perspectives of tech employees, considerations for aspiring Big Tech employees, and more.
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