Following a decade of explosive growth, the tech industry faces one of its biggest challenges with a tidal wave of layoffs. As redundancies loom, we’re witnessing a shift away from the previously established candidate-driven market, allowing innovative organisations to benefit from the larger talent pool.
Current economic uncertainty has forced cost-cutting measures worldwide, inducing layoffs by the thousand across some of the most dominant companies in the tech industry. As specialist candidates search for stability, employers have a new opportunity to attract top talent.
Companies Making Cuts
In the first weeks of 2023, Amazon announced the biggest cutbacks in its history, losing up to 6% of its workforce and enacting the most extensive layoff the tech industry has ever seen. They’re closely followed by Microsoft, Google and IBM as mass redundancies impact the entire sector.
The news of imminent eliminations is hugely unsettling for IT professionals, especially those working full-time in big tech companies. However, the reality is that these tech giant redundancies are not a fair indicator of the entire tech industry in the UK.
Employee Uncertainty
The tech space ballooned during the pandemic, with more consumers at home and online during considerable portions of the day. At that time, big tech companies such as Zoom, Apple and Meta significantly increased their numbers, offering enormous salaries to boost their offering.
With the depletion of demand and growth due to the current financial crisis, these companies have no choice but to make critical cuts to their workforce, generating employee uncertainty globally.
With 53% of employees in the tech sector actively seeking new employment due to redundancy fears, job security is crucial in attracting and retaining top talent. It’s time for tech employers and company leaders to nurture their employees, ensuring they feel secure and valued in their respective roles.
An Employer-Driven Market
With more competition for one role, tech candidates must now navigate an employer-driven market as salaries decline and the number of applicants surge.
But with so many roles within small businesses remaining unfulfilled and a vast number of job opportunities at mid-level, the chance to make a sizable impact in the industry remains as strong as ever in the UK.
Tech redundancies will allow fresh, creative ideas to thrive beyond giant tech organisations as companies with hiring budgets will secure expert ex-employees for the long term. Also, as more IT professionals seek new roles, businesses will benefit from the numerous great options available for employment.
Navigating the Tech Market
Here at Morris Sinclair, we help our clients and candidates to gain a clear and concise picture of the current market and what to expect moving forward. With the continuous impact of the cost of living crisis, recruiters must consider what’s transpiring in the industry and recognise how the hiring process has evolved.
With 40 years of combined experience as IT professionals, we are experts in navigating the fluctuating tech landscape, guiding our clients and candidates through the toughest circumstances.
Whether you are a tech professional searching for stability or an organisation seeking new talent, our honest and transparent team would be delighted to discuss your requirements. Contact us today!
