What’s Going on in the Tech Industry in 2024?
The tech industry in 2024 is a mixed bag of cautious optimism and ongoing challenges. Here’s a breakdown of some key trends:
Recovery and Investment:
In 2024, we’re seeing signs of a post-pandemic scramble. to re-balance the panic hiring in the last few years. I’m sure this is true for many industries, but when you focus on tech specifically you’ll find that most major corporations like Meta, Microsoft, Google, Amazon and many more over-hired during this period of time. Now, in 2024 we are seeing the repercussions of that. According to Layoffs.fyi, 93 tech companies laid off 24,584 employees in 2024, and we are still in the first quarter.
After a tough 2023 with slow investment, there are signs of a rebound in 2024. Pent-up demand and strategic shifts by companies are fueling this. As one of the many who have been laid off in 2024, I have been spending a lot of time on LinkedIn. Spending too much time on LinkedIn will make a few things clear. First, when you see recruiters being laid off in droves, that means the major players aren’t focusing on acquiring new talent any time soon. However, I’m seeing all of those laid-off recruiters land new recruiting positions. That’s a great sign!
Another thing I’ve noticed on LinkedIn is that those of us who are now scrambling for their next position are taking solace in the sheer number of fellow unemployed colleagues. The last significant trend I’ve noticed is that these same companies who just laid off thousands are now only dipping their toes back into hiring. Here’s what I mean: many of those same positions from before are now contract to hire. It’s way of hedging their bets in the current job market. Instead of investing $10,000 (estimated on-boarding cost of a W2 hire) in a new employee they are now offering a 3-6 month contract without benefits to see if you are a good fit. Then, if everything is still good when the contract is up, you are offered a permanent payroll position. It seems to be a middle-ground in a stand-off between tech workers and tech companies.
Focus on AI:
Artificial intelligence (AI) remains a major driver of innovation. Expect to see AI integrated into various aspects of businesses, from automation and personalization to advanced analytics. Tech companies are shifting their focus and resources towards AI investment. A big investment like a shift to Artificial Intelligence is causing a massive shift in company budgets. A UK telecommunications firm British Telecom, plans to replace a fifth of its 55,000 job cuts with AI. That’s concerning.
Workforce Impact:
While the industry is recovering, there have been significant layoffs in 2023 and 2024. Companies are focusing on efficiency with smaller teams taking on more work. There has also been a big shift to outsource the lesser skilled positions like call centers, and other administrative functions. However I fear there will also be a shift of the skilled positions moving overseas as well as our American economy struggles to keep up with inflation.
I experienced the latter first-hand when I was laid off in January. The remote-first company I worked for has slowly been letting go of entire American teams only to replace them with a more economical option in the Philippines. I project that my former employer will soon be 90/10 with the 10% being in the United States. In my opinion, a company that claims to be an American company should be required to have a majority of its full-time employees here in the states. It can be 51%/49% but nonetheless it should enforced. Otherwise, they are seen as a foreign-based company and should not receive any tax breaks of any sort of the United States government. This is my opinion though, and only my opinion. I have zero problems with foreign tech colleagues, they are talented and have my utmost respect. My problem is with American companies that are working the system in its current broken state. Rant over. If you don’t agree, I respect your opinion as well. I’m always open to hearing all sides.
Other Areas to Watch:
Growth in areas like wearable tech, smart home devices, and upgrades to pandemic-era electronics purchases. Continued discussions around regulations and ethical considerations of emerging technologies. The times, they are a-chang’n.
In Summary:
Overall, the tech industry is adapting to a new normal. While there are challenges, there’s also exciting progress in AI and potential for growth in specific sectors. As a tech industry worker you must adapt and grow or refuse to adapt and watch your career tank. I choose to adapt and grow, and my current ongoing upskilling in Machine Learning/deep learning/AI is the result of that. If you want to also adapt and change, but don’t know where to start keep watching this website for a soon coming article on how to upskill without spending much (if any) money.