Since the pandemic, the tech field has been blowing up. With a mass movement of people online and more companies working remotely than ever before, we were in need of a much larger force of tech workers. What's more, due to the rising stock prices of world-leading tech giants like Apple and Meta, companies were hiring in this field whenever they could.
In the space of a year, from the start of 2021 to the end, this field was almost unrecognizable. But, of course, nothing good lasts forever. In the past year, we've seen this field start to crash and burn. While 2021 saw all-time high stock prices, 2022 saw a tech crash and bull market that drove prices down even further.
For those companies that had just taken on a number of new employees, the sudden change in the market didn't bode well. And not far after the matter, we've seen tech companies around the globe begin to lay off their workforce. Since November 2022, tech companies like Meta, Alphabet, Microsoft, and more have all begun to lay off people on a huge scale. Most recently, Google cut another 12,000 jobs, telling workers that they'd lost their job overnight.
In this article, we'll be diving into the world of tech, tracing the migration of its workers and seeing how they're using these layoffs to spring into new directions.
What Happened to the Tech Field?
Google, Microsoft, Amazon, you name them - it's likely that they've been involved with the historical tech layoffs as of late. But beyond just saving money, why have these layoffs occurred, what's their purpose, and what has changed over the last years to force this industry into this position?
Many believe that the roots of the problem lie in capitalism's need for ever-expanding growth. Venture capital firms have pushed for short-term gains over long-term sustainability. This was especially the case over and post-COVID, where we saw tech stocks boom and more money than ever before flood into this industry.
While the numbers kept going up, tech had the bandwidth to bring on new employees and keep the ball rolling. However, with a number of global circumstances that are beyond control and the impossibility of continual growth, that ball had to stop somewhere.
The recent crashes and bear market have triggered a mass movement of money out of these fields. Without constant growth, investment firms that promise huge returns are suddenly pulling out of the tech in swathes. Without the capital around to then fund their projects, tech is cutting all non-essential workers.
The only projects that remain at many of the largest tech firms are those that have the promise of sustainable growth in the future. All experimental projects that could have been big hitters with VC firms are being reined in. And, with this slashing of projects, comes the loss of 1000s of employees.
Where Are All of the Workers Going?
In 2023 alone, nearly 50,000 workers in tech have been laid-off, with this figure only scratching the surface of what's likely to come. Suddenly, 1000s of people with very similar CVs and job histories are entering the market. Without the ability to reincorporate into the world of tech, where do they go?
Currently, there are two pathways that have become apparent. The first of these is diving into tech-related industries, going to Fintec, Medtec, or blockchain as a way to continue in their field. Alternatively, and seemingly more popularly, tech workers are increasingly going out alone and entering the world of freelance work.
Let's dive into the tech worker migrations.
Pushing into Related-Tech Industries
Tech workers have existed in a thriving space for such a long time that the abrupt end of their careers has shocked many. Instead of seeing this as a time to move into completely new industries, many are looking for jobs within tech-related industries that need skills that are transferable from their tech roles.
A great example of this is the sudden surge of workers that are moving from tech to blockchain. For those not familiar, blockchain is a financial ledger system that is completely public and transparent. This is the tool behind decentralized finance and many leading cryptocurrencies. Beyond just crypto, blockchain is also home to a number of exciting tech-oriented projects that need world-class developers to continue their upward trajectory.
There are a number of cases of developers moving into blockchain, using their tech skills to lend a hand to the projects of tomorrow. For many, this is a wonderful way of continuing the work they move while also experiencing something new. It also represents a natural progression for many, with these tech-related fields being easy to access and in-demand of new talent.
Freelance
Despite having laid off a huge number of employees, large companies are still in need of tech workers to keep their new projects running smoothly. After a series of particularly brutal layoffs, many tech workers are taking their highly sought-after skills and trying their luck as independent workers.
While freelancing was once something that only a few attempted, there is now a whole world out there that's ready to support people. First of all, sites like Upwork and Fiverr allow new workers to find a platform with a number of freelance clients. The aforementioned sites have been a huge part of recent freelance history, with as many as 74 million Americans now working at least one freelance gig a week.
Beyond that, there are now a number of tools that automate or make many of the harder parts of freelancing more accessible for these workers. For example, those looking for a level of professionalism can turn to Wisestamp.com to get an email signature for their new freelance email. Equally, tools like TooglTrack help with time management, while Notion can act as a scheduling tool.
With the availability of online tools and platforms, it's now easier than ever before to work as a freelancer. Recently laid-off tech workers are taking this as an opportunity to start something that they have more control over and offers long-term support.
And, for many, this is only the beginning.
Final Thoughts
As a field, technology is never going to go anywhere. So much of human innovation is tied to this industry that it will never truly disappear. While workers are being laid off in the short term, there is little doubt that this industry will spring back into action over the coming years.
And, as tech recuperates its strengths, there will be another drive for workers. In the meantime, laid-off tech workers are increasingly finding themselves in blockchain, MedTech, fintech, or freelance in order to continue their endeavors in these industries. While this has been a hard year for tech workers, their ingenuity shines as they shift pathways into a related area.
With the ease of remote work, tech workers are able to seamlessly change direction and push onward into a new field.
