The barrage of pink slips in the tech industry has been rattling, to say the least. The massive layoffs have some questioning whether they should even consider a job in tech at all.
Their concern is understandable. So far this year, more than 93,000 workers in U.S.-based tech companies have been let go in mass job cuts, according to a Crunchbase News tally. This number includes Twilio’s 1,500-staffer reduction, DocuSign’s 680-employee layoff, and Wix’s 370-worker cut.
Many other tech titans, including Amazon and Dell, have also reduced their workforce. Amazon may slash 18,000 jobs this year, many in retail and recruiting. Earlier this month, Dell cut about 6,650 jobs — or about five percent of its workforce.
While the tech industry’s major players get most of the press, smaller tech companies aren’t immune to layoffs.
Why All the Layoffs?
There are lots of reasons, including inflation, higher interest rates, and the economy overall. With the threat of a recession still looming, many employers are nervous about carrying too many expenses. By eliminating positions, companies can cut costs when profits get leaner.
Some companies are cutting jobs due to over-hiring. The need for technology skyrocketed during the pandemic when most things moved online. As some work continues to reset to how it was in 2019, the demand for tech services has declined.
Consider these statements from a variety of tech companies:
Meta: “At the start of Covid, the world rapidly moved online and the surge of e-commerce led to outsized revenue growth. Many people predicted this would be a permanent acceleration that would continue even after the pandemic ended. I did too, so I decided to significantly increase our investments. Unfortunately, this did not play out the way I expected.”
Google: “Over the past two years we’ve seen periods of dramatic growth. To match and fuel that growth, we hired for a different economic reality than the one we face today.”
Microsoft: “As we saw customers accelerate their digital spend during the pandemic, we’re now seeing them optimize their digital spend to do more with less.”
Salesforce: “As our revenue accelerated through the pandemic, we hired too many people leading into this economic downturn we’re now facing, and I take responsibility for that.”
Amazon (1): “As you know, we continue to face an unusual and uncertain macroeconomic environment. In light of this, we’ve been working over the last few months to further prioritize what matters most to our customers and the business. After a deep set of reviews, we recently decided to consolidate some teams and programs.”
Amazon (2): “This year’s review has been more difficult given the uncertain economy and that we’ve hired rapidly over the last several years … Today, I wanted to share the outcome of these further reviews, which is the difficult decision to eliminate additional roles. Between the reductions we made in November and the ones we’re sharing today, we plan to eliminate just over 18,000 roles.”
Spotify: “Like many other leaders, I hoped to sustain the strong tailwinds from the pandemic and believed that our broad global business and lower risk to the impact of a slowdown in ads would insulate us. In hindsight, I was too ambitious in investing ahead of our revenue growth. And for this reason, today, we are reducing our employee base by about six percent across the company.”
It may seem like the sky is falling in the tech industry, but that’s not necessarily the case. If you’re thinking about changing directions, you may want to reconsider.
While the recent tech layoffs are certainly unnerving, it’s still a great time to pursue a job in tech. Here are a few reasons why.
Not All Tech Companies Are Cutting Jobs
Apple has slowed its hiring, but the world’s largest tech company hasn’t announced layoffs yet. Many are applauding CEO Tim Cook for agreeing to a 40 percent pay cut this year after a shareholder vote on compensation.
Other tech companies that have thus far avoided massive layoffs include Cloudflare, Block, Broadcom, AMD, Palo Alto Networks, Crowdstrike, and Box.
Plenty of Companies Are Actively Hiring
This is especially true among small and mid-size tech companies across the United States. These companies are scrambling for full-stack developers, software engineers, data scientists, cloud architects, and other highly specialized tech professionals.
With the surge in layoffs from larger companies, smaller businesses are taking advantage. They’re tapping into talent they may not have been able to access beforehand.
Many Industries Need Tech Talent
When you put in the time and make the investment to become a tech professional like a full-stack developer or web developer, you may envision working at a tech firm.
However, it can pay off to expand your boundaries outside the tech industry. For example, industries like education, healthcare, and government can be ripe with opportunities.
One expert at Robert Half, a global human resource consulting firm, told CNBC that the greatest hiring need in virtually every industry is tech professionals.
Companies need tech talent — they just may not be the companies you initially envisioned working for.
Laid-Off Tech Workers Find Jobs Quickly
Many tech professionals who get let go aren’t sidelined for long. One study shows that 72 percent of laid-off workers found a new job within three months.
It’s undoubtedly stressful receiving a pink slip, but the good news is that many of these laid-off staffers are bouncing back stronger than ever. In many cases, they’re bringing in more money and working at companies that truly value them.
Is This a Good Time to Learn How to Code?
Now is a great time to learn how to code. Coding jobs are projected to grow, and businesses in all different industries need coders. These professionals might end up working in logistics, healthcare, or education, or they may work in government roles.
If you’re excited about working in the tech industry, keep making progress on your goals. Enroll in a Coding Dojo bootcamp or check out our quiz to help you find the right tech path.
Are Bootcamps Still Worth the Money?
A bootcamp costs substantially less than earning a computer science degree from a four-year university. The average bootcamp costs $14,000, while a bachelor’s degree can run from $9,650 to $24,930 per year depending on your residency status.
After graduating from a bootcamp, you can begin your career in the tech industry. You might work as a software developer or cybersecurity analyst. These professionals make, on average, $76,000 and $79,000 annually.
You could also pursue a career as a data scientist. This path could lead to an annual salary of nearly $100,000.
Are Graduates Having a Difficult Time Finding Jobs Right Now?
No, they’re not having trouble finding work — even in these tumultuous times. Coding Dojo graduate hiring numbers remain as they have been for the last several years.
What Is the Outlook For Tech Jobs?
The massive flood of tech layoffs seems nightmarish at the moment, but things may not pan out to be so terrible after all.
Tech jobs are still very much in demand. The Bureau of Labor Statistics projects jobs for web developers to grow 23 percent from 2021-2031, which is much faster than average. This amounts to about 21,800 openings every year, on average, through 2031.
Plenty of industries, including automotive and manufacturing, need developers, software engineers, and other tech professionals.
So, is it still worth considering a job in tech? The answer is an enthusiastic yes.