Despite the huge profits from giant companies such as the alphabet And Microsoftlayoffs continue to spread across the technology industry.
Layoffs.fyi, a platform that monitors job cuts in the technology sector, recorded more than 263,000 job losses in 2023 alone. As of April, there were more than 75,000 job losses in the industry so far in 2024.
“Instead of rewarding the growth that we've seen (technology companies) seek for years, they're now rewarding profits,” said Jeff Shulman, a professor at the University of Washington's Foster School of Business. “And so the layoffs have continued. People have gotten used to them. And unfortunately and sadly, it looks like layoffs are going to become the new normal.”
Although mass layoffs continue in the tech industry, the job market still looks strong. The US economy added 303,000 jobs in March, well above Dow Jones' estimate of an increase of 200,000, with the unemployment rate falling to 3.8%.
According to Handshake, a popular free job posting site for college students and graduates, layoffs in tech have prompted new workers to look for other opportunities. The share of job applications from technology majors submitted to Internet and software companies fell by more than 30% between November 2021 and September 2023.
“Part of the reason this happens is because stability is a key factor in students’ decisions about the types of jobs they apply for and the types of jobs they accept,” said Christine Cruzverga, chief education strategy officer at Handshake. “They're watching the headlines in the news and paying attention to all the layoffs that are happening at big tech companies, and it makes them feel unsettled.”
Mass layoffs have eroded the luster of the tech industry, which is why workers are wondering whether getting a job in the tech industry should still be considered a “dream job.”
“For people who are chasing…their dream job in tech, I think keep your options open and be realistic,” said Eric Tolotti, a senior partner engineer at Snowflake, who was laid off from Microsoft in 2023. Focus on one company and I feel like you should join that company because it's the dream.”
Watch the video to learn about the sentiments of tech workers, considerations for aspiring tech employees, and more.
