How Tech Layoffs Impact Your Job Search

You flip on the news and see a troubling headline: more tech layoffs. As of July 2022, at least 30,000 tech workers lost their jobs. And it wasn’t just small companies and start-ups. Major tech companies like Coinbase, Netflix, and Peloton cut staff this year.

Experts argue downsizing was bound to happen after a decade of rapid growth. The bubble finally burst this spring, with the tech crash leading to a dramatic drop in technology stocks. But companies are also trimming their financial policies to slow inflation and prepare for a possible recession.

The good news? The tech job market is still hot for job seekers — even for those who have been laid off. Many companies are hiring, which means if you’re looking, you can secure a new job in tech quickly.

Yet the process through which companies recruit new employees will change after the tech crash. To land your dream job, you’ll need to adjust how you prepare for the market. Below you’ll learn four ways the job search process may be different, as well as tips for success.

The good news is that the 2022 job market remains favorable to job-seekers. While recent layoffs may be high profile, far more workers are also voluntarily quitting their jobs as the price of labor increases. In other words, job-seekers have more bargaining power than in a very long time–This could be the perfect time to land an even better job. Follow these 6 steps to quickly bounce back after getting laid off and land another job.

1. Your network will be key to getting interviews

While demand for talent is still high after the tech crash, many companies announced a slow down in hiring. Since there are fewer job openings, you’ll need to be proactive if you want to secure an interview with a promising company.

Who you know can make all the difference. Research by Mark Granovetter found that people who contact their network are more likely to land good jobs than people who do not. Their connections let them know about job opportunities and even recommend them for an interview.

Yet some contacts are more useful than others. Granovetter said it’s more effective to ask your weak ties for recommendations than your close ties. You’ll discover new opportunities from your weak ties because they’re connected to different social networks than you. And weak ties feel more comfortable recommending an acquaintance for an interview than a close friend or family member.

To leverage your network, make a list of everyone you know including former colleagues, classmates, or people from networking events. Keep track of your conversations in a spreadsheet so you can follow up with each person. And don’t forget to continue to network and expand your connections.

2. The interview process will be rigorous

With fewer spots to fill after the tech layoffs, recruiters will be more selective in who they interview and hire. This means the interview process may become more challenging. For example, Meta’s interview process includes four rounds of interviews, each one lasting 45 minutes.

There’s no getting around it: Interviewing is stressful. What if you answer a question wrong? Or stumble over your words? You may worry you’ll embarrass yourself because you don’t know how to respond to a technical question. You don’t want to mess up an opportunity to get a great job, especially if we’re on the brink of a recession.

So what can you do to boost your confidence and strengthen your application? Ask a trusted mentor to review your resume to make sure it highlights your skills and experiences. Brush up on skills the company may test you on and set up a mock interview with a friend to practice your responses to questions. And don’t forget to ask for feedback to improve your answers.

3. You’ll have more bargaining power

Most tech companies (including those involved in tech layoffs) are still hiring. And right now, there are more job openings than job seekers due to labor shortages. This means recruiters are struggling to fill jobs with the talent they need.

That’s good news for you. You’ll have the leverage to bargain for higher wages and better benefits, especially if you’re considering offers from several companies.

So what should you do when you receive a job offer? Thank the company representative for the opportunity and ask for some time to give them your answer. Use this time to follow up with other companies you interviewed with to see if they’re still interested in you. If you can get multiple offers, you’ll be in a better position to negotiate.

4. Salary negotiation will be more important than ever

While the market favors job seekers, negotiations will be essential to getting a good offer after the tech layoffs. The tech crash encouraged companies to trim their finances, which means smaller salaries and fewer benefits. You can still expect a healthy paycheck, but you’ll need to negotiate skillfully to get the pay and benefits you deserve.

Before you discuss the offer with the employer, sit down and list the reasons you should get a specific pay rate or perk. Then get feedback on this list from a trusted mentor who knows the industry. Having this final list in hand will boost your confidence and allow you to negotiate offers with recruiters rather than accept the first one.

While the industry is changing after the tech layoffs, you can still navigate a job search successfully with the information above. If you’d like personalized support that guarantees you land a job, join the career mentorship program at Pathrise.

When you become a Pathrise fellow, you’ll work one on one with an experienced mentor. They’ll help you through each stage of the job search, from writing your resume to negotiating a higher salary. On average, our fellows find a job within 3-5 months. And since we offer a job guarantee, you don’t pay a dime until you secure a job.

Apply today and land your dream job faster.

 

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