What are the lessons that tech companies can learn from the 2023 layoffs
Hamza Afzal Butt
14 replies
The tech industry has been hit hard by layoffs in 2023, with tens of thousands of workers losing their jobs. This starkly contrasts the hiring sprees we saw in 2020 and 2021, as tech companies scrambled to meet the increased demand for their products and services during the pandemic.
Several factors have contributed to the current wave of layoffs, including the uncertain global economy, rising inflation, and the war in Ukraine. However, it is also clear that many tech companies overhired during the pandemic and now must make difficult decisions to reduce costs.
Here is the full link - https://www.computerworld.com/ar...
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Stefan Pettersson@stpe
With hindsight a lot of decision can easily be judged. But I think we need to separate decision from result. For example, me taking all my savings and buying Tesla stock. Then 3 months later selling them with a big profit. That is a bad decision with a great result. Instead, I could've diversified and put the money into a global index fund. Probably a much wiser decision, but the result could also be a loss.
Some areas did a lot of progress during the pandemic. Areas that previously saw a gradual increase in digital adoption all of a sudden made 10 years of progress in half a year. Would it have been the right decision for companies to just continue as usual and "hoping" it would be temporary. Or would it be better to bet a lot on it and try to make use of the opportunity? I would say the latter (with a bit of risk in mind).
And after all, a business is a business. It is not well-fare. As long as contracts are respected, it is part of business to increase, decrease and shift workforce as needed.
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Companies can learn the importance of strategic planning, diversification, and employee support during economic downturns.
Thank you for sharing!! Is true that many big tech companies were notorious for massive lay-offs. Last years were also full of unexpected external events and economics downturns. Hopefully in years to come companies will be more prepared and have better strategy!
Excellent piece of information. THanks for sharing Hamza.
Launching soon!
Better forecasting VS a boom and bust approach to hiring. I saw a lot of "oh we have a huge problem - solution: hire more devs. Very rarely did that solve the issue it just created a bigger team for the dev leads / department heads to manage. Id personally rather increase runway timeline MOST times Vs hiring at scale in a knee jerk capacity.
The 2023 layoffs in the tech industry offer some valuable lessons for companies to consider. First and foremost, they highlight the importance of adaptability in a constantly evolving market. Tech firms should remain agile and ready to pivot when necessary. These layoffs also underscore the significance of a strong company culture and support systems for affected employees. Showing empathy and providing assistance to those impacted can go a long way in maintaining the trust and morale of the remaining workforce. Moreover, the 2023 layoffs emphasize the need for prudent financial management, encouraging companies to have a safety net for challenging times. In essence, while these situations are never easy, they can serve as opportunities for growth, resilience, and learning within the tech industry.
The layoffs of 2023 underscored the significance of effective workforce planning. Tech companies should learn to anticipate changes in the industry and align their human resources accordingly.
Conclude your response by expressing optimism about the tech industry's ability to learn and adapt, emphasizing that these lessons can pave the way for a more sustainable and compassionate future for tech companies and their employees.
Apart from tech companies, here's my two-cents toward individuals who are targeting tech-giants to apply or aspire to get enrolled: A candidate must prepare himself/herself to be fit in a specific industry rather than targeting a specific tech company or a tech-giant. If one can create a versatile work profile to that specific industry, it's a huge advantage for that candidate within that industry rather than narrowing down to a specific company.
To be honest, I think the layoffs are just a natural thing in business.
It needs to happen periodically as it keeps companies efficient
Don't get me wrong, it sucks!
But no matter how careful you are with hiring, there will always be a range of outputs from employees, and getting rid of the low performers is necessary for an efficient company
It is a very helpful study.
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It is vital to risk hedging
Thanks for sharing! There's always a gap between tech and the things people truly want. Tech companies should create products that users genuinely need, so they can deliver real value.