Despite impressive earnings from industry giants such as Alphabet and Microsoft, layoffs continue to impact the technology sector. According to Layoffs.fyi, a platform tracking job cuts in tech, over 263,000 positions were eliminated last year alone. In just April of this year, more than 75,000 jobs have been lost within the industry. “Now they’re rewarding profit instead,” notes Jeff Shulman, professor at the University of Washington’s Foster School of Business, referring to tech companies that previously prioritized growth over profits. The layoffs continue, and it seems like this trend may become a new norm in the sector.
Despite ongoing mass job cuts within technology, the labor market remains robust with the US economy adding 303,000 jobs in March surpassing expectations of an increase by just 200,000 positions according to Dow Jones estimates, while also experiencing a drop in unemployment rates to reach 3.8%. This new reality is driving graduates and college students who had been targeting the tech sector out of that field towards alternative employment opportunities as indicated by Handshake data which reveals over thirty percent reduction between November 2021 and September 2023, in job applications from technology majors submitted to internet and software companies.
According to Christine Cruzverga, chief education strategy officer at Handshake,”[A]fter monitoring recent industry upheaval” stability remains the prime criterion for new applicants while choosing potential jobs, making them feel uneasy due to tech sector’s mass layoffs. “They are following headlines in mainstream media and noticing all of these dismissals taking place within major Tech players,” she further explained.
As a result of this trend, the glamour surrounding employment opportunities in technology is fading away as workers begin questioning whether positions with such firms still constitute ‘dream jobs’. “My suggestion for individuals aiming to work at tech giants would be not just focusing on one company and feeling like they have to get into that specific organization because it’s the dream,” said Eric Tolotti, a senior partner engineer at Snowflake who was laid off from Microsoft in 2023. “Instead of limiting oneself so strictly or dogmatically – you need options.”
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