After a series of brutal, high-profile layoffs in 2022 and 2023, job cuts are making an unwelcome return to the tech sector. Although rounds of layoffs have not been as numerous and rapid 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.
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One of the reasons often given is persistent market conditions, which means companies are simply not able to achieve their goals. The shift from a post-Covid growth mindset to one of efficiency – synonymous with downsizing – is, according to companies, at the origin of most downsizing measures.
On the other hand, there is also speculation that tech companies are not simply correcting pandemic-era overemployment in a market driven by high fuel costs, the impact of wars, inflation and high interest rates.
On the contrary, some companies are suspected of subtly shedding humans 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 tech's biggest players lost employees earlier this year, the cuts were smaller and more targeted, rather than aimed at reducing payroll. Making room for AI seems to be the underlying logic.
This is why AI-related functions promise to be more robust, at least in the short and medium term. Conversely, functions that an algorithm can easily perform are being eliminated. Data analysts, non-specialist software developers, and generic IT support: take note.
In Europe, labor laws are generally much more favorable to employees, which partly explains why layoffs in the United States tend to be more brutal, affect more people, and occur more often than in Europe. , even within American companies.
These laws are particularly strict in France where, despite their best efforts, Google and Amazon have struggled to reduce their workforce.
In the European Union, however, layoffs by US tech companies have become more common: recently, Twitter, Stripe, PayPal, IBM, Hubspot and Yahoo all cut jobs in France (as well as in Germany, Spain, Italy, Portugal, Sweden and Ireland).
Paris, of course, is the epicenter of layoffs in French tech; Cinpress, Payfit (which also closed its Germany HQ), Jellysmack and ManoMano all suffered triple-digit layoffs last year. In 2024, payments processing company Worldline has sought to lay off around 1,400 people, while bank Société Générale has considered 900 job cuts at its headquarters.
If you work in tech, it's an open question whether you'll ever be able to feel comfortable. Tech companies tend to hire in droves and in waves—chances are, if you're thrown overboard, you'll catch the next wave soon after. But there are tangible things to consider.
Increase your 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 think creative thinking is the number one skill they look for in an employee, so work on honing 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
AI, which is one of the reasons for layoffs in the tech sector, is an area that needs further investigation; direct your skills toward using tools that businesses will rely on to automate their processes, and you'll save time on the salary front.
The return to face-to-face
Finally, keep in mind that remote work is now seen as a benefit to workers, not an advantage to employers. By showing up in the office more often, you'll benefit from a superpower of visibility at a time when all your colleagues are at home, working remotely behind Zoom screens.
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