Despite blockbuster revenues from giants such as Alphabet And MicrosoftLayoffs continue to ripple through the tech industry.
Fired.fyi, a platform that monitors job losses in the technology sector, recorded more than 263,000 job losses in 2023 alone. As of April, more than 75,000 jobs have been lost in the sector so far in 2024.
“So instead of rewarding the growth that we saw [tech companies] They pursued it all years ago, but now they're rewarding profits,” said Jeff Shulman, a professor at the University of Washington's Foster School of Business. 'And so the layoffs continue. People have gotten used to it. Sadly and sadly, it looks like layoffs are going to be the new normal.”
Although massive layoffs in the technology sector continue, the job market still appears strong. The US economy added 303,000 jobs in March, well above the Dow Jones estimate of a 200,000 increase, with the unemployment rate falling to 3.8%.
According to Handshake, a popular free job site for students and graduates, layoffs in the tech sector have driven new workers to seek other opportunities. The share of engineering student applications submitted to internet and software companies fell by more than 30% between November 2021 and September 2023.
“Part of the reason this is happening is because stability is such an important factor in students' decisions about the types of jobs they apply for and what types of jobs they accept,” said Christine Cruzverga, head of education strategy at Handshake. “They're looking at the headlines and paying attention to all the layoffs happening at Big Tech, and that makes them feel unstable.”
Massive layoffs have eroded the shine of the tech industry. That's why workers are wondering if getting a job in the tech industry should still be considered a “dream job.”
“For those of you looking for a dream job in the technology industry, I think you have to keep your options open and be realistic,” said Eric Tolotti, senior partner engineer at Snowflake, who was laid off from Microsoft in 2023. focus on one company and feel like you have to get into that one company because it's the dream.”
Watch the video to learn about the feelings of tech workers, considerations for aspiring Big Tech employees, and more.
