Tech layoffs signal end of lifelong careers, says expert
WASHINGTON, D.C., UNITED STATES — Tech giants are no longer seen as “employers for life” as thousands more workers lost their jobs in early 2024, continuing the wave of tech layoffs that began in 2022.
“I think big tech firms are still employers of choice, but no longer seen as the employer for life,” said Christopher Kayes, a professor at The George Washington University School of Business.
“I think it’s a trend that we’ll see for a couple of years now.”
According to layoff tracking site Layoffs.fyi, over 23,000 jobs have been cut so far this year. Major tech firms like Google, Amazon, and Duolingo have trimmed hundreds of workers across various divisions in an effort to cut costs and boost efficiency.
Kayes explains that these companies grew extremely quickly during the last decade and are now struggling to redefine business models that are no longer sustainable.
The easy money from investments and loans that fueled rapid expansions is drying up. Tech giants are searching for ways to squeeze more revenue from existing customers rather than relying on continuous growth, according to Kayes.
While interest in tech careers remains strong, the volatile job market has some recent graduates eyeing other opportunities as they job-hop or get less interested due to mass layoffs at big tech firms.
But the mass layoffs also present a chance for increasing diversity across other sectors like healthcare and government that need tech talent.
“I think you’re seeing a more, almost democratization of the tech workforce, across a broader set of industries and types of companies,” Kayes says.
Ultimately, the future of work will depend on workers embracing lifelong learning as technologies and businesses continue evolving.
