The Global Talent Crunch: Is the War for Tech Talent Over?

Technology is around us: social media, cashless transactions, automated processes—you name it. Because of technology’s benefits, it’s no wonder many professionals are opting to have a career in IT. As IT professionals, their contribution to the ever-changing technology landscape will be greatly appreciated as they rally together to bring the digital future closer to the present. 

Unfortunately, there is a major snag in this hopeful vision for IT professionals. Some organizations, including top technology companies like Microsoft and Netflix, have resorted to laying off many tech workers for several reasons. There are reports of job offers rescinded, which can eventually threaten IT professionals’ and fresh graduates’ careers. 

This poses the question: is the war of companies for tech talent still happening? Does that mean, for a tech professional like you, it’s time to switch to a new career altogether? Weigh your options first and understand what is truly happening regarding tech jobs and their demand within the tech industry. 


The situation: tech talents are being driven away from companies. 

As reported last June this year, at least 21,500 tech employees have lost their jobs. In May alone, laid-off IT workers increased by about 780 percent. An estimated 150 US companies have let go of tech workers for many reasons. 

This particular trend in job losses is the stark opposite of the Great Resignation. In 2021, many American workers quit their jobs in search of greener pastures and better working situations. With over 47 million leaving their posts a year before, the tables have indeed turned for tech companies, who are, unfortunately, the ones telling employees to go.

Microsoft was the first Big Tech company to start with the massive layoffs, with one percent of its estimated 1.8 million employees feeling the wrath across national offices and product divisions. Likewise, Netflix experienced losses in revenue and subscriber count, probably due to a rise in competition, which led them to let go of 450 tech workers between May and June 2022. 

Soon, other tech bigwigs joined the bandwagon of letting IT workers go. Tesla closed their San Mateo office, which led to the joblessness of 229 employees, Apple bid goodbye to nearly 100 contractual employees, and Google imposed a hiring freeze because of two quarters of lower earnings than expected. These are just the trend in bigger companies. Small and medium enterprises have also felt the need to nip their losses in the bud by letting go of some IT workers.

Another notable instance was the recent string of calls conducted by Twitter to revoke job offers to fresh tech graduates who previously received a contract. With many graduates entering the IT field hoping to be in jobs they will thrive, this is another looming dilemma. As companies get stricter on the number of tech employees they can support, where will these graduates go? 

One reason for the mass layoffs was the fall of cryptocurrency. The recent dive in cryptocurrency prices was a red flag for companies such as Coinbase Global, 1 Gemini, BlockFi, and CoinFLEX. The perceived “crypto winter,” or when prices in the crypto market have contracted and remained low, and companies dependent on cryptocurrency have decided to let go of their workers in fear of not having enough for their salaries. 


Why are companies choosing to revoke employment of their tech workforce? 

Aside from the assumed crypto winter, a lot of factors contributed to this dwindling demand for tech talent, with reasons ranging from tighter budgets to redundancies: 

  • Redundant positions. Some companies have chosen to let go of employees who may not be contributing to an ROI. There are positions with menial tasks that can only contribute minimally to the organization’s bottom line. Keeping them around will only resort to no work for them but a responsibility to keep them on the payroll. 


  • Worldwide economic crash. The Ukraine-Russia war alarms us of various economic problems, such as rising inflation rates spike up living costs. Tech companies are left with the dilemma of either keeping productivity up or lessening expenses. Of course, the latter is a quicker and more long-term fix. Unfortunately, this includes letting go of employees. 


  • Pressure from investors. With knowledge of the economic downturn, investors would like to know if the tech companies where they put money are taking enough action to mitigate threats to income. Even if the organization is not affected by such monetary concerns, investors still want to feel that the company has initiatives in place in the face of a crisis.For instance, Israeli company OpenWeb earned $150 million last November 2021 after it let go of 14 employees. While the company is still afloat with income, their move to revoke the employment of some tech workers sat well with their US investors.  


  • Part of efforts to reduce costs. Sadly, the pandemic resulted in layoffs for tech companies and many organizations worldwide. As a result, many business decisions had to be made, causing their workforce to shrink. Such decisions include opting for smaller offices, streamlining workloads by opting for apps instead of actual people, and choosing to hire contractors instead of full-time employees. 


What can tech professionals do during this so-called war? 

The war for tech talent is not yet over, but as long as the world runs on the technologies that are part of everyday life, professionals must adjust instead of giving up. In fact, tech jobs like computer programmers, system analysts, and database administrations remain in demand this year, with salaries rising up to six digits. While jumping to seemingly greener pastures may sound like the only solution, try to see how your technical skills and knowledge can still find a place in tech. 

Being on the lookout for tech job openings is one way to go about this dilemma, but you may also want to consider the following: 


  • Look for tech positions in non-tech companies. As mentioned, technology is everywhere. Schools, hospitals, government offices, and so much more: these organizations likely have tech concerns, such as internet connectivity, cybersecurity, automation, or app development. You may want to approach these organizations to see if they will need your tech expertise. 


  • Update your skills and diversify your resume. Technology may have already come a long way, but it continues to grow. User experience, big data, and quantum computing are only examples of fields that didn’t exist before. Now, they are part of in-demand tech jobs.Perhaps, you can learn about the present-day emerging tech and develop new skills to add them to your competencies. There are online courses you can take, with a number of them even for free. You can also look for volunteer opportunities for you to practice these skills. Even if these are pro bono work, they count as professional experience and will boost your resume. 


  • Work with a staffing agency. Chances are, they are well-informed about which companies you can visit and offer your technical know-how. What’s good about getting the service of a staffing agency is that they are focused on landing you that next job right away. Despite the difficulty you face as a tech professional, know that staffing agencies will keep you motivated to land your dream job. 


Integrity, honesty, innovation, loyalty: our arsenal of values makes us at Focus the right staffing agency for tech professionals like you who believe the war for tech talent is far from over. With 25 years of undisputed top-caliber service in recruitment, we strive to provide an atmosphere that will only inspire people to become better in their professional and personal lives. Ask any of our past clients, and we guarantee they’ll only have the best things to say about Focus. 

Let us guide you in this battle and get you that job immediately. Contact Focus now. 

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