Layoffs 2022 - is there a silver lining?

These recent layoffs have led to shattered dreams and faith in the tech giants being questioned. Most companies that laid off employees are powerful, and one would always assume their job was 'secure.' But can one have job security anywhere after this?

Source: Youth Commonwealth

The job scenario presently is tragic, and many people are nervous about what to expect. We hear stories of people who joined companies two days ago, relocated to a new country, and then lost their job. Or the story of a mother on maternity leave who woke up to feed her daughter at night and read the news of being laid off. Some companies have laid off 300 employees, others 11000, and we continue to hear more news daily. Tons of emails sent to employees have gone viral, and it is interesting how leaders have chosen to communicate this disheartening news.

All the reasons for layoffs are different. Some companies were bloated as they hired more than needed. Some had teams working on things that didn’t help the business outcomes. Some companies were innovating new products, but such tough times curb investments into innovation since it requires patience and money, with often uncertain results. Whatever the reason, few are because of poor planning, while others are inevitable.

This layoff led to shattered dreams and faith in the tech giants being questioned. Most companies that laid off employees are powerful, and one would always assume their job was 'secure.' But can one have job security anywhere after this?

Source: Crunchbase, Meta, Deccan Herald

However, amongst all the chaos and the disheartening news, it is essential to see how this could positively impact individuals and the economy. I am not saying we should look at the brighter side and be optimistic or look at the glass half full, but past trends show that tough times give birth to innovation and path-breaking successes. The people laid off from these companies are the brightest minds. They have extensive experience building scalable systems, have solved huge problems, have seen gaps in these big companies, and are the most innovative, thoughtful, and critical thinkers. So, now they can take these learnings and build their startups. General Motors, Disney, HP, Airbnb, Slack, WhatsApp, and Hyatt are successful companies born out of the recession and have flourished ever since. News also shows that many laid-off tech workers choose to control their destinies by launching their companies.

While there are massive layoffs, some companies are hiring, and it will probably be easy for these employees to find something they are looking for. Live dashboards like https://layoffs.fyi/ have been created to share employee details, and now with global hiring and remote work, the opportunities could still be limitless. The Wall Street Journal concluded that laid-off tech workers can quickly find new jobs, pointing to a surprisingly strong U.S. job market. As of November 11th, there are 17034 job openings in the U.S. alone. Yes, the competition may be more challenging, but who would not want someone who previously worked with tech giants? It could be a win-win for many growing organizations.

This recession could be prolonged. It could be the biggest layoff in the tech industry. Lives will continue to be impacted. But what comes out of it will be interesting to see. The lesson for startups and growing companies is to have a good runway for every hire rather than believing that funding will always be there. Like the weather has been unpredictable because of global warming, similarly, with macro situations such as the pandemic, fed rates increasing, and public markets being impacted, funding has also been unpredictable. So, it is essential to be vigilant of all business decisions.

I am now looking forward to all the successful companies that could result from this, and I am hopeful of the endless possibilities. Until then, the hope is that all those laid off have the courage to pull themselves through this and face the challenge thrown their way with resilience. Times are tough, but we will become stronger; it is now the time to pause, reflect and rebuild.