Hiring, Tech Recruitment, and Recent Industry Layoff Trends
As part of cost-cutting measures after Elon Musk's acquisition, Twitter let go nearly half of its workforce. Twitter layoffs are a part of a wider and more recent industry layoff trend in the tech recruitment and hiring landscape.
The parent company of Facebook, Meta, announced that it would let go of nearly 11,000 workers. There seems to be no stopping as more and more technology companies are likely to follow suit as the global economy slips into recession.
What is driving the recent layoff in the tech industry?
Multiple tech companies are reported to be laying off workers due to unchecked inflation and over-hiring in the tech recruitment space. The Department of Labor's October 2022 Jobs Report [Source: blog.dol.gov] revealed that the U.S. economy added 261,000 jobs, so layoff announcements surprise many. Despite being strong, that number is the weakest since December 2020, and it is beginning to slow down in the wake of the Federal Reserve's most recent increase in interest rates by 0.75%.
Many people think there have been so many layoffs in the tech industry because tech companies were able to prosper in COVID's induced remote world. These layoffs are also beneficial because they allow the tight job market to catch its breath and restore the proper balance between the demand for and supply of labor.
Moreover, there has been a hiring boom in the previous few years in the tech recruitment sector. Businesses have been optimistic because they expect a higher valuation and a large inflow of capital from venture capitalists. Most likely, the organizations were unable to foresee how quickly the pandemic's boom would fade.
Tech layoffs and hiring slowdowns are real
Not only startups in their early stages are suffering. With pressure to cut costs, rising inflation, an impending bear market, and rising interest rates, major tech companies like Meta, Salesforce, and Netflix have also recently announced hiring freezes or layoffs.
Even though they haven't made any official layoff announcements, industry giants Microsoft, upstart social media firms Snap, and cryptocurrency newcomer Coinbase have all slowed hiring as a result of disappointing quarterly results. The S&P 500 index, which is dominated by tech stocks, had lost more than 20% of its value since the year's beginning by late May.
Tech professionals are still in high demand
Even though some in the tech sector are being laid off, workers are still in high demand, and several companies' hiring departments are actively seeking out laid-off workers to fill those positions.
Data from CompTIA [Source: prnewswire.com], an information technology trade group, shows that the tech sector has added 175,700 jobs so far this year, up 46% from last year. The overall number of tech job postings, however, has begun to decline.
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