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The Mass layoff: Is this the next Dotcom bubble?
In 2022, almost 100,000 IT workers will lose their jobs and it might continue to the next year as tech industry enters a pull back period.
This may be the first time in your career that you, like the majority of the working population, have gone through a period of mass layoffs. The majority of people had more money and time than before thanks to governments injecting money into the economy and people working from home.
The tech sector began recruiting more workers to keep up with the demand for services as a result of the rising demand which also increased the valuations of tech companies to an all-time high.
Is the mass lay offs employees fault?
The economic stimulus caused these IT enterprises to grow their teams recklessly. The tech industry rode the wave that COVID-19 restrictions created because the companies’ metrics looked good, their revenues were growing to an all time high, and it was obvious that the only way to keep moving forward was to expand their workforce, develop more products, and enhance their existing services. However, with interest rates rising and governments cutting back on spending, this is no longer the case.
Tech companies with long-term projects in the way and the IT industry struggling due to the economic slowdown have led to many businesses rethinking their payroll to reduce expenses. These layoffs are not because the workers perform poorly; it’s the fault of the failing company.
If you lost your job, think of it as an opportunity to reorganize your finances and use the company you previously worked for to land your next position. If you still have a job but are worried about layoffs, research the potential areas of focus for the business and try to move more into those areas by getting educated and getting exposed.
