Tech

How bad is Big Tech’s hiring freeze?

The end of the tech boom has triggered a spate of job cuts as companies quickly tighten their belts. Recruitment at Meta and Uber has slowed, job offers from Twitter and Coinbase have been withdrawn, and deep layoffs have gripped parts of the sector.

But while household tech names have garnered attention withdraw setting After a lengthy period of staffing, some analysts, recruiters, and job seekers are finding some reasons to remain calm — for now.

US software engineer job postings are up 120 percent from pre-coronavirus levels in early 2020, according to data from recruitment site Indeed.com. ZipRecruiter, another job site, said the number of vacancies in the technology sector is high, with about 1.6 jobs for every unemployed person in the industry.

This is the Technology Companies that are hiring are still pulling out the registers, offering contract rewards and the promise of full remote work. About 36 percent of tech job postings offered the opportunity to work remotely, according to ZipRecruiter, compared to just 12 percent in 2019.

“There are far more jobs out there than people chasing those jobs,” said Sinem Buber, lead economist at ZipRecruiter. “Companies are doing what they can. They meet the demand from job seekers to fill those positions.”

Technology companies that have benefited from increased demand for their products and services driven by the pandemic have been among the quickest to downsize. Robinhood, Peloton, Netflix and Cameo have all announced layoffs. Meta, Uber, Snap, Instacart and Lyft said they would slow down recruitment.

“There’s still so much uncertainty,” said PitchBook analyst Kyle Stanford. “Will there be a total economic collapse? Or will there be just a little bit of an outlier in the longer term timeline?”

Other parts of the tech industry haven’t had to make such deep cuts because the hiring is solid. Job seekers with cyber security expertise or in development and operations are still in particularly high demand, recruiters said.

“What I’ve seen is companies falling into two buckets,” said a 27-year-old worker whose offer to become a project manager at Twitter was withdrawn, only to prove in high demand elsewhere. “Either they’re still recruiting as if nothing was happening, or they’re recruiting selectively and have downsized a bit.”

After posting a message on LinkedIn about the lost offer that had been in place since October as part of a college graduate recruitment program, he was inundated with inquiries. He said he’s turned down dozens of “serious” offers and is in the process of interviewing about 10 standout companies.

Those still hiring said The employees had the upper hand in a historically tight job market. Software engineering management platform LaunchDarkly, an outlying Oakland-based company, said the layoffs at big corporations and doomsday comments about opportunities in the tech sector haven’t changed what it needs to do to attract top talent.

“This is all so new that we haven’t seen the impact yet,” said Dana Ray, LaunchDarkly’s chief people officer. “Will salaries go down? Don’t we have to use sign-up bonuses? Don’t we have to issue such large equity packages? I don’t know that we already know. It will be interesting to see in three months, in six months.”

Column chart of laid-off technicians since the pandemic began, trending upwards

Layoffs.fyi, a website tracking job cuts, said losses in the tech sector have not yet matched the wipeout in the early days of the Covid-19 pandemic.

But with nearly 17,000 workers laid off in May, according to his tally based on media reports and worker submissions, some business leaders seemed the “super bad feeling‘ on the economy, voiced by Tesla CEO Elon Musk this month.

As venture capital groups warn that checks for the next year or more could be hard to come by, privately held companies are hiring with sustainability in mind. Y Combinator, the startup incubator best known for promoting Airbnb in its early stages, warned the founders in a letter that the “safe step is to plan for the worst.”

The tech sector’s “grow at all costs” mantra seemingly morphed overnight into something much more sensible, suggests Pitchbook’s Stanford.

“Realistic growth, sustainable growth is probably what companies will be looking for,” he said. “Definitely feel like when a company goes public, they can flip a switch or make a few changes and then really go for the profits.”

How bad is Big Tech’s hiring freeze? Source link How bad is Big Tech’s hiring freeze?

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