In 2023, the Layoff wave recorded hundreds of thousands of employees in technology companies being laid off. This wave will continue in 2024 and shows no signs of rebuilding. Let's read more about the future of the technology industry after the layoff wave through the following article:

The Future of the Technology Industry After the Layoff Wave

1. The current situation of technology industry

In 2023, more than 258,000 technology workers will be laid off worldwide, an increase of more than 50% compared to last year and the trend continues to escalate.

This is a high-class picture for the technology industry, which is considered a "paradise" of high-level work and a dynamic working environment.

This wave of layoffs raises many questions about the future of the technology industry:

• Is this just a temporary phenomenon or a sign of a major change to be found in the profession?

• Where will the technology industry go after this difficult period?

• What will laid-off workers have to do to adapt to the new situation?

Answers to questions related to the technology industry's layoff wave remain blank. However, we must look at the facts and prepare for possible future changes.

2. Analyzing the wave of layoffs in the technology industry

2.1. Reason:

Inflation and economic recession: The global economy is currently facing the risk of recession due to increasing inflation. This forces technology businesses to cut costs to maintain profits. And the most optimal way that most technology companies choose today is to cut personnel and optimize operating costs. This is the main cause leading to the wave of layoffs globally. 

Reasons lead to the wave of layoffs in the technology industry

Transforming business strategies: Many technology businesses are partially or completely transforming their business strategies to match market trends, focusing on new areas such as artificial intelligence, metaverse, etc. This leads to staff cuts in old areas.

Increased competition: The technology industry is increasingly competitive, forcing businesses to increase operational efficiency and cut costs to compete and survive the current stressful economic situation.

Tech bubble: Some analysts attribute the current wave of layoffs to the tech bubble, which is the result of overinflating the value of tech companies, causing people to think “ technology dream” is easy.

2.2. Degree of impact on Vietnam's technology job market:

Reduced number of job openings: If a company implements a layoff, the number of job openings within that company will decrease, which can affect candidates and job seekers in the industry. turmeric.

Increased competition in the industry: employees affected by the layoff wave may seek jobs at other companies, leading to increased competition in the industry and reduced job opportunities for candidates.

Degree of impact on Vietnam's technology job market

Reduce candidate interest: If companies frequently do layoffs, candidates may not want to work at those companies for fear of being fired, which can reduce candidate interest. candidates to these companies and reduces the number of quality candidates.

However, the layoff wave can also help companies focus on key areas and increase operational efficiency, helping to create new recruitment opportunities and attract candidates with the right skills. the company's current needs. Thus, layoff can affect the IT personnel recruitment situation of businesses, but the impact depends on many factors and does not always cause a negative impact.

3. Which solution is effective for the industry?

3.1. For Businesses:

Businesses should restructure their organizations to focus on more potential areas, converting to new business models such as subscription-based, sharing economics. Cutting unnecessary costs is one of the solutions that can best help businesses optimize. Invest in new technology, especially AI, to keep up with market trends.

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3.2. For workers:

For workers working in the Technology industry, special attention must be paid to the development of AI and big data. In particular, you must prepare mentally and knowledge to be able to face the extremely fierce job competition in the coming time.

The layoff wave is a challenge but also an opportunity for innovation. The future of the technology industry depends on the adaptability and innovation of businesses and workers in the context of AI development. Visit HR1Tech to not miss out on attractive job positions!