Tech giants are no longer the first choice for employment, and layoffs and austerity policies have made the industry lose its charm. Some employees are looking for career advancement in other fields.
Michael joined a tech giant in the spring of 2021 with the dream of competing with the best software engineers in the world. "They're working on very complex projects, and joining them means joining the best team. Feeling like you're working here boosts your personal brand value. ”
At first, everything went well. Michael has honed his skills by working on high-impact features and competing against senior developers. Generous perks are also the icing on the cake. "It's a typical tech company with huge benefits and a good work-life balance," he says, "and it's just too easy compared to my previous employers: free food, health payouts, and health insurance." The colleagues are also great, and the working environment is nice, although sometimes a bit like a cult. ”
But in March 2022, the first signal of change appeared. As the economy slowed, free laundry services were abolished. More cuts followed—a change to the dinner time for overtime employees clashed with the timing of the last free shuttle bus leaving the New York campus. Employees had to weigh free food and free home. "People complain, especially young people. It's a very pampered place. ”
A few months later, benefits cuts were followed by layoffs — Michael was one of 11,000 employees laid off in November of that year, a wave of layoffs that were part of a broader technology recession and industry-wide layoffs. His next step was to leave the tech industry altogether, and now he works for a large investment bank. "The job still offers interesting projects," says Michael, who feels his job is relatively more secure. "If you had asked me before, I would have said that I would go to another 'faang' company next. But there's something else outside of the tech industry. ”
Until recently, tech jobs — especially those of major players like Meta, Alphabet, and Amazon — were often considered among the most desirable jobs, offering six-figure salaries, lavish benefits, and the prospect of being at the forefront of innovation. But since the summer of 2022, the industry has been riddled with layoffs, uncertainty. In some cases, leaders have also imposed restrictions on remote work, making returning to the office a disciplinary punishment.
Recovery seems to be in sight. According to industry tracker LayoffsAccording to the FYI, in January 2024 alone, 23,670 employees were laid off at 85 tech companies, including Microsoft, Amazon, eBay and Google. This means that some employees are starting to look for work outside of their once competitive industries.
"IT used to be the most desirable career".
Before the layoffs, tech companies were known for their work culture, offering employees free benefits and state-of-the-art office amenities. But bringing in gourmet chefs and meditation rooms isn't just about keeping employees around for as long as possible – they're a means of attracting talent. Scott Dobroski, Career Trends Specialist at Indeed, says job seekers — especially in the tech industry — are sensitive to employer branding and company culture.
After the pandemic, the situation has changed. In the spring of 2022, with the recession, constantly** inflation and interest rates inhibited the company's growth. This initially led to a hiring freeze, then an industry-wide layoff at the end of 2022 that is still ongoing. "COVID was a once-in-a-generation event that changed the trajectory of companies, overestimating demand and sending them into a hiring spree," says Dobroski, "After a strong start to 2021, tech companies had to abruptly halt hiring. ”
As a result, the tech industry is no longer so ideal for many workers. According to Indeed's list of the best jobs for 2024, only three are tech jobs when measured by salary, flexibility, and development, compared to 11 in the 2023 edition.
"While tech jobs still offer high-paying and above-average flexible jobs, they have dropped significantly in terms of development," Dobroski said. Job seekers often want to join a company that is thriving, where they feel they can grow. But when layoffs are announced, it not only reduces their opportunities in the job market, but also damages the employer's reputation and sends a signal of uncertainty. ”
Tech jobs aren't just intimidating for job seekers. Current employees in the industry have also expressed disappointment.
Alessandra works for a blockchain technology company in London. She said that when she became an intern, she chose technology as her career the first time she stepped foot in her employer's corporate headquarters. "I was amazed by the office – it made me think that technology is the best way to work. Being fast-paced and innovative is what appeals to me the most: as if I can be a participant in something new. ”
Like many in the industry, Alessandra's company has been affected by the tech decline. By February 2023, the company shut down a blockchain product service. Layoffs have continued since then – her team has now shrunk fivefold. Employees are also required to work in the office three days a week or face penalties. "My workday went from being super stressful to being idle for long periods of time," she says. ”
Her disappointment was not limited to her company, but extended to the industry as a whole. "No matter what field of tech you get into, it seems to be a matter of luck. Now, artificial intelligence is on the rise, so everyone feels like they're being left behind. It's not just my company: the market itself doesn't know what it needs to do to succeed or where it's going. I no longer feel the inspiration, or the excitement I felt when I first entered the office. ”
"Glory days will return".
Dobroski believes that jobs in the tech industry will only become exciting again when the economy fully recovers, layoffs end, and companies resume hiring on a large scale.
Until then, only certain positions remain in demand. "History shows that when jobs grow, that's a signal that job seekers have an opportunity," he said. Currently, there are still some areas of the industry that are very attractive to tech talent, such as AI teams at big tech companies and startups. ”
Although Michael has left the tech industry, he said he would still consider working for a big tech company in the future. "The perks are great, you're driven to solve big problems that you can point to and say, 'I developed it.'" The glory days will return: after a few years of recession, it will return to the state it was in 2021. Tech talent is always in short supply. ”
But now, many tech workers are looking elsewhere. "Most of my colleagues feel the same way: we're trying to achieve something that doesn't have a goal," says Alessandra, "and seeing so many close colleagues suddenly fired, or resigned as a result, we lost faith in what we're trying to achieve." Most of us are planning to leave the company – and even some out of the industry. ”