The tech sector is facing a new wave of layoffs, how can you prepare?

After a series of brutal high-profile layoffs in 2022 and 2023, job cuts are bringing an unwelcome return to the tech sector. Although the rounds of layoffs were not as numerous and swift in the first quarter of 2024 as last year, the effect is still destabilizing and has led some commentators to expect the same to be true for the rest of the year.

Editor's note: This article is promotional content for Jobbio and has nothing to do with the editorial opinion of nextpit. Written by Dara Flynn.

One of the reasons often cited is stubborn market conditions, meaning companies are simply unable to achieve their goals. The shift from a post-Covid growth mindset to an efficiency mindset – synonymous with downsizing – is, according to companies, the source of most downsizing measures.

On the other hand, there is also speculation that tech companies are not simply fixing pandemic-era gluts in a market driven by high fuel costs, the impact of wars, inflation and high interest rates.

Instead, some companies are suspected of subtly shedding people to move to AI-based models, as evidenced by the fact that Microsoft laid off 10,000 employees around the time it announced plans to invest $10 billion in OpenAI. When the biggest tech players shed employees earlier this year, the cuts were smaller and more targeted, rather than aimed at reducing payroll. Making room for artificial intelligence seems to be the underlying rationale.

This is why AI-related functions promise to be more powerful, at least in the short and medium term. Instead, operations that an algorithm can easily perform are eliminated. Data analysts, non-specialist software developers and general IT support: please note.

In Europe, labor laws are generally much more favorable to workers, which partly explains why layoffs in the United States tend to be more brutal, affect more people, and occur more frequently than in Europe. , even in American companies.

These laws are particularly strict in France where, despite their best efforts, Google and Amazon have struggled to downsize their workforces.

In the European Union, however, layoffs at US tech companies have become more frequent: recently Twitter, Stripe, PayPal, IBM, Hubspot and Yahoo all cut jobs in France (as well as Germany, Spain, Italy, Portugal , Sweden and Ireland).

Paris, of course, is the epicenter of layoffs in French tech. Cinpress, Payfit (which also closed its German headquarters), Jellysmack and ManoMano suffered triple-digit layoffs last year. In 2024, payments processor Worldline sought to lay off around 1,400 people, while bank Société Générale considered 900 job cuts at its headquarters.

If you work in technology, it's an open question whether you'll ever be able to get comfortable. Tech companies tend to hire in droves and in waves—chances are, if you jump overboard, you'll catch the next wave right after. But there are tangible things to consider.

Increase ROI (return on investment)

Knowing you are an asset is the first step. Increasing your value as an asset is the rest. Keep in mind that 70% of employers believe that creative thinking is the number one skill they look for in an employee, so work on improving this aspect of your personality. Find out what your employer values ​​most on paper, then show them that side of your personality.

Make friends with AI

Artificial intelligence, which is one of the reasons for layoffs in the technology sector, is an area that needs further investigation. direct your skills to use tools that businesses will rely on to automate their processes and save time on the payroll front.

The return to face-to-face

Finally, keep in mind that telecommuting is now seen as a benefit for employees rather than an advantage for employers. By showing up to the office more often, you'll benefit from a visibility superpower when all your colleagues are at home working remotely behind Zoom screens.

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