Tech layoffs have gripped headlines in recent months, causing professionals to question whether they would be next.
While seeing reports of layoffs in the thousands is certainly unnerving, they often overlook exactly why employers are taking this route after going on record-level hiring sprees.
The latter is exactly the issue: companies expected pandemic-era levels of demand to continue far into the future, but that just isn’t the case. As a result, usually reliable companies like Apple and Amazon are dealing with an influx of talent, without an influx of demand.
For example, Amazon became the second-largest employer during pandemic lockdowns after eagerly hiring thousands of workers to meet skyrocketing demand. It makes sense, too — consumers stuck at home had little options for basic delivery needs at the time, and Amazon filled that void.
However, its reign as the online marketplace of choice didn’t last.
Following the company firing 18,000 staffers earlier this month, CEO Andy Jassey stated that “companies that last a long time go through different phases. They’re not in heavy people expansion mode every year.”
This shows that demand is constantly fluctuating depending on external, often global factors. However, fortunately for recently laid-off tech workers, a study from ZipRecruiter shows that nearly 80% of these professionals were able to find a new job within three months.
