The TRAGIC Truth Behind Tech Layoffs (2024)

Summary

The 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

• 📑 The tech industry is experiencing significant layoffs, with major companies like Google, Amazon, and Snap cutting jobs, indicating a challenging job market.
• 💻 Despite the layoffs, there is still hope for engineers and tech professionals, as the demand for technical roles, especially in cybersecurity, continues to grow.
• 🔥 The LinkedIn Workforce Confidence Index suggests that job security is a growing concern among workers, reflecting the anxiety caused by the widespread layoffs.
• 👨‍💻 Non-engineering roles are being hit the hardest by layoffs, particularly at Meta (formerly Facebook), though tech roles are not entirely safe either.
• 🛠 The layoffs could be attributed to various factors, including overhiring during the pandemic and companies striving to increase their stock value artificially.
• 📈 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.
• 📊 The tech workforce is expected to grow, with a particular increase in cybersecurity roles, indicating a continuous need for tech professionals.
• 🧑‍💻 AI and automation are identified as key areas of growth and complexity in tech, demanding more sophisticated skills from professionals.
• 🚩 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.
• 📚 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

00:00

📉 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.

05:01

💼 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.

10:03

🚀 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.

Keywords

💡layoffs

Layoffs refer to the act of terminating employees from a company, often due to financial constraints or restructuring. In the context of the video, layoffs are a central theme, with major tech companies like Google, Amazon, and Snap implementing them, leading to increased anxiety among tech workers. The script discusses the impact of these layoffs on the tech job market and the potential reasons behind them, such as over-hiring during the pandemic or the desire to appear more valuable to stockholders.

💡tech industry

The tech industry encompasses companies that deal with technology-related products and services, including software development, hardware manufacturing, and digital services. In the video, the tech industry is the main focus, with a discussion on the current state of employment within it, the impact of layoffs, and the future job outlook. The script highlights the resilience and growth of the tech industry despite the layoffs, indicating an upward trend in tech jobs and a high demand for cybersecurity professionals.

💡job market

The job market refers to the environment in which employers and job seekers interact, including the availability of jobs and the number of people seeking employment. The video discusses the job market in relation to the tech industry, exploring whether the high-profile layoffs indicate a stagnant or shrinking job market. It provides data on job postings and the number of people applying for tech jobs, suggesting that despite layoffs, there are still opportunities for job seekers in the tech field.

💡

💡cybersecurity

Cybersecurity is the practice of protecting systems, networks, and data from digital attacks. In the video, cybersecurity is highlighted as a growing field within the tech industry, with a significant demand for professionals. The script mentions that despite the layoffs, cybersecurity jobs are projected to grow by 32% by 2032, indicating a strong future outlook for this sector.

💡AI specialists

AI specialists are professionals who design, develop, and implement artificial intelligence systems and solutions. In the context of the video, there is a mention of an increased demand for AI specialists due to the growing complexity of technology and the need for advanced skills to keep up with the times. The script suggests that AI is making technology more sophisticated, leading to a natural increase in demand for experts in this area.

💡workforce

The workforce refers to the total number of people employed in a particular industry or economy. In the video, the term is used to discuss the tech industry workforce, including the number of people potentially entering it and those already seeking employment. The script provides statistics on the number of people turning 18 and entering the workforce, as well as those already in the tech industry looking for new jobs.

💡job postings

Job postings are advertisements or announcements made by employers to fill open positions within their organizations. In the video, job postings are a key indicator of the job market's health, with a focus on the number of active and new listings in the tech industry. The script discusses the trend of job postings decreasing but still remaining at a level that suggests opportunities for job seekers.

💡economic trends

Economic trends refer to the patterns and directions in economic indicators over time, such as inflation rates, unemployment rates, and consumer spending. In the video, economic trends are briefly mentioned in the context of layoffs, with the script noting that inflation rates have been trending down after reaching a 40-year high. The discussion implies that economic trends can influence business decisions, including layoffs and hiring practices.

💡side hustles

Side hustles are secondary income-generating activities that individuals engage in alongside their primary jobs. In the video, side hustles are presented as a strategy for workers to diversify their income sources and protect themselves from the uncertainty of job security. The script suggests that having side projects can provide a safety net in the face of potential layoffs and economic instability.

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 [ __ ] 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 [ __ ] 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