US Insider’s Post

Hello everyone, I want to bring up the topic of uncontrolled hiring that occurred during the COVID times and what is happening now. By the second half of 2022, tech companies had initiated significant layoffs -- something that had followed an extended period of frenzied tech hiring and attention to employee experience. Standard explanations for the cuts were that companies hired too many during the pandemic and they were looking at the specter of a recession in the months ahead. It sounds a lot like the dot-com boom and bust of yore. Not all companies are impacted equally. It’s the ones that hired at an accelerated rate during the boom that seem to be hitting the brakes right now. When much of human activity moved online during the height of the pandemic, tech companies were thriving. Call it the COVID tech bubble. Now we’ve hit the COVID tech bust. The U.S. economy is humming and there are hundreds of thousands of jobs being added every month. In a stunning burst of hiring to start the year, the nation added 353,000 jobs in January, shrugging off the highest interest rates in two decades that have been put in place by the U.S. Federal Reserve in part to cool off hiring and spending. The unemployment rate is hovering at 3.7%, just above a half-century low. Stéphanie Vernik Barker, President of Mondo Staffing at Addison Group, said that during the pandemic, many companies hired too many employees. These recent layoffs, especially in the technology sector, are a correction of this situation. "From 2020 to 2022, everyone took advantage of access to talent, remote opportunities, and access to capital at lower interest rates, leading to a boom in hiring," she said. "Then you face the question: 'Did we invest too much?'" Vernik Barker said she hasn't had to lay off her 200 full-time employees yet, and she's doing everything she can to avoid it, including reassigning employees to other tasks if the return on investment in their current work decreases. You can find statistics on mass layoffs over the past years here: https://lnkd.in/gE2SaPnG How do you think the U.S. IT sector will emerge from this recession?

Check out the post below prepared by our CEO, Dmitry, addressing a pressing issue in the USA IT sector regarding uncontrolled hiring during the COVID period and its resulting consequences.

Despite Tech Layoffs, Competition for Talent Remains Fierce #despite #technology #industry #employee #layoffs #competition #talent #skills #SFIA #fierce #coaching #best #practices https://lnkd.in/d9spjmdy

The tech industry has seen a big shake-up with many layoffs in 2024. Big companies have cut thousands of jobs in the first half of the year. Over 60,000 workers lost their jobs at 254 tech firms, showing a move from the tech boom to tougher economic times. Big names like Tesla, Amazon, Google, TikTok, Snap, and Microsoft have all made big cuts. #Downsizingintech #Employmenttrends #July2024jobcuts #Techindustrylayoffs #Technologysectorimpact

Facing the wave of tech layoffs. Discover how shifts in the industry are opening new doors for tech professionals. Learn how to navigate the challenges and seize emerging opportunities! #TechLayoffs #CareerGrowth #MondoInsights https://lnkd.in/ekSZHWiR

Facing the wave of tech layoffs. Discover how shifts in the industry are opening new doors for tech professionals. Learn how to navigate the challenges and seize emerging opportunities. #TechLayoffs #CareerGrowth #MondoInsights https://lnkd.in/gKthBuEx

Facing the wave of tech layoffs. Discover how shifts in the industry are opening new doors for tech professionals. Learn how to navigate the challenges and seize emerging opportunities. #TechLayoffs #CareerGrowth #MondoInsights

The tech layoff boom isn't all doom and gloom. Explore how the current industry shifts are reshaping the future of work and what it means for tech professionals. Find out how to turn these challenges into opportunities in our latest post. #TechLayoffs #CareerGrowth #MondoInsights https://lnkd.in/eZFHsfua

"Stanford business professor Jeffrey Pfeffer has called the phenomenon of companies in one industry mimicking each others' employee terminations "copycat layoffs." As he explained it: "Tech industry layoffs are basically an instance of social contagion, in which companies imitate what others are doing." Layoffs, in other words, are contagious. Pfeffer, who is an expert on organizational behavior, says that when one major tech company downsizes staff, the board of a competing company may start to question why their executives are not doing the same." The same happened with the Great Migration, Quiet Quitting, etc., and other trends. Their stock increases when they do this, and the social contagion shapes the economy. It is our "Don't Look Up Moment" with the economy. #careers #layoffs

Facing the wave of tech layoffs. Discover how shifts in the industry are opening new doors for tech professionals. Learn how to navigate the challenges and seize emerging opportunities. #TechLayoffs #CareerGrowth #MondoInsights https://lnkd.in/eQvCQarc