10/24/22
Layoffs and hiring freezes in the tech industry have been making headlines throughout 2022. Microsoft laid off as many as 1000 employees last week, and Meta recently announced it would be implementing a hiring freeze. Other major companies such as Netflix, Tesla, and Snapchat have also reported layoffs this year, with Snapchat cutting a staggering 20 percent of its workforce. These occurrences are leaving tech employees feeling less confident in their job security. A June survey found that only 9 percent out of the 7,000 surveyed stated that they feel that their job is safe.
Do these layoffs point to a bleak future for the tech industry? While there are a lot of variables to consider, it does appear that some companies are simply being hit harder than others. As several tech businesses are slashing jobs, others are exceeding expectations. Some companies, like Netflix, fall into both categories. Netflix, the same company that laid off 480 employees just this year, is also reporting 2.4 million new subscribers in its third quarter – nearly doubling expectations. Amazon also shared a positive forecast for quarter three, anticipating growth of 13 to 17 percent. So, spurts of tech layoffs may not mean that all tech employees should be bracing for separation. In fact, many jobs in tech are expected to grow significantly through 2030, including software developers and testers, information security analysts, and web developers. Perhaps employees in the tech industry have several reasons to keep their resumes up to date.
Despite a decrease in employees’ senses of job security, a seemingly paradoxical trend is still underway: many employees are freely quitting their jobs. Quits across all industries averaged 2.7 percent in August, indicating that employers may have more cause for concern than employees. The pandemic sparked a wave of employees quitting their jobs due to unsafe or volatile conditions, and the trend appears to have evolved into a cultural norm. Today, people are much less willing to tolerate negative working environments and are prioritizing other aspects of their lives outside of work.
Conversations on how to merge employee satisfaction and productivity are on the rise, and experts and tech CEOs alike are encouraging the technology industry to prioritize company culture. They detail ideas such as expanding diversity, equity, and inclusion efforts, establishing attainable work-life balance, and promoting a growth mindset. Not only would focusing on these details increase employee satisfaction, but satisfied employees would also provide companies with a positive return on investment. As of today, the future of the economy is uncertain, and layoffs across technology companies may still be on the horizon. Regardless of what comes next, one thing appears to hold steady: workers are more focused on job satisfaction than job security.