Why are Tech Layoffs Happening? (and How to Avoid Them)

The most distressing scenario for web developers is undoubtedly hearing about potential layoffs within their company. Regrettably, major corporations, including Google and Twitter, have had to let go of a significant number of employees. This ongoing market volatility has had a detrimental effect on the developer community. It's likely you've witnessed colleagues being dismissed due to corporate downsizing or underperformance in an increasingly disruptive market.

The anxiety that you could be next is alarming. If you've been in this situation, our hearts go out to you and we sincerely wish you the best of luck for the road ahead. If on the other hand, you're trying to steer clear of such situations this blog is for you. 

The recent wave of tech layoffs harks back to the unsettling climate of 2008, when major tech companies like Google underwent massive workforce reductions. And the fear of going to the office every day hoping not to get this news is never easy. The state of the market is not looking good with recent layoffs at big firms like Stripe and Lyft and impending layoffs at Meta. 

The fact that 53% of engineers who had been laid off hadn't found a new job in six months, according to a recent study on the Blind, is even more concerning. And if you're working on a working visa in the US, the stakes are even higher for you. 

Why are Layoffs 2023 Happening?

The tech industry experiences rapid changes and shifts in demand and supply. Economic downturns can often result in decreased customer demand. Thus, companies adjust their workforce to align with the prevailing market conditions.

During the COVID-19 pandemic, FAANG companies saw a surge in business, necessitating an increase in their workforce to meet escalating demands. However, as conditions began to normalize post-pandemic, demand fell, leading to the unfortunate necessity of substantial employee layoffs.

Assess your Job Security

Now that the world has become more unpredictable, understanding where you stand in the company is important. It is crucial to take a moment and assess your job security. 

You can start by asking yourself these important questions:

• What is my company's financial standing?

• How was my last performance review?

• Am I working on an important project?

• Should I stay or leave the company?

How is my company's financial standing?

This question is relatively easy to navigate. If you're working at a public organization, you can evaluate the financial standings via stock prices, earning reports, and SEC filings. On the other hand, private companies do not like to share such things publicly. But you can always look for signs and evaluate your company's financial conditions.

How was my last performance review?

Companies can not afford to lose their best-performing employees. That is why they look for employees who did not work well in the past months. Now we can not guarantee anything. Just because your last performance review was great does not mean you should not look out. But that can mean that you're on a safer side. 

But if your last performance review was not good, it is better to start looking around for jobs. It is better to explain to the hiring manager why your performance review could have been better while you're employed rather than being jobless. 

Are you working on a critical project?

Some projects are more important than others. That means they generate more revenue, have more demand, and work well for the company. And companies tend to hold onto the employees working on important projects. If you're not working on an important task, the chances are more that you will be under the radar. The more important the project is, the more secure your job will be. 

Should I stay or leave the company?

The answer to this question relies on the results of the above-mentioned questions. If you plan to stick around with the company, ensure that you are involved more in the important tasks and have good relations with your team lead and hiring manager. 

But if you plan to leave your current job (or are laid off and looking for another job), your best option is to look for companies with broad hiring freezes but still looking to fill important positions. Apply for the positions in companies that are best suited for you and start your interview prep. A good interview leaves a remarkable impression on hiring managers that will help you stand out from the competition. 

How to Prepare for a Recession?

Regardless of your job security, it is always important to be prepared for all the circumstances. Even if you're working in a senior-level position, you must take the matter into your own hands and work on yourself. 

Here are some tips for preparing yourself for the job search: 

Keep your Skills Sharp

The tech industry is constantly changing. So it is important to keep an eye on current trends and sharpen your skills accordingly. Learn what skills are in demand and get your hands on those skills. Practice what you're learning on your current job or real-life problems. 

Learn new Technologies and Languages.

The developer's life is about coding and learning new stacks. Do not stop yourself from expanding your horizons, learning new languages and technologies to polish your skills. There are many tech stacks and languages that are always in demand, like Python, C#, Swift, or REACT. We suggest taking certifications from well-known sources and practicing the stacks as well. 

Update your Resume 

Your resume is what gets your foot in the door. Make sure it's up-to-date and free of glaring mistakes or grammatical errors. Customize your resume according to the job you’re applying for. Use appropriate spacing, headings, and bullet points to make it look more professional and clean. 

If your work produces quantifiable results, be sure to include that information! 

Brush up on your Coding Interview Skills 

It is important to focus on both technical and behavioral skills so you can present your best during the interview. Improve your interview skills by practicing the most commonly asked questions. Learn more about the tech interviews and test yourself. Research the company that you're interviewing at so you understand their organizational goals, culture, and expectations. 

Wrapping Up

Layoffs are always challenging for everyone. So, be sure to prepare yourself before it happens. Polish your skills, stay current with market trends, and never stop learning. 

Educative offers interactive learning courses for developers to polish their skills and improve productivity. Head over to explore the best courses and personalized paths for a successful development journey. 

Happy Learning!