Whether we’re nearing recession or not, the slowdown in the tech market is a given. Does it mean developers should start worrying about their careers? Check out our deep dive into the 2023 tech layoffs the industry is already talking about.
After a few years of intense growth, the tech industry is slowing down. This phenomenon is part of an important trend, observed in several sectors and caused by the stagnation of the world market. Our economy, already affected by the pandemic, has changed radically with the Russian aggression against Ukraine. Inflation has risen significantly, and with it the cost of living, real estate prices, and interest rates.
All these variables combined should have an influence on several sectors, particularly those that until now have been in continuous growth, such as IT. Does it mean IT professionals need to worry about their future? We wouldn’t say it. We break down the current circumstances so you can better understand its background and what it means for technology.
Tech layoffs in 2023: the background
In such a hostile economic landscape, we are less willing to spend and invest, which can lead to a recession in the worst case. Some claim that we are already experiencing it (however, US GDP rose again in the last quarter, so that may be debatable). This sentiment doesn’t help tech companies that sometimes provide essential services but more often than not support innovation, which is not a priority spend.
This business landscape is coupled with a glut of new talent in the IT industry. The pandemic has triggered the great resignation trend. Many people would leave jobs they were dissatisfied with and seek new positions or change their career paths to more profitable ones. TI is known for paying well, which is why it became one of the most popular options. That has resulted in a flood of juniors in the IT market, making it much more difficult to break into this industry than in the past.
At the same time, inflation has raised the salary expectations of teams, challenging the budgets of technology companies. In order to meet them, they are forced to cut spending in other fields. All of these factors combined are at the heart of the slowdown in the tech industry. Now, let’s talk about what it means to you as an IT professional, aspiring or well established.
IT Jobs in 2023: Who Should Worry About Layoffs?
We would say that, as a developer, you do not run the risk of losing your job in 2023, considering that the demand for professionals in this sector remains high. Those most affected by the technology slowdown will actually be those who have not yet entered the industry but were hoping to manage in the near future. The huge talent pool is raising the threshold of entry, and in the face of the recession, most tech companies are limiting the budget for training programs and reducing the number of IT job opportunities on offer.
Keep in mind, however, that it is not a rule for all niches. For example, if you look at blockchain development services, you’ll notice that the software houses that specialize in it continue to grow and recruit professionals all the time. Regardless of the possibility of a recession, we are currently experiencing significant changes that require technological innovation (AI, web 3.0, cryptocurrencies, NFTs, rapid development of e-commerce).
The positions of specialists with experience and knowledge in machine learning, deep learning and other artificial intelligence solutions such as IoT will also remain secure. What can happen is that tech companies cut their training budget and hire fewer people, but the “great reset” scenario is pretty far-fetched.
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Categories: Technology
Source: vtt.edu.vn