There’s still a surprising number of open jobs
Tech layoffs in January may have signaled the start of a tech jobs recession. The number of job cuts in tech was more than the rest of the economy combined, and it signals that there is a real problem on the horizon. With more than 100,000 jobs lost in one month, companies are realizing that they need to cut costs quickly if they want to stay afloat. In some cases, this means laying off workers who are unable to keep up with advances in technology. If tech companies can’t keep up with the rapid pace of change and innovation, then their products will stop being desirable and customers will desert them. Unfortunately for those affected by these layoffs, there is no guarantee that their position will be regained anytime soon.
In the early 2000s people were optimistic about the economy and stock prices were going through the roof. In 2008 people were pessimistic about the economy and stock prices had crashed. What do these events tell us about how stocks work?
Essentially, stocks are a tool that companies use to try and raise money from investors. Sometimes stocks will go up because the company is doing well and its profits are increasing, or it might go up because the market is predicting that there is going to be a rise in profits in future. However, sometimes stock prices will fall even if there is no change at all happening with the company’s performance – this can happen when investors become scared of whether or not they’re going to make any money out of owning shares in a company, or when they believe that there’s likely to be a more serious economic downturn
The recent round of layoffs at HX Services may not seem all that bad on the surface, but a closer look at the jobs data suggests that the company may have made a mistake in cutting its workforce. The company has announced that it is reducing its workforce by 8% in an effort to reduce operating costs and increase profits, but although it is true that during the height of the pandemic payrolls inflated due to increased demand for employees, now that the pandemic has passed many of those positions are no longer needed. In fact, over half (53%) of HX Services’ total employee headcount is vacant or filled by temporary workers. This suggests that rather than reducing costs through layoffs and reduced staffing levels, HX Services may have actually wasted money by hiringtoo many people before the pandemic began and then letting those positions go once demand had subsided.
It’s possible that the increase in demand for these employees is simply due to the current economy, as businesses turn to digital tools and resources to boost their performance. However, it seems that even during this downturn there are still plenty of businesses who are eager to hire top-tier tech talent. So while these job cuts might seem like they’re here to stay, it’s likely that they’ll have a limited impact on the overall market for these professionals in the near future.
Many people who have been let go from big tech companies may just not be interested in working for other tech companies. Some of these people may instead decide to find work elsewhere in the industry, such as at a small business or startup. While it is uncertain how many of these people will actually take this route
