The year 2023 was open in a big shock for many tech employees, as in the US alone 60,000 employees were sent home from the major tech companies. The big companies fired around 1-6% of their workforce. While IBM for example, fired only 1.5% of its workforce, and Meta fired 13% of its workforce – some other companies such as Google, Pinterest, Spotify, PayPal, eBay, Microsoft, and Dell fired around 3-7%.
There are a few reasons that lead to the wide layoffs in the tech sector. According to TechTarget, one of the main reasons is the economic downturn and the post-pandemic times. During the pandemic, the use of online services grew significantly, and as a result, many tech companies hired new employees, to enlarge their workforce and take advantage of the new situation. Now, in the post-pandemic times, the demand for those extra employees has grown smaller. Many of those new employees from the pandemic times were below the entry-level, and now while the companies try to cut off their expenses, those below-entry-level employees are the first to be sent home.
The New York Times attributes the wide layoffs in the tech industry to the slowdown of the rapid expansion in the tech sector. On the other hand, CNBC mainly attributes the layoffs to the deterioration of the economy.
With a different idea of reasoning these layoffs, stands Professor Jeffrey Pfeffer, Stanford graduate school of business. Prof. Pfeffer claims that layoff is an imitative behavior and that the reason for the wide layoffs is the fact that everybody else is doing it.Also read: Novel AI Review: Is It The Best Story Writing AI Tool? (2024 Guide)
On the opposite of the giant companies’ layoffs, stand companies who presented tremendous growth over the past year, and perhaps will not experience any wide layoffs as take place in the giant tech companies. Looking at the fastest growing tech companies in Europe over 2022 that raised over €50m, according to Sifted we can see growth from over 270% to 910% of the number of employees.
In parallel to the deceleration of rapid expansion in the giant tech companies, mostly based in the US, there is still rapid growth of smaller tech companies, which still hire and look for new employees to enlarge their workforce. There are still many positions in the tech sector that experience demand for new employees in 2023 and offer high salaries as is customary in the tech industry.
When looking at the top 10 in-demand tech jobs in 2023, we can find the following jobs:
When looking at the open vacancies for the top 10 in-demand tech jobs according to Expoint, we can see 5,000+ vacancies in the US, Canada, the UK, Ireland, and Australia, while the US is the leading country that offers the highest number of open vacancies.
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