Being let go is hard, especially with the cost of living on the rise, and talk of a recession looming. Earlier this month, Tesla founder
Elon Musk fired 7,500 Twitter staff, representing nearly 50% of its global workforce, just days after he took over the social-media company in a $44 billion deal.
Facebook’s parent Meta
also announced it would lay off 11,000 employees, equivalent to 13% of the social-media company’s employee base. And this week, Amazon
said it plans to let go 10,000 workers, about 3% of its white-collar employees, and signaled that there may be more cuts next year. Tech companies are facing strong headwinds. More than 59,000 people were laid off in the tech industry so far this year, according to compiled data by Challenger, Gray & Christmas for MarketWatch earlier this month.
“Tech companies are feeling strong headwinds. More than 59,000 people were laid off in the tech industry so far this year.”
— Challenger, Gray & Christmas
It’s increasingly hard for laid-off employees to make ends meet. Inflation stood at 7.7% in October compared to a year ago, slightly lower than the 40-year-high of 8.2% recorded in September. The Federal Reserve has raised rates six times so far this year to combat the rise in the cost of living. Interest-rate hikes make it more difficult for high-growth tech companies to deliver growth at the same momentum as previous years. The high interest-rate environment has made borrowing more expensive, and a strong dollar reduces the value of revenue from foreign markets. Those Fed rate hikes have also pushed the short-term borrowing rate to a target range of 3.75% to 4%, making everything from car loans to credit-card debt more expensive. In fact, the decline in tech hiring began around June — at the same time the Fed started raising interest rates, according to ZipRecruiter.com, a jobs search engine. But there is good news: The overall job market is still strong and, in some sectors, labor shortages still persist. Time for a reset Those who lost their jobs in recent months will have to face a hard reality: It might be hard to get a job that’s equivalent in seniority and compensation to the one you just left, said Renata Dionello, chief people officer of ZipRecruiter. As difficult as it might be at first, Dionello suggests telling yourself, “I’m going to see this as an opportunity.” “Remember this period as a period of reinvention, a period of discovery and a period of reconnecting with a bunch of people,” Dionello told MarketWatch. Those fortunate enough to have healthy severance package will likely have more time to pause and think about their long-term career goals, she said. Consider alternative sectors The U.S. economy gained a surprisingly strong 261,000 new jobs in October, underscoring the persistent strength of a labor market. There are jobs out there, so keep your skills fresh and think about developing new ones, Dionello said. Scoring a similar job in tech at the moment could take longer and you will likely face strict competition, said Glassdoor chief economist Aaron Terrazas. The recent layoffs released a lot of talented individuals into the job pool at the same time. A few other sectors that require people proficient in software and other technology skills include healthcare, government departments and education, said Julia Pollak, ch …