Despite all the high-profile headlines about tech layoffs, the number of companies cutting staff may have fallen at the end of 2022.
According to the crowdsourced layoffs.fyi, the number of tech-related layoffs dipped significantly between November and December. Check out the chart:
What’s behind these fluctuations? Much of it seems to hinge on when the biggest of the Big Tech companies unleash their rounds of massive layoffs; for example, autumn saw huge companies like Meta cut thousands of workers. (Numerous smaller startups also cut staff in October and November.)
When you break tech layoffs down by industry, consumer and retail have taken some of the biggest hits in 2022, well ahead of finance, transportation, education, and other segments—reflecting executives’ widespread fears over a pullback in everyday consumer spending. As companies examine their budgets for savings, they often decide to cut away at expenses such as cloud-based apps and services, which impacts companies such as Microsoft, Amazon and Salesforce that sell those business-y cloud products. In theory, no company is safe.
The layoffs aren’t over yet—Salesforce just announced it will cut 10 percent of its workers and shut down offices. January may see another spike in employee cuts, or it could moderate after the autumn spike. Keep in mind that the overall tech unemployment rate remains low, as companies in multiple industries continue to hire.
For managers and team leaders with the budget, widespread layoffs can create opportunities to finally secure the talent you need. However, hiring workers who’ve just experienced a layoff also takes some finesse: according to BizReport’s 2022 Layoff Aftermath Survey, 60 percent of layoff victims are less likely to trust their next employers. Providing transparency, open communication, and support is always key, especially for new employees who’ve been through some trauma.
Whatever the future holds in store, keep in mind that technology professionals with the right mix of skills and experience—especially in specialized areas such as machine learning and A.I.—will continue to find opportunities with an array of companies. As we head into 2023, make sure your resume is up-to-date, and you’re positioned to effectively negotiate for the jobs, perks, and benefits you want.