‘It’s an employer’s market’: Tech layoffs may have turned a Big Resignation into a Big Liability

A flood of major tech layoffs has re-upped the dynamic between employers and workers, prompting lengthy job searches and widespread fear and anxiety among many in the industry, workers and executives said.

“After years of workers benefiting from working from home, it’s an employers’ market [and] more jobs with higher pay and benefits,” said Angela Bateman, a job seeker after being laid off by education technology company Osmo in November. “Employers are reaffirming their preference – Disney DIS,
Google GOOGLE,

Meta META,
Apple AAPL,
Snap SNAP,
[are] asks employees to be on site three or four days a week.

On Friday, Alphabet Inc.’s Google, Microsoft Corp. It became the latest tech giant to add to the uncertainty, announcing 12,000 job cuts just two days after MSFT.
He announced that he was cutting 10,000 positions. Two, Salesforce Inc. It joins a long list of companies that have announced layoffs in recent months, including CRM.
Facebook parent company Meta Platforms Inc., Amazon.com Inc. AMZN,
Cisco Systems Inc. CSCO,
Intel Corp. INTC,
HP Inc. HPQ,
Coinbase Global Inc. COINS,
Spotify Technology Inc. SPOT,
and Snap Inc.

For more information: MarketWatch report on tech companies laying off thousands of jobs

As laid-off workers struggle to find new jobs, many executives believe this could encourage people to stay with their current companies. Former Cisco CEO John Chambers sees it this way: Big resignation, has become a Big Commitment where tech workers bounce from one high-paying job to another.

“Career used to be two years in one company. It’s been that way for over a decade,” Chambers, now a venture capitalist, told MarketWatch. “Now the last hired is the first fired. There has been a shift to focus on culture, revaluing employees’ commitment to companies. Circulation drops dramatically.”

But while tech executives envision a renewed commitment to work, rank-and-file workers are seeing increased stress amid job cuts, mandates to work in the office at least three days a week and expectations for higher output with fewer resources. With fewer openings and increased competition, they say they are more likely to stay with their employer and give up the last few years of work rather than embark on a job search that can last up to a year.

“There’s a concern about competing with Big Tech because I think their profile is a ‘safe’ bet for companies that are scared, they’re less willing to take a chance on people who don’t come from certain brands,” said San Alex Gammelgard, a San Francisco-based marketing director who previously worked at TrustedHealth. After months of job hunting, Gammelgard told MarketWatch that he found “pretty much everything closed” since Thanksgiving.

“I see on LinkedIn that a role will have anywhere from 100 to 500 applicants in a week, which is way more than normal, so that shows the impact of the Big Tech layoffs,” he said.

In all, according to Layoffs.ai, more than 56,500 tech jobs — almost all of them in the U.S. — have already been cut this year, and more cuts are coming. According to the consulting firm Challenger, Gray & Christmas, 97,171 jobs will be cut in 2022, which is 649% more than the previous year.

Also read: ‘It wasn’t sustainable or realistic’: Tech layoffs approach Great Recession levels

The sudden purge of tech jobs has raised doubts about employers after years of benefits and a hiring frenzy. According to a survey of 2,162 people at the end of November, 69% of those recently laid off received no support from their former employer, and 60% said they were less likely to trust their next employer. US workers By BizReport.

“Once Meta announced they were laying off 11,000 [in November]others in Silicon Valley soon followed,” Bateman told MarketWatch.

“Muskification” is changing the world view

Layoffs are likely to continue, tech executives warn, as companies cut operations amid declining sales. Workers laid off by smaller firms now face the prospect of competing for jobs with tens of thousands of former Big Tech employees who are now scouting for jobs.

Todd Erickson applied for 70 openings after being let go from the start of the Phase Change Program in October after six years with the company. He heard about only 10 of these cases.

“It’s been a tough few months,” Erickson told MarketWatch. “I did everything that needed to be done, including technical writing, legal work, and web development, and I didn’t develop experience that would be useful in this job market.”

Adding to the frustration, job sites include listings that appear to be nothing more than “fishing expeditions,” non-existent openings by employers looking to find talent unrelated to a specific job. description, said Gammelgard et al.

First reception: Big Tech layoffs aren’t as big as they seem

Schiffer predicts that one result of declining current employment in tech is that some job seekers will have to look for work outside the industry. “The ‘musking’ of downsizing has caused tech companies to rethink human capital deployment,” he said, referring to the steps taken by Elon Musk after buying Twitter in October. “After years of overstaffing, we are in a period of contraction.”

“The story of 2023 is a push for greater value and efficiency,” said Freshworks Inc. FRSH,
CEO Dennis Woodside, Google, Impossible Foods Inc., Dropbox Inc. DBX veteran,
and Motorola Inc.

Last week’s 22,000 Google and Microsoft job cuts “complicated the challenges of tech job seekers who are not developers or programmers,” Eric Schiffer, CEO of private equity firm Patriarch, told MarketWatch. “There’s more pain to come.”

Tech workers may be more needed in non-tech companies

The news isn’t all bad, though. Economic experts say other industries are coveting tech workers and the job market remains strong, with the unemployment rate in December at a decade-low of 3.5%, according to the U.S. Bureau of Labor Statistics’ monthly Survey of Job Openings and Labor Turnover. Labor Statistics. Even Silicon Valley added about 13,000 workers in December, and the unemployment rate was 2% that month, according to an analysis by the Joint Venture Silicon Valley Institute for Regional Studies.

“The other point I’ve been trying to make for two years [was that] the rest of the economy was tech-starved,” Federal Reserve Governor Christopher Waller said at the Council on Foreign Relations in New York on Friday. “They couldn’t get enough tech workers. So, you know, what do you think? Now there’s someone that the economy can hire to do things for the rest of the economy. There are a bunch of tech workers.

He added: “So I think there will be enough redistribution of tech talent across the rest of the economy, unlike some other sectors.”

Damien Daurio, who lost his job at DirecTV last summer, is a Charles Schwab Corp. He found work as a software contractor for SCHW.
with the help of recruiters and placement companies. Daurio said it’s easier to find another job because of her ability to shepherd software projects than it would be for a non-technical position.

Meanwhile, others who recently left their tech jobs see opportunity in the current climate. Donna Estrin left the cybersecurity industry in October and started consulting in November. “My view is that if people are laid off, companies will hire contract workers and not replace full-time workers,” he told MarketWatch. “Companies still need to do the work, so they will need consultants.”

Muddu Sudhakar, CEO of software company Aisera, expects layoffs until at least the first half of 2023, and his company is favoring AI-powered technology to boost hiring.

But not all job seekers are successful. Erickson, who put off knee surgery because she didn’t have full-coverage health insurance, said her outlook was “pretty barren.” “I just reached out to Microsoft,” he said, “but I doubt it will result in 10,000 layoffs.”

MarketWatch staff writer Gregory Robb contributed to this article.

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