Name a big tech company. Facebook. Amazon. Alphabet. Keep going, and there’s a good chance the name that pops into your head laid off workers in 2022 or early 2023.
In fact, nearly 1,000 tech companies laid off more than 150,000 workers in 2022. Meta, for example, laid off over 11,000 employees, while Amazon parted ways with more than 18,000.
Workers from nearly every sector of the tech world have felt the recession’s wrath.
While many tech companies are slashing their workforce to weather the economic storm, others are thriving—and hiring in droves. For those growing, especially small-to-medium businesses (SMBs), there’s an unprecedented opportunity to swoop in and grab talent from some of the world’s most prestigious tech companies.
What’s Going on With Tech Layoffs & Hiring?
Tech companies of all shapes and sizes are in a constant battle for top talent. The battle’s significantly intensified as many companies adopt a remote-first workforce. For the first time, tech companies aren’t just in a recruiting war with others nearby—for example, NYC or Silicon Valley—they’re battling with any company willing to give workers the flexibility to work from anywhere.
For SMBs in growing sectors—think IT services and cybersecurity—this makes recruiting and hiring a constant challenge. With big tech companies offering flexibility, why wouldn’t top talent obsess about securing these gigs? In the booming tech industry, employment companies like Meta, Amazon, and Apple are a right of passage to the promised land.
This left smaller, but no less impactful, tech companies recruiting from a smaller pool of talent.
Was this pool any less valuable? Absolutely not. But, it puts the less “glamorous” tech companies at a disadvantage.
With top talent getting the boot from their “dream jobs,” SMBs in rapidly growing sectors have the opportunity to woo them through their doors.
But to do that, they must recruit with their wants and needs in mind. Of course, getting laid off stinks, but most millennials, and forthcoming generation Z, have a set of standards they’re unlikely to compromise on.
For example, a good work-life balance that prioritizes their mental health topped the list of wants for both generations. A sense of meaning is important as well.
So, although smaller tech companies might not have the “street cred” of the big dogs, they can still attract this growing pool of top talent by appealing to their wants and showing them that the grass is greener outside the bright lights of big cities.
A growing portion of this ever-increasing pool will be left with a bad taste in their mouths and eager to explore stability elsewhere. SMBs must realize the opportunity and invest in recruiting and staffing solutions that get their attention.
“Companies across a broad spectrum of industries are finding themselves face to face with a goldmine of talent that can fill key technology focused roles” said our co-founder, Ed Leva. “I’ve worked in the staffing and recruiting industry for 30 years, and this is one of the only times small and medium sized companies have a direct path to acquire talent from enterprise companies like Meta, Amazon, Microsoft, and other notable names.” In addition, he said, “With a fast-acting strategy, companies can swoop in and grab the industry’s best to transform their businesses. It’s a once-in-generation opportunity.”
How Did We Get Here & Where Are We Going?
Mass layoffs by some of the world’s biggest—and most profitable—companies may seem surprising. But it’s not.
For many of these companies, the pandemic brought rapid growth. With that came a massive wave of hires. But, with the market slowing and recession impacting every corner of the world, it’s quickly become evident that these companies grew too quickly.
Now, they’re cutting costs.
From a business case, growing at this pace seems rational. And when the market’s booming, it is. But this reckless hiring often leads to trouble down the road. While more top talent is available than ever, mass hiring is still dangerous. Growing tech companies should look at 2023 as an opportunity to power up their workforce, but they must do it responsibly.
Do that, and 2023 and beyond will be bright.
Reach out today to learn how we can help you recruit and acquire top tech talent from the world’s biggest companies.