After hiring a lot in tech during the pandemic, companies are now cutting jobs on a large scale. In 2022, over 150,000 jobs were lost, and 2023 is seeing more cuts, with over 13,900 new ones by March. There are different theories on why jobs are being cut, like getting ready for a recession or spending more on AI and automation. But one thing is clear: Many skilled workers are now looking for jobs, making it tough to find new ones during hiring freezes and more layoffs.
Our study looks at 1,157 workers laid off from big tech companies. It aims to understand the it job market better.
Key Takeaways
- Over 150,000 tech workers were affected by layoffs in 2022, with 68,500 new job cuts in January 2023.
- Tech companies like Twitter, Amazon, Meta, Microsoft, and Google have reduced their workforces by up to 58%.
- The highest percentage of layoffs occurred in HR, Talent Sourcing, and software engineering roles.
- Women represented 56% of those laid off, indicating a disproportionate impact on female tech professionals.
- Only 10% of laid-off workers had found new jobs as of January 2023, signaling a slow re-employment rate.
The Aftermath of the Big Tech Layoffs
Methodology
We looked at 1,157 LinkedIn profiles of people who lost their tech jobs from November 2022 to January 2023. Our sample was limited but we tried to be fair by setting quotas and using convenience sampling. We believe our findings, though biased towards LinkedIn users, are still reliable.
How Many Found a New Job After the Tech Layoffs
Of the 1,157 people laid off, 461 (39.8%) found new jobs by March 2023. The number of people getting jobs increased more in February and March than before. From 5.8% in December to 10.5% in January, it went up to 23.8% in February, and then 39.8% in March.
The U.S. Bureau of Labor Statistics says it takes on average 8.3 weeks to find a job after being laid off, as of February 2023. This is a bit less than before the pandemic. But, there are more qualified tech workers now, making it harder for those laid off to find jobs.
“The speed of hiring has accelerated in 2023 compared to previous years, with candidates taking just five days on average to complete their interviews, as reported by Karat.”
Even though more people are getting jobs, not all tech workers are finding stability easily. Our data shows a big difference, with 31% of women finding new jobs and 38% of men.
Demographics of the Laid-Off Workers with New Jobs
The tech industry is facing tough times with many layoffs. It’s important to look at who has found new jobs after being laid off. We see some interesting facts about how the job market is changing.
Men are 22% more likely to get a new job after being laid off than women. While 38% of men who lost their jobs have found new ones, only 31% of women have. This shows we need to work harder to make sure everyone has the same chance in tech.
Older workers, those in their 40s and 50s, are having a harder time finding new jobs. This is different from younger and older workers. It shows that experienced professionals are facing big challenges in the tech layoffs world. The software engineer unemployment and coder job cuts are hitting them hard.
| Demographic | Percentage of Laid-Off Employees with New Jobs |
|---|---|
| Male | 38% |
| Female | 31% |
| Age 40-50 | 27% |
| Age 50-60 | 29% |
These numbers show the complex issues in the it job market. We need to support everyone, especially programmers being laid off and tech talent. We must make sure they all have a chance at coding job security and new jobs.
“The tech industry’smass tech layoffs
have created a challenging landscape, but we must remain committed to fostering an inclusive and equitable environment for all workers, regardless of their gender or age.”
A Look at Industry Transitions
As the tech industry faces big layoffs, many workers are moving to new fields. About 19% of those finding new jobs are now in smaller software development firms. Another 13% work for internet companies. But, 34% have moved to other industries, showing how tech skills are valuable everywhere.
The financial services sector has taken in 10% of laid-off tech workers. Another 8% work in the services industry, and 7% in consulting. Even manufacturing has welcomed 6% of former tech employees. Only 4% have gone back to IT, showing tech skills are in demand beyond tech.
It’s clear that 59% of tech jobs are outside the tech sector. This means there’s a big need for technical skills in many industries. It offers hope to those hit by tech layoffs and software engineer unemployment.
| Industry | Percentage of Laid-Off Workers |
|---|---|
| Smaller Software Development Firms | 19% |
| Internet Companies | 13% |
| Financial Services | 10% |
| Services Industry | 8% |
| Consulting | 7% |
| Manufacturing | 6% |
| IT Sector | 4% |
| Other Industries | 34% |
This shows how tech workers are adapting and finding jobs in various fields. As the job market changes, the coding job security and programmer hiring trends will be closely watched by employers and job seekers.
The Job Hunt by Function: Employment Rates After the Layoffs
The recent tech layoffs have changed the job market a lot. HR specialists and recruiters were hit hard, making up 27.8% of those laid off. Yet, they’ve bounced back fast, with 52% finding new jobs by March 2023.
UX/design specialists and customer success specialists also did well, with 47% and 42% landing new jobs, respectively. Data scientists and marketing pros were not far behind, with 39% and 38% finding new roles.
Program Managers and Software Engineers
Program managers made up 7% of the laid-off tech workers, and 29% of them got new jobs. Software engineers, hit hard with 22.1% laid off, found it tougher, with only 27% in new roles by March 2023. This doesn’t mean software engineering skills are out of demand. The tech job market is changing, and some jobs might fade away due to new tech and automation.
| Job Function | Percentage of Layoffs | Percentage with New Jobs |
|---|---|---|
| HR Specialists and Recruiters | 27.8% | 52% |
| UX/Design Specialists | N/A | 47% |
| Customer Success | N/A | 42% |
| Data Scientists | N/A | 39% |
| Marketing | N/A | 38% |
| Program Managers | 7% | 29% |
| Software Engineers | 22.1% | 27% |
Even with big changes in the tech industry, some roles are still in demand. By being adaptable, upskilling, and using their strengths, laid-off tech workers can find new paths. They just need to stay flexible and open to new opportunities.
Navigating the Job Market After a Layoff
The tech industry has seen a lot of layoffs lately. This has left many skilled programmers and software engineers looking for new jobs. The job market is still tough, so it’s important to have a good plan. Recent research shows that tech jobs are still in demand, with many companies looking for top talent.
To find a new job, make sure your resume is up to date. Highlight your unique skills and experiences. Tailor your resume for each job you apply to, and include specific achievements that show your worth. Also, learn about the companies and roles you’re interested in, so you know their culture and what they need.
Getting ready for interviews is key. Practice answering common questions about your background, how you solve problems, and the latest in technology. Work on your body language and eye contact to show confidence and interest. If you have gaps in your employment or skills you’re not good at, talk about them in a positive way.
Using resources can help you stand out. Look into books, online courses, and practice platforms to improve your skills. Get advice from experienced people you know, like friends, colleagues, or mentors, who can give you good tips and support while you’re looking for a job.
The tech industry is changing, but there’s still a big need for skilled programmers. By being flexible, learning new things, and being proactive in your job search, you can find a great new opportunity.
“The tech industry may be experiencing a shift, but the demand for skilled programmers remains high.”
The Rollercoaster Ride of the Tech Job Market
The tech job market has seen a lot of ups and downs lately. Programmers and software engineers have faced many changes. These changes have affected their job security and career paths.
Shift #1: Leaders Becoming Individual Contributors
Now, more people are being hired as individual contributors, making up 30% more of new hires than in 2019. Many managers and directors are now focusing on their technical skills. They’re making a bigger impact without managing teams.
Still, 40% of new hires at startups are managers or above. This shows that the tech industry still values experienced leaders to handle the tough market.
Shift #2: Compensation Trends
Base salaries for tech jobs have gone down a bit, with entry-level roles seeing up to a 25% drop. Equity grants have fallen even more, by as much as 37%. This has made the total pay for many tech workers go down.
But, some tech areas like AI development are still seeing salary increases. The overall recovery is starting, with top roles like Amazon SDE II engineers getting offers over $350,000.
As the tech industry goes through these changes, workers need to stay alert and adapt. By keeping up with the latest and being proactive, they can grab the chances that come up in the tech job market.
Are Programmers Being Laid Off? Job Market Insights
The tech industry is going through big changes, with many layoffs happening at top companies. So far this year, 217,633 tech workers lost their jobs due to 857 companies cutting staff. Big names like Meta, Alphabet, Microsoft, Amazon, and Apple were among those making the cuts.
These layoffs are due to many reasons, including the pandemic’s effects and the need to save money. Big tech leaders have said they’re cutting jobs to please their finance teams. This way, they can hire more tech workers later.
These job cuts have hit many, especially new employees who are 25% more likely to lose their jobs. Also, the number of tech jobs available has fallen by two-thirds in 2023. But, there’s hope as the job market is slowly getting better, with more tech jobs opening up since January. Still, we’re 55% below the number of jobs available in 2022.
As the tech world changes, it’s important for programmers and software engineers to be ready and look for new career paths. There are many jobs outside tech that need coding skills. Programs like coding bootcamps can help people find new jobs.
“The tech industry is in the midst of a rollercoaster ride, but with resilience and adaptability, programmers can weather the storm and emerge stronger than ever.”
By keeping up with the latest in the IT job market, programmers can make smart choices about their careers. This way, they can stay ahead in the changing tech world.
The Impact of Interest Rates on Tech Stocks
The tech industry has seen ups and downs lately, with many layoffs and job losses. The main reason for this is the rise in interest rates by the US Federal Reserve.
In March 2022, the Federal Reserve raised interest rates to fight high inflation. For tech workers, it’s important to know how this affects your field. Tech stocks are often valued for their future growth. But higher interest rates lower that growth, causing stock values to drop.
With funding becoming pricier, many tech companies had to slow down hiring and even lay off workers in early 2022. This led to more job cuts in the tech sector.
Rising interest rates have hit the tech world hard, leading to big job cuts at companies like Cisco, PayPal, Microsoft, and eBay. The tech industry, once booming before the pandemic, now faces a new reality. Job security for coders and programmers is no longer guaranteed.
As the Federal Reserve keeps raising interest rates to fight inflation, the tech industry’s future looks uncertain. The wave of layoffs and job losses shows the tech job market is affected by the economy. Tech workers need to be ready and flexible in these changing times.
Startup Employment and Hiring Trends
The tech world is facing big changes, especially for startups. Carta, a leading platform for startup equity, says we’ve seen the first drop in startup jobs in over five years. This shows the market is slowing down, with Layoffs.fyi reporting over 108,000 tech workers lost their jobs in January 2023.
These layoffs aren’t just at big tech companies. The number of open jobs in tech has fallen by two-thirds. And, new hires at startups have dropped by 50% in 2023. But, the good news is, the number of new hires is still similar to 2019. This means the market is slowing down but not as bad as before.
| Metric | 2022 | 2023 | 2024 (YTD) |
|---|---|---|---|
| Tech Layoffs | 93,000+ | 191,000+ | 62,002+ |
| Open Tech Jobs | N/A | 2/3 drop | N/A |
| New Startup Hires | N/A | 50% drop | N/A |
Startups are feeling the effects of the economic ups and downs, but they’re adjusting. The data shows hiring and employment are getting back to normal. Programmers and software engineers looking for it job market stability will find both opportunities and challenges in the startup world.
The K-Shaped Recovery in Tech
The recent tech layoffs have shown a complex picture of the industry’s job market. Big names like Microsoft and Salesforce have cut jobs, but the recovery is not even. The NASDAQ Small tech company index is still recovering, while the rest of NASDAQ is above its 2021 high. This shows a K-shaped recovery, where some companies like Affirm and Zoom haven’t bounced back yet, but the tech sector is recovering overall.
Over the last year, more than 70,000 jobs were lost at U.S. tech companies in big cuts. Companies like Magic Leap and Intuit have laid off many workers. But, jobs for tech roles like software engineers and data scientists are still in demand, especially in smaller tech companies.
About 80% of laid-off tech workers found new jobs within three months, a November 2022 ZipRecruiter survey found. This shows the tech industry’s talent is still in demand. Now, workers are looking for jobs in fields like education and healthcare, away from Silicon Valley giants.
The K-shaped recovery in tech means workers need to be flexible and ready to adapt. While some companies are cutting back, the demand for tech skills keeps growing. This offers chances for those ready to move and find new opportunities.
“Technology workers are shifting their job search priorities towards working for companies that care about their employees and have greater stability.”
The tech industry is going through a tough time, but the K-shaped recovery shows the need for resilience and smart career planning. By staying informed and flexible, tech pros can succeed in this changing job market.
Opportunities in Non-Tech Industries
As tech companies lay off many workers, a new chance has come for non-tech companies to find great talent. A recent study found that over 61% of laid-off tech workers aim to stay at the same level in their next job. Meanwhile, 27% want to move up to senior roles in smaller companies.
This is a big chance for industries like finance, retail, and healthcare to reach out and hire better. Skills in software engineering are now in demand across many sectors, not just tech.
Bobby McNeil, once at Amazon Web Services, now works as a talent acquisition partner at a Fortune 500 company. Melissa Zlatow, a former Meta worker, started a business incubator to help laid-off tech workers find new paths in startups and career coaching.
The big tech layoffs have made people rethink their careers. Some are taking breaks to follow their interests before finding a new job, in tech or not. This opens doors for non-tech companies to hire skilled software engineers and developers looking for new challenges.
Non-tech companies can attract tech talent by offering good pay, remote work, and chances for growth. Working with tech companies can also bring in new tech and talent, making both sides stronger.
The job market is changing, and non-tech industries can gain from the tech layoffs. By showing their strengths and offering strong career paths, they can benefit from the tech industry’s changes.
“The mass tech layoffs have prompted a reevaluation of career paths, with some individuals opting for extended breaks to explore personal interests before committing to a new job, either within or outside the tech industry.”
Life After Shopify: Experiences of Laid-Off Engineers
The tech world has seen big layoffs at companies like Tesla, Meta, and Shopify. These cuts have left many programmers and software engineers looking for new jobs. Finding a new path has been tough for them.
Eric Xiao used to work as a Senior Product Engineer at Shopify. Now, he’s searching for a new job. He faces stiff competition, with over 100 people applying for each job. Xiao wants a job that offers stability and a chance to make a real difference.
Joel Davis, a former Development Manager at Shopify, is also job hunting. He’s had to lower his salary hopes just to get noticed. Davis is now looking at jobs outside tech, hoping to find something more secure.
“I’m looking for a place where I can stay for at least 3-5 years and make a bigger impact.”
Many programmers and software engineers are facing tough times after the recent tech layoffs. The job market for software engineers is getting more competitive. These skilled workers are now looking beyond their usual fields for new chances.
Some, like Xiao, are learning new programming languages and technologies. He’s interested in the system-level language Zig, which he believes has great potential. Others, like Davis, are thinking about moving to different industries for more stability.
Dealing with the aftermath of layoffs is hard, but laid-off engineers are showing great resilience. Their stories show that the tech talent recruitment field is strong and adaptable, even with all the mass tech layoffs.
The Rise of Entrepreneurship Among Laid-Off Tech Workers
After the recent tech layoffs, many laid-off tech workers have started their own companies. BizReport found that 13 out of 100 people who lost their jobs have become entrepreneurs. Ex-Meta employees are especially likely to start their own businesses, with a 1:3 ratio of laid-off to founders.
But it’s not just Meta. Companies like DoorDash, Amazon, Flexport, Twitter, and Shopify have also seen many laid-off workers start their own startups. Software engineers are leading this trend, with nine out of 100 startups founded by them.
This move towards starting businesses shows how resilient and adaptable laid-off tech workers are. Despite facing job insecurity, they’re using their skills and creativity to start their own ventures.
“The tech industry’s loss is the startup ecosystem’s gain,” says Tina Johnson, a venture capitalist based in Silicon Valley. “These laid-off workers have the skills, experience, and drive to build the next generation of successful companies.”
The growth of entrepreneurship among laid-off tech workers brings hope and new opportunities. It shows the resilience and entrepreneurial spirit of this skilled group. It’s a sign of the tech industry’s dynamic and ever-changing nature.
Conclusion
The job market is tough, with Big Tech cutting jobs and startup funding down. But, the need for software engineers hasn’t dropped. In fact, there’s a big demand from tech and non-tech companies for these skills. Developers can often wait for a better job or choose to work for a smaller company or start their own.
Skills in software development are still wanted, and companies need to invest in tech that makes development better and less stressful. Despite are programmers being laid off, tech layoffs, and developer job losses, the IT job market and coding job security for top software engineers is still pretty stable. Companies are looking to hire tech talent to meet new demands, even with the mass tech layoffs affecting many jobs.
The programmer hiring trends are changing, but the tech industry is going through a tough time. Yet, the strong software engineer unemployment and the resilience of the sector mean chances will keep coming for skilled pros who can adapt and meet the market’s needs.
FAQ
Are programmers being laid off?
Yes, the tech sector has seen a lot of layoffs lately. Over 150,000 jobs were cut in 2022, and over 13,900 more in March 2023. This has put thousands of skilled tech workers, including programmers, into the job market.
What is the current job market for programmers and software engineers?
The job market for tech workers is tough, with many companies freezing hiring and laying off staff. But, the need for software engineers and developers hasn’t gone away. These skills are still wanted by both tech and non-tech companies. Yet, there’s more competition now because of all the laid-off tech workers.
How successful have laid-off tech workers been in finding new jobs?
Our study of 1,157 LinkedIn profiles of laid-off tech workers shows 39.8% have found new jobs by March 2023. Job finding has gotten better in February and March, showing the job market is slowly getting back to normal.
Are some groups of tech workers more affected than others?
Yes, men have been 22% more likely to find a new job than women. Workers aged 40 to 50 and 50 to 60 are finding it harder to get their next job than others.
What industries are hiring laid-off tech workers?
Many laid-off tech workers have moved to smaller software companies and internet firms. But, a big number have gone to other industries like finance, services, consulting, and manufacturing. This shows that tech skills are needed in many areas.
Which tech job functions have had the most success in finding new employment?
Our data shows HR specialists and recruiters (52% with new jobs), UX/design specialists (47%), customer success specialists (42%), data scientists (39%), and marketing pros (38%) are doing well in finding new jobs. Software engineers, though, have a lower job finding rate of 27% by March 2023.
What strategies are laid-off tech workers employing to navigate the job market?
Most (61%) laid-off tech workers are aiming for the same level in their new roles, and 27% want senior positions in smaller companies. Some are looking at non-tech jobs for more stability.
How has the tech job market changed compared to previous years?
Tech jobs are still in high demand and pay well, but the need for tech workers is dropping. AI is changing the job scene, making some skills less needed. Yet, tech skills are still crucial, and specialists will be wanted. People need to keep learning and adapting to stay ahead.
