The Scary panorama of the IT Job Market

In the last months, the IT market captured the headlines in the business world. It is not a secret that most tech companies had a big growth throughout the pandemic, but now that all seems to be back to normality, customers behavior is changing too, and it represents a decreased demand for technological services. This situation is a fragment that adds to the scary worldwide inflation that has affected several companies’ finances, forcing them to take cost-cutting measures, which shamefully includes big layoffs. 

Andrew Challenger, senior vice president of Challenger, Gray & Christmas, said that Crypto and other Fintech companies have cut 1,619 jobs in May, compared to 440 in the period between January and April. On the other hand, Elon Musk, Tesla’s CEO, declared the company’s plans to cut 10% of jobs for salaried workers. 

On the same note, Netflix has reported the dismissal of 2% of its employees just in the months of May and June. If it’s true that most of this cut-off is happening in the US Workforce, which means thousands of IT talents fired. Sadly the panorama does not seem to be any brighter in the near future, because the same company announced that the similar plans may take place in the second semester of this year.

The same measures have been announced by other big companies, such as Twitter which laid off approximately 30% of its talent in July, according to TechCrunch. Even when the company refuses to give the exact number of talents affected, the big layoff is a fact.

According to the US financial news and data specialist Bloomberg, enterprises such as Google, Meta, and Microsoft have slowed down their hiring and began to announce some discharges. These are leader tech companies, and the same panorama is usually replicated in startups or medium size companies. Far from a doubt, talents are the most affected by these emergent strategies.

At Lucioles, we are focusing our efforts to help companies develop better recruitment strategies, and support talents on their search for the perfect role.

Subscribe to our Newsletter

Be part of this story and subscribe to the newsletter for news and updates.