The significant job cuts in technology last year and in early 2023 raised serious concerns within the industry. And it’s easy to understand why. In 2023 alone, more than 170,967 workers in US-based tech companies were laid off. With tech giants like Amazon, Meta, and Google massively downsizing their workforce, it seemed that the situation would not stabilize for a long time.
Nevertheless, recent months have brought positive changes to the tech industry. According to data collected by TechCrunch, the number of job reductions has decreased by more than 90% since the peak in January of this year.
To provide more accurate figures, according to data from Layoffs.fyi, the number of layoffs has been decreasing since March. In March, there were 37,823 layoffs, and from June to August, there were approximately 10,000 layoffs per month. Surprisingly, in September, the number decreased to just over 3,550.
Source: Layoffs.fyi
Furthermore, according to Insider, Bernstein analysts, who have been monitoring industry layoffs for about a year, stated in an email to clients that the “Tech Job Recession is Over.” They also posed the question, “Tech layoffs have slowed to a trickle. When will the hirings start to reaccelerate?”
With that said, it is evident that the impact of the layoffs seems to be more evenly spread out compared to earlier this year. Although some companies are still reducing their tech workforce, they are now doing so with greater caution and strategic planning. This shows a recognition that tech talent is a vital asset for business growth.
What’s more, many companies are now returning to hiring software developers for previously eliminated positions as well as new ones.
Organizations such as OpenAI, which listed more than 50 open positions on its website, and others like Netflix, which are making significant investments in artificial intelligence, highlight the increasing market demand for hiring top AI software engineers.
So, the million-dollar question: Is this the end of layoffs in the tech industry? While we can’t say for sure yet, it is safe to say that we are facing a more pleasant scenario. The tech talent recession is slowly becoming a thing of the past, indicating better prospects for the industry.