How to Navigate Big Tech Company Layoffs in 2023 for Employees and Employers

After having seen monumental growth for more than a decade, why are tech companies suddenly laying off employees? For example, Meta’s November 2022 job cuts were the first workforce reduction in company history, with roughly 11,000 employees being let go. Meta also announced it would be reducing office space, limiting discretionary spending, and instituting a hiring freeze throughout 2023. In 2023, Meta took this even a step further, announcing its “Year of Efficiency” with a focus on becoming a more flexible and nimble organization.

Tech layoffs in 2023 are mostly a result of severe over hiring during the pandemic when the technology sector saw significant growth. Many companies, such as HP, saw sales and revenue bloom during COVID-19, leading them to invest heavily in headcount to keep up with demand. When demand started to slow down amidst economic uncertainty and market volatility, those same tech companies had to let go of their employee surplus.

While it might feel like an uncertain, scary time, big tech company layoffs provide employees with a unique window of opportunity. From startups thriving off of new talent to employer education reimbursements to uplevel skills, there are several ways to successfully navigate layoffs… and even come out on top.

1. Find startups and smaller tech companies that are thriving off of new talent

While being impacted by tech company layoffs can feel disappointing and alarming, the tech job market is still hot. For example, 80% of affected tech workers found a new role within three months. Also, when tech giants let go of employees, these newly on-the-job-market employees are valuable talent for growing startup brands. Whereas their role might have been limited at a tech giant, tech workers can get in on the ground floor of pre-seed or Series A startups and make a significant impact.

2. Uplevel skill sets

For employees happy in their current role and not facing the fear of tech company layoffs, this could be an excellent time to uplevel skills, get a new certification, or take an online course. If tech workers are content to stay in their current roles, they should take advantage of education reimbursement opportunities from their current employer. If layoffs happen or they simply decide to take a new job, they have the opportunity for higher pay or a more significant title — thanks to their continuous learning.

3. Take a layoff as an opportunity to find a higher-paying role

If candidates are victims of tech company layoffs, it’s not all doom and gloom. Candidates newly on the job market should take this as an opportunity to find a higher-paying role. The average salary growth for changing roles is 14.8%, while staying in the current job will only see a salary increase of 5.8%. 49% of job switchers receive a pay increase, so even if laid off, candidates should negotiate for a higher salary.

4. Be aware of recruitment scams

Fraudulent job posts have increased by roughly 295%, with some bad actors looking to take advantage of the hundreds of thousands of workers searching for new roles. If a job seems too good to be true, it probably is. Americans lost about $68 million to job scams from fake recruiters and fake jobs on job boards and social media.

5. Use a high-quality tech recruiter

Tech recruiters can be a candidate’s secret weapon when it comes to landing their dream job. Cultivating a solid relationship with a skilled tech recruiter can help with interview coaching and resume tweaks, successfully prepping candidates before skills tests or on-site interviews. Working with a tech recruiter can make all the difference in landing a higher-paying role that offers better benefits and work-life balance after tech company layoffs.

Overall, in times of recession and downward markets, tech companies have to cut costs. When 15 to 30% of business revenue is spent on payroll, it’s a necessary victim of cost-cutting measures. However, the tech industry still ranks well in terms of career outlooks, projections, salaries, and positive work-life balance.

At Advantis Global, we work with many of the top technology companies to staff talent and help highly skilled tech workers find their new dream jobs. For companies needing staffing services or candidates needing interview coaching, our expert team is ready to help. Advantis Global has access to exclusive contracts, so we’re able to help laid-off tech workers navigate the next phase of their careers. Look through our open jobs today and apply to a job to get in contact with one of our recruiters.