In the fast-paced tech industry in the past, where innovation was constantly happening, a new trend occurred: mass layoffs. Once a golden ticket to opportunity, the tech industry is now grappling with the uncertainty of job security. 

Well-known tech companies like Google, Amazon, and Apple have been implementing mass layoffs. After years of expansion and building, many companies have started to scale back and shift their priorities, according to The Journal of Economic Prospects. The number of job cuts affects thousands of workers, leaving them to wonder: “How do I find a job now?”

Rise and fall of tech

Over the past decade, the tech industry has grown incredibly. Success stories of companies like Microsoft and Facebook became symbols of opportunity, attracting talent from all over. Many high school students saw a path to success with the allure of high-paying jobs and the chance to work on cutting-edge products such as virtual reality, AI tools, and phones. 

The reality is shifting as companies face economic turbulence and the workforce is being reduced. It leaves many to question if the dream is still plausible.

The reality of layoffs 

Dominic Bradford was an AI engineer at a prominent company for 5 years. He found himself among a significant number of employees who were laid off as part of a broad cost-cutting initiative. Before this, the company had been eager to integrate cutting-edge AI technologies like large language models, but the financial strain proved to be a bigger driver of layoffs than the new systems. 

“The company was burning through cash faster than it could generate it,” Bradford said, “They needed to extend their runway, and layoffs were a way to do that.” Despite the fear of AI entering the tech industry, Bradford believes AI will not replace large numbers of engineers in the long run. Layoffs were, instead, strategic shifts and broader market forces, including overhiring during the pandemic, rising interest rates, and the rise of offshoring labor.

The mass layoffs have sparked debates about what caused all the companies to downsize and trim their employees. It is believed the cause of this is the economic downturn, which has led to decreased consumer spending. During the pandemic, companies frantically hired employees to anticipate continued growth. However, nowadays, with inflation rising, demand has slowed, leaving companies overstaffed, according to Amazon Layoffs Hit Employees.

“Interest rates and inflation were the main cause of layoffs in tech across the country,” said William Caddel, a tech employee. 

It is also argued that layoffs are part of a shift in the tech industry’s priorities. With the improvement of artificial intelligence, companies are realigning their focus and reevaluating their resources. It causes roles to be phased out, so socialized positions can help with the constantly changing market according to AI, automation, and the future of work.

Job hunting in a crowded market 

The impact of the layoffs extended beyond Bradford’s previous company; it is part of a broader trend in the tech industry. After rapid expansion, companies are now adjusting to compensate for over-hiring.

“The job search has been a roller coaster,” Bradford said. “Early on, a few personal connections and recruiters helped me land interviews, but now that I am cold applying, it is much harder.”

The interview process in tech is rigorous. It is comprised of multiple stages to assess technical skills and one’s ability to work within a team. Bradford was faced with juggling various rounds of interviews while also preparing for technical screens and architecture design assessments. 

“Interviewing is its skill. If you do not practice, you get rusty,” Bradford said. 

Chad Miller had previously dedicated 27 years to a prominent tech company as a technical sales manager. Throughout his career, he built relationships with clients and employees and helped grow the company. His previous company participated in yearly layoffs in small rounds to make modifications to the workforce every year. This year, he was affected by around 30 other employees. 

“My experience with the job search has been surprisingly unproductive,” Miller said.

He applied to 106 jobs, got rejected by 55 companies through email, did not hear back from 12, and got two interviews, but in the end, was left with no offers.

Employment rates for individuals laid off in the tech industry are significantly lower than those in other sectors and industries.

The future of jobs in tech

Looking towards the future, Bradford is concerned about the trajectory of the tech industry. 

“Tech has been hyped for so long, and it feels like we are in the middle of a correction,” Bradford said. 

There are now fewer job postings for entry-level positions. Highly competitive positions are reserved for those more experienced in the field, causing the prospects for new graduates to appear dim. According to Bradford, high-paying tech jobs may be behind us. 

“The supply and demand curve will probably never be what it was,” Bradford said. “We will still need engineers, but the pay will not be as high, and it might take longer to find a role.”

Bradford also noted that the AI industry was not immune to previous downturns, such as the dot-com bubble. 

High school students’ futures

“Gen Z believes a successful salary to be considered financially successful is around $700,000 or $400,000, which is significantly higher than the expectations of the existing large-scale companies, that’s not their typical pay band, to be expectations and reality,” Miller said.

The waves of layoffs complicate the picture for high school students planning to enter the tech industry. Even though it is still one of the most lucrative and fast-growing sectors in the economy, offering opportunities in fields such as software development, cybersecurity, and machine learning, the mass layoffs signal a need for caution. 

“The tech industry was a definite possibility and something I am considering. Seeing the mass layoffs shows me the volatility and possible instability of entering the tech industry. I will consider it in the future,” said Kaden Praditkul, a Carlmont sophomore.

This leads to students needing to adapt to a field where job security seems less certain. Bradford stressed the importance of flexibility and diversification for students hoping to enter the tech world.

“Get creative in your job search. Companies like Home Depot and Walmart have big tech teams. Even businesses need engineers now, so do not limit yourself to big players like FAANG,” Bradford said.

According to Bradford, there is also a growing importance of non-technical roles that rely on tech skills, such as project management or marketing in tech-adjacent fields. 

“Unpaid internships, primarily for students, were pretty much unaffected,” Caddel said.

A vital note Bradford states for students interested in the tech industry is to be ready to adapt.

“You need to develop your skill set continuously,” Bradford said.

Professionals should view employment as a transaction that consists of both sides constantly evaluating the value of the relationship.

Ultimately, according to Miller, the future of tech will remain bright, but it will require more than just technical skills to succeed. 

“Tech is still growing, but the game has changed. You have to stay sharp, keep learning, and be prepared for a more competitive environment,” Bradford said.