Despite the exceptional profits of giants such as Alphabet And Microsoftlayoffs continue to ripple through the tech industry.
Layoffs.fyi, a platform tracking job cuts in the tech sector, recorded more than 263,000 job cuts in 2023 alone. As of April, more than 75,000 jobs had been lost in the sector in 2024 .
“So instead of rewarding growth that we saw (tech companies) pursue years ago, now they’re rewarding profits,” said Jeff Shulman, a professor at the University of Washington’s Foster School of Business. . “So the layoffs have continued. People have gotten used to it. Unfortunately, it looks like layoffs are going to become the new normal.”
Even as mass layoffs in the tech sector continue, the job market still appears strong. The US economy added 303,000 jobs in March, well above the Dow Jones estimate of an increase of 200,000, while the unemployment rate fell slightly to 3.8%.
Layoffs in the tech sector have prompted new workers to look for other opportunities, according to Handshake, a free job board popular with college students and graduates. The share of applications from technology majors submitted to Internet and software publishers fell by more than 30% between November 2021 and September 2023.
“Part of the reason is that stability is a very important factor in students’ decisions about the types of jobs they apply for and the types of jobs they accept,” said Christine Cruzverga, director of educational strategy at Handshake. “They watch the news headlines and pay attention to all the layoffs that are happening at big tech, which makes them unstable.”
Mass layoffs have eroded the tech industry’s luster, which is why workers are wondering if getting a job in the tech industry should still be considered a “dream job.”
“For people who are looking for… a dream job in tech, I think you need to keep your options open and be realistic,” said Eric Tolotti, a senior partner engineer at Snowflake, who was laid off from Microsoft in 2023. “Don’t just focus on one business and feel like you have to go into that business because it’s the dream.
Watch the video to learn about the feelings of tech workers, considerations for future big tech employees, and more.
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