One CNBC article estimates that America's biggest tech companies laid off more than 70,000 workers in the year leading up to mid-January 2023. These companies include Twitter, Microsoft, Google and Amazon. However, tech layoffs don't spell the end of job growth and lucrative opportunities. On the contrary, several tech positions remain highly sought after and are some of the most in-demand jobs today.
The Top Skills in Demand After Recent Tech Layoffs
While companies have pruned some parts of their workforces, they have refocused their efforts on others. Those areas call for the following skill sets and tech positions.
Investors worldwide poured $66.8 billion into artificial intelligence in 2021. Additionally, more than 65 tech companies in the AI space reached valuations of more than $1 billion. Needless to say, artificial intelligence is one of the most critical areas where companies continue to seek top talent.
Microsoft and Google signaled their focus on AI by investing in advanced chatbot technology. Google launched its ChatGPT rival named Bard, while Microsoft invested in ChatGPT and paired with its parent company to make its Bing search engine smarter.
The focus on artificial intelligence has also spurred the need for more cloud engineers. This tech role involves designing and implementing cloud services, such as Azure and AWS. Cloud engineers must demonstrate an awareness of the entire tech stack, from basic web development to containerized microservice applications.
Data security is a top concern for companies worldwide, which makes cybersecurity one of the most sought-after tech skill sets today. Companies need tech professionals who can develop, implement and test security protocols. They must also use tech tools to protect their networks from cyber threats such as malware, ransomware and data theft.
Businesses have begun to recognize the value of data science and its potential for driving decision-making processes. To capitalize on this shift, tech companies need professionals with experience in analytics, data engineering and machine learning. To qualify for these roles, tech professionals should have a working knowledge of Python, Java, SQL and C#.
The customer experience has become a critical part of business operations and marketing. As more people build virtual relationships with people and brands, companies need tech professionals who can design user interfaces that are attractive, intuitive and functional. UI designers must know how to create engaging layouts emphasizing product benefits and appealing to a wide range of users.
The State of the Big Tech Layoffs
Tech workers and the general public have raised concerns about the frequent layoffs in the tech market. However, MarketWatch suggests that these layoffs are less significant once economists examine the total numbers. For example, Amazon announced one of the biggest layoffs: 18,000 people. However, between 2021 and 2022, its workforce grew from 800,000 to 1.6 million people.
The numbers at Meta tell a similar tale. The company grew its workforce to more than 87,000 in 2022. In 2019, the number stood at just 45,000. It plans to lay off 11,000 people. Meanwhile, Microsoft hired roughly 77,000 people from 2019 to 2022 but then chose to lay off 10,000 workers.
It's also worth knowing that only some of the big tech companies have announced layoffs. Apple grew its workforce at a slower rate than other tech companies. Consequently, it has had no significant layoffs and has retained most of its workers.
The Implications for the Rest of the Economy
Some economists point out that big tech layoffs may have a positive trickle-down effect on other parts of the commercial world. How so?
Smaller Companies Can Attract Experienced Tech Workers
Startup tech companies have spent the past few years competing with corporate giants to attract top talent. Those tech titans have now released a wealth of talented workers into the job pool that smaller companies can hire. These workers can contribute knowledge and expertise to smaller companies, fueling faster innovation and growth.
Tech Workers Will Spread Out Into Other Industries
Tech companies are just some of the businesses that need experienced tech workers. Virtually any business operating in the modern world requires cybersecurity experts, software developers and other tech talents. These workers will now fill these roles in other industries, helping those companies to grow from the inside out.
Tech Layoffs Present New Opportunities for Investors
Companies that experience massive layoffs often become attractive to investors who can offer capital and expertise in restructuring operations. This could lead to new opportunities for tech workers willing to join a company in the aftermath of a layoff. These workers will likely fill the roles highlighted above.
Lean Companies Have Stronger Survival Ratings
Companies have cited high interest rates and fears of a recession as their top reasons for downsizing their teams. Downsizing makes operations leaner, especially if companies effectively reorganize business operations to match. This proactive approach could make these companies more likely to survive an economic downturn if one does occur.
The Role of Cloud Migration After Tech Layoffs
Moving to the cloud is another way companies worldwide have pruned operations to make them leaner. It reduces tech costs and the need for in-house tech teams. This could be an attractive option for companies looking to streamline processes, especially if they can choose reliable providers for cloud space and cloud computing software.
How well this works as a solution depends heavily on the migration process, as well as the knowledge and experience of the people managing it. Would you like to learn more about how to bring Cloudficiency to your migration project in the wake of tech layoffs? Contact us to get started.
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If you would like to learn more about how to bring Cloudficiency to your migration project, visit our website, or contact us.