The TRAGIC Truth Behind Tech Layoffs (2024)
Summary
TLDRThe tech industry is experiencing significant layoffs, with major companies like Google, Amazon, and Snap cutting their workforce. Despite the anxiety among workers, the LinkedIn Workforce Confidence Index suggests job security is not the primary concern. While layoffs are trending up, the tech job market remains active with 400,000 new job postings monthly. The focus should be on the job forecast and available opportunities rather than the doom and gloom. The tech sector continues to grow rapidly, with information security jobs projected to expand by 32% by 2032. Embracing AI and upskilling is crucial as cyber attacks become more sophisticated.
Takeaways
- π The tech industry is experiencing significant layoffs, with major companies like Google, Amazon, and Snap cutting jobs, indicating a challenging job market.
- π» Despite the layoffs, there is still hope for engineers and tech professionals, as the demand for technical roles, especially in cybersecurity, continues to grow.
- π₯ The LinkedIn Workforce Confidence Index suggests that job security is a growing concern among workers, reflecting the anxiety caused by the widespread layoffs.
- π¨βπ» Non-engineering roles are being hit the hardest by layoffs, particularly at Meta (formerly Facebook), though tech roles are not entirely safe either.
- π The layoffs could be attributed to various factors, including overhiring during the pandemic and companies striving to increase their stock value artificially.
- π Despite a decrease in tech job postings, there are still approximately 400,000 active and new tech job listings, suggesting opportunities remain in the industry.
- π The tech workforce is expected to grow, with a particular increase in cybersecurity roles, indicating a continuous need for tech professionals.
- π§βπ» AI and automation are identified as key areas of growth and complexity in tech, demanding more sophisticated skills from professionals.
- π© The reality of tech layoffs and job availability varies; while there are concerns, data suggests there are more tech job openings than applicants, offering a positive outlook for job seekers.
- π Personal strategies for dealing with the uncertain job market include diversifying income sources and always being open to new opportunities.
Q & A
How many tech employees have been laid off according to the transcript?
-The transcript mentions several tech companies laying off employees, with numbers ranging from 8% of Microsoft's gaming division, 35% of Twitch's workforce, 12,000 employees from Google's parent company Alphabet, and 10% of Snap's workforce. Specific numbers like 400 employees laid off from companies like OCTA and DocuSign, and over 400,000 people laid off in 2023 are also mentioned.
What are some reasons speculated for the layoffs in the tech industry?
-The transcript speculates several reasons for the layoffs, including over-hiring during the pandemic, companies hiring to increase stockholder perception and artificially inflate company value, and operational efficiency through reduced headcount.
What is the current trend in tech industry job postings?
-Despite the layoffs, the transcript indicates that tech industry job postings are not at zero. There are still around 400,000 active and new job listings on a month-to-month basis, suggesting an upward trend in tech employment.
How does the transcript address the concern of job availability in the tech industry?
-The transcript addresses this concern by referring to CompTIA's tech jobs report, which shows an uptrend in tech industry employment and a drop in unemployment rates. It also mentions that there are more job listings than unemployed people, with three IT job listings for every one person looking for a tech job.
What is the projected growth for information security jobs by 2032?
-The transcript mentions that information security jobs are projected to grow by 32% by 2032, indicating a significant increase in demand for cybersecurity professionals.
How does the transcript suggest AI is affecting the tech industry and job market?
-The transcript suggests that AI is making the tech industry more complex and is creating a demand for AI specialists. It also discusses the fear that AI might make certain jobs obsolete, but counters this by pointing out the challenges in implementing AI, especially at an enterprise level.
What advice does the speaker give to those concerned about job security in the tech industry?
-The speaker advises not to put all eggs in one basket and to pursue side projects or hustles. They also emphasize the importance of being open to new opportunities and not being too comfortable with any given employer due to the nature of big businesses prioritizing profit maximization.
How does the transcript describe the impact of layoffs on different types of employees?
-The transcript acknowledges that layoffs are a mix of hard workers, less hard workers, and those who may not contribute significantly to their roles. It highlights the unfortunate reality that layoffs can affect anyone, regardless of job performance.
What is the speaker's personal perspective on the layoffs?
-The speaker views the layoffs as an unfortunate but unsurprising result of financial uncertainty in businesses, leading to over-hiring and now, the need to downsize. They believe that companies should focus on hiring for actual needs and improving products or services.
What does the transcript imply about the future of jobs in the tech industry?
-The transcript implies that despite the layoffs, the tech industry is still growing at a fast pace, with specific sectors like cybersecurity experiencing significant growth. It suggests that tech jobs, especially in cybersecurity and AI, will continue to be in demand.
How does the transcript address the issue of automation and its potential impact on jobs?
-The transcript discusses the concern that automation, including AI, might lead to job loss. However, it points out the complexity of implementing automation and the potential for it to inadvertently cause undesired outcomes, suggesting that human oversight and intervention will still be necessary.
Outlines
π Tech Layoffs and Job Market Analysis
This paragraph discusses the impact of widespread layoffs in the tech industry, including major companies like Google, Amazon, and Snap. It raises the question of whether these layoffs indicate a stagnant job market or something more sinister. The speaker intends to analyze the actual situation, including the number of layoffs and their implications for the US tech workforce. The paragraph also touches on the potential causes of layoffs, such as overhiring during the pandemic and the pursuit of inflated company values by stockholders. It concludes with a look at the current state of tech layoffs, which is trending upwards, suggesting a critical situation for workers.
πΌ Tech Job Availability and Forecast
The second paragraph delves into the availability of tech jobs despite the layoffs, using data from CompTIA's tech jobs report and other sources. It highlights that while there is an increase in tech job seekers, including newly turned 18 individuals and those laid off, there are still more job listings than unemployed persons overall. The paragraph emphasizes the better odds in tech compared to the national average and points out the growing demand for information security and AI specialists. The speaker shares their perspective on the layoffs as a result of financial uncertainty and poor hiring practices, advocating for a more strategic approach to hiring and resource allocation in tech companies.
π Navigating the Tech Industry Amidst Layoffs
In the final paragraph, the speaker reflects on personal strategies for navigating the tech industry during times of layoffs. They acknowledge the unfortunate reality of layoffs and suggest that businesses often prioritize profit over employee well-being. The speaker shares their approach to self-protection, which includes diversifying income streams through side projects and constantly seeking new opportunities. The paragraph ends with a call to embrace AI and other technological advancements to improve work efficiency, while also addressing the fear of job obsolescence due to automation and the complexity of cyber attacks.
Mindmap
Keywords
π‘layoffs
π‘tech industry
π‘job market
π‘
π‘cybersecurity
π‘AI specialists
π‘workforce
π‘job postings
π‘economic trends
π‘side hustles
Highlights
Tech industry layoffs are on the rise, with major companies like Google, Amazon, and Snap implementing job cuts.
Non-engineering roles at Meta (Facebook) are being hit the hardest by layoffs.
Microsoft's gaming division, following the Activision Blizzard acquisition, is laying off 8% of its workforce.
Twitch laid off 35% of its workforce, which equates to 500 employees.
Alphabet, Google's parent company, has laid off 12,000 employees.
Despite layoffs, the total number of tech layoffs is trending up, approaching a critical mass.
The reasons for layoffs could include overhiring during the pandemic, inflation, and the need for companies to operate more efficiently.
The LinkedIn Workforce Confidence Index measures anxiety levels among workers, with job security being a significant concern.
There are still 400,000 active and new job listings in the tech industry monthly, indicating opportunities for job seekers.
The tech industry unemployment rate has dropped from 14% to 4% nationally and 4% to 2% in tech.
Approximately 300,000 people turning 18 in 2024 could potentially enter the tech industry workforce.
There are about 1 million people applying for tech jobs, including fresh graduates and those laid off or seeking new jobs.
There are three IT job listings for every one person looking for a tech job, better odds than the national average.
The tech industry is consistently growing, with information security jobs projected to grow by 32% by 2032.
Cybersecurity job listings are estimated to be close to 500,000, ranging from entry-level to senior positions.
AI is making tech jobs more complex, leading to a demand for AI specialists and the need for continuous learning.
Layoffs may be a result of financial uncertainty and overhiring, with companies potentially fixing their hiring processes.
The fear of AI taking over jobs is contrasted with the complexity of implementing AI in large environments.
Individuals should not rely solely on one job or employer, embracing side projects and continuous opportunities.
Businesses aim to maximize profits, sometimes at the expense of employee job security.
The reality of tech industry layoffs is a mix of hard workers and those who may not contribute as much to the company.
Transcripts
as many as half of its employees were
laid off there are laws that protect
workers another round of job Cuts Google
Amazon and snap enough is enough and
snap says it's laying off 10% of its
Workforce while companies like OCTA and
DocuSign are each laying off around 400
employees behold the tech layoff tracker
of Despair no death no no no too too
dark getting fired sucks and so does
this chart question everybody wants to
know these days is how hard is it to
actually get a job in Tech given the
tragic amount of layoffs that we are
seeing are these layoffs a sign of
something more Sinister or are they just
signs of a stagnant job market that is
making it difficult to land a job these
days and probably for most of you
watching are concerned Landing a job in
cyber security if we refer to the
LinkedIn Workforce confidence index a
measurement of the anxiety levels among
workers we can see that while it is not
the biggest concern it's up there let's
talk about it first we have to figure
out what the actual [Β __Β ] is going on and
how many layoffs are we actually seeing
then I'll go over what this actually
means for US tech people and and my
advice moving forward so looking at a
few of the big Tech layoffs we can find
a mixture of entirely different
positions No One Is Safe what's
interesting to note in Facebook's case I
mean meta's case is that non-engineering
roles are being hit the most so there's
hope for us Engineers right oh no we've
got 8% of Microsoft's gaming division
being laid off which after their 68.7
billion dollar Yes you heard that right
billion doll acquisition of Activision
Blizzard that's kind of a shock to see
that kind of layoff twitch laid off 35%
of their Workforce which sounds dramatic
but that's only 500 compared to the
thousands we're seeing in other
companies by sheer numbers alone Google
or rather its parrot company alphabet
has laid off 12,000 employees looking at
this chart the number of tech employees
let go one might think the worst is
behind us right no actually the total
number of tech layoffs is trending up
we're approaching critical mass everyone
doing for themselves scatter we need
side hustles now second job breathe
breathe okay one can specul all they
want about what's causing the layoffs it
could be due to the over hiring that was
done during the pandemic where employees
were forced to work remote it could be
companies hiring to Simply increase the
perception that stockholders have of the
company as a way of artificially
increasing the value of the company if
more people are buying a company stock
that means the company's doing good
right you sure about that inflation
rates are actually trending down after
peing at a 40-year high of 99.1% in 2022
now it is trending down but I'm not
going to go into politics because that
is an endless Rabbit Hole of a
discussion or maybe it's just like
companies are saying to reduce headcount
and to operate more efficiently we all
know someone who's got a job where they
do pretty much nothing all day way too
much downtime not me though I work a
full eight hour shift and I do a lot I'm
so busy mhm mhm it's very hard now this
might sound controversial but I
personally think that there's a lot of
jobs that are you're so hyperfocused on
one particular thing that you could
probably combine that workload and
offload that to somebody else to a
different position if you can fire half
the workforce at Twitter and still have
a functioning website that's still
running okay as far as I can tell I'm
pretty sure some of those jobs were in
fact unneeded but regardless of the
reason of the layoffs that should not be
the primary focus in all of the news
outlets and media right now what we
actually need to focus on more so than
the Doom and Gloom that sells papers and
gets those clicks on those articles is
the job forecast and actual jobs
available yes these layoffs are scary
and yes Twitter Cuts 50% of its staff
sounds like it's going to be impossible
to find a job but is that actually the
case well let's take a look at com Tia's
tech jobs report this provides a monthly
snapshot of it employment in terms of
tech industry employment as of January
of this year we see an uptrend we also
see a drop in unemployment from 14% to
4% nationally and 4% to 2% in Tech if we
take a look at at job postings yes the
active and new job postings are going
down significantly but they're not at
zero we're still seeing 400,000 active
and new job listings on a month-to-month
basis and for the sake of Simplicity
let's do some math to see how many
people might be joining the tech
industry Workforce in 2024 how many
people turned 18 in 2024 well 2024 minus
18 is 2006 how many people were born in
2006 4.3 million what percentage of the
population Works in Tech about 7.9% so
we're looking at just over 300,000
people that could be potentially
entering the tech industry Workforce in
2024 but Mad Hat you idiot that doesn't
account for the older people or just
people looking for a new tech job or the
people that got laid off well you're
right well apparently in 2023 there are
about 12.4 million people looking for
jobs in any given month if we take out
the same 7.9% that work in Tech from
that amount we get about 1 million
people applying for tech jobs presumably
300,000 of which are fresh 18-year-olds
yoloing their way into the tech space
this leaves about 700,000 older people
that are either unemployed or employed
looking for new tech jobs and given this
also doesn't take into consideration all
of the massive layoffs that we were
seeing this past year with over 400,000
people laid off in 2023 alone we can
assume that there's a fair bit amount
more than 1 million applying to jobs as
of 2024 now obviously everybody laid off
isn't working in a technical position
some could be marketing or project
manager but still there's a good portion
of the layoffs that are adding to the
tech competition and with surveys like
this one indicating that there's a
disproportionately high percentage 55%
saying that they're likely to apply for
a new job in 2024 it's probably even
higher than that so this begs the
question are there more applicants than
jobs well broadly speaking no pretty
much anybody can get a job at McDonald's
these days the number of unemployed
persons per job listing is less than one
meaning that there's more jobs than
unemployed people but that's just true
of all Industries as a whole we're in
Tech checking the numbers from earlier
we're seeing anywhere from 1 million to
1.2 million that is accounting for
layoffs of people applying for Tech
positions in 2023 alone us employers
advertised 3.13 million it job postings
so what does that mean for you a person
looking for a new tech job that means
there's currently three it job listings
for every one person that is looking for
a tech job these are even better odds
than the national average of two jobs
per every one person and even with job
openings in Tech down from a high of
8.3% in April of 2022 to 4% as of
December there Still Remains an upward
Trend overall Tech is still consistently
growing and growing at a fast pace
information security Allens for example
is growing at an even crazier amount
projected to grow by 32% by 2032
supposedly but it does make sense given
that I currently am a security analyst
why there would be an increase in needs
so is the reality of the tech industry
jobs also the reality of of the cyber
security jobs this map available on
Cyber seek indicates that there are 500
quote unquote open job positions that
were available between September of 2022
and August of 2023 obviously we're in
2024 now so that number is probably a
bit different as we can tell from comp
Tia's data set but I imagine it's pretty
close to that number still we're
probably still close to the 500,000
cyber security job listings currently
and these are of course positions that
are ranging from entry level quote
unquote toor level positions so all you
newbies don't get too excited and even
with the reduction in job postings the
growth in Tech and cyber security is
never going to go down in fact as you've
seen everything is trending upwards Tech
is getting more complicated AI is making
it even more complicated so we're going
to need to start learning some more
advanced [Β __Β ] to keep up with the times
anyone in the cyber security industry
can attest to how the cyber attacks are
growing more and more sophisticated and
AI is just throwing a wrench into things
and making them even more more
complicated and with the rise of AI
we're of course seeing a natural influx
of demand for AI Specialists so we're
going to have to embrace Ai and all of
our Tech to improve and streamline our
work now I've said this before and I'll
say it again there's a growing fear that
AI is going to take over multiple jobs
multiple positions and make us obsolete
anything from coding to analyst to
engineering even is going to get taken
over by AI soon so why bother but
anybody who's worked with AI tools a day
in their life can attest to the fact
that it's incredibly compc at to
implement AI in a small to Enterprise
level environment and the bigger the
environment the more complicated it gets
exponentially because the problem with
automation is that you don't want things
happening automatically that you didn't
want to happen so what do I think of the
layoffs and what am I doing to protect
myself well the layoffs are an
unfortunate and almost unsurprising
result in my dumb opinion a combination
of all the problems that we've discussed
in that businesses face Financial
uncertainty in companies creates a
perfect storm of over hiring and now
instead of attempting ing to repurpose
The Hires that you hired which is
presumably more expensive to do they are
outright laying off the entire
department and are hopefully in the
process of fixing their hiring process
like I said before if Twitter can fire
50% of their company and still function
then most likely all the other big Tech
Giants can probably do the same
hopefully they can get to a point when
they hire somebody they actually need to
solve a purpose in the company and
improve a product or a service instead
of hiring to make stockholders think
that the value of your company should be
more more than it is and that the
company is growing like crazy or hiring
for a future potential need that never
comes to fruition as for what I'm doing
to protect myself as the saying goes I'm
not keeping all my eggs in one basket
I've got side projects side hustles this
YouTube channel for example is a side
project that I love doing more than my
current job and I'm always on the
lookout for New Opportunities you can
never be too comfortable at any given
employer cuz you never know if you're
going to be one of the employees picked
off for the next round of layoffs no
matter how well you do your job
businesses are always trying to maximize
profits and if they can reduce their
operating costs you know employee
paychecks by 35% while maintaining or
even reducing their profits by anything
less than 35% then that is a net
positive for the company it's an
unfortunate result of big business where
the lives of people are treated so
carelessly if only it was so simple as
hiring somebody who can do the job well
and does the job well and not having any
fear getting laid off for no real reason
but that doesn't seem to be the case
with any of these layoffs they're a mix
of incredibly hard workers some not so
hard workers and some people who just
play World of Warcraft for most of their
remote workday how does it
feel you treat me like you
do when you play
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