Tech Layoffs: What They Mean for the Labor Market

Recent waves of layoffs in the technology sector have received plenty of mainstream attention, from shock at the sheer numbers involved to concerns over how they may handcuff ethical tech innovation. But what has been discussed less often in the public forum are the real-life effects of those cuts on the future job prospects of the tens of thousands of people recently turned loose by tech companies.

Amid recent reports that Salesforce was considering another round of layoffs – adding to the 10 percent of the CRM software company’s workforce that was lopped from its rolls in January – it’s impossible for anyone following the tech sector (and employment in general) to wonder: What happens next? Should we expect other organizations in the space to continue downsizing? Can progress – true product-and-services innovation, not just smoke-and-mirrors growth on quarterly reports – be achieved with the skeleton crews left behind? And what does it all mean for the workers currently on the outside looking in?

How Contractors Can Help Companies Avoid Layoffs in Technology 

Perhaps the most striking aspect of the recent tech layoffs is the lack of evidence that they even work. Reducing staff may be the swiftest and boldest way to demonstrate to a board of directors and the public that a company’s leadership is serious about cutting costs and achieving solvency. But if anything, research on the subject suggests that payroll-slashing organizations may simply be trading long-term pain for short-term relief.

Even if the intention of these companies is to simply rebalance their workforces, it’s important for everyone involved to understand how we arrived here. High times and ambitious initiatives led to a gold rush on tech talent in 2022 – just ahead of a gut punch of an economic downturn. Could those conditions have been anticipated? More importantly, is there a way for savvy organizations to strive for growth while hedging against exactly these sorts of unforeseen market declines?

The easy answer is yes. Cultivating and strategically curating an independent contractor workforce may be the best method for companies – in tech or otherwise – to avoid over-committing to permanent staff while continuing to take steps toward meeting their organizational goals. Even now, in the aftermath of (or perhaps amid) the waves of layoffs in the tech sector, employers have an opportunity to sift through the best available prospects to land skilled talent that they may not have previously been able to access.

An Open Window of Opportunity

For all the professional chaos and personal heartache that layoffs in technology have caused over the past few months, there is a silver lining of sorts – and not only for employers. No worker wishes for the rug to be pulled out from under their feet, but the reality is that a layoff in the tech sector at this time can create a window for professional advancement. Top tech companies that have scaled back staff won’t simply sit on their hands until the economy turns again. Objectives must be met. Growth must be spurred. Talent must be acquired to meet these demands.

Independent contractors are often paid at higher rates than permanent employees, and contracting can offer the foothold into a coveted company that a worker searching for a staff position may have otherwise been denied. Opportunities to hone new competencies or pad a resume with experience working for a preferred employer are some of the advantages of contract work.

And PeopleCaddie can help. Whether you’re an employer needing specialized, short-term help or a skilled candidate searching for new and more lucrative opportunities, PeopleCaddie can connect you with the resources you need. Our proprietary platform allows prospects to add their profiles to our contractor network, from which our partner clients identify the talent that best fits their needs. In and outside the technology space, PeopleCaddie quickly connects employers and employees in professional engagements that reward workers and organizations alike.

If you’ve recently been laid off, you may want to consider entering the contingent labor pool. Contact PeopleCaddie to find out how our talent cloud helps contingent laborers build their businesses.

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