A significant fraction of the tech industry’s laid-off workforce — 141,000 and counting — have found new opportunities outside the familiar terrain of technology.
According to LinkedIn (MSFT) data from 2023, over half of these tech workers have managed to secure employment in sectors distinct from their previous, tech-dominated roles. They’ve spread across a variety of industries, illustrating the adaptability of a certain skill set in the rapidly evolving job market.
This shift may be seen as a loss for the tech industry. But for other sectors, it’s a major gain, and demonstrates that technology is an integral part of every industry, not just those with “tech” in the name.
Big Tech Antitrust
Regulatory and public scrutiny of big tech companies has led to a general distrust of the industry. In turn, this has influenced the career trajectories of many tech professionals, making it harder than ever to “make it” in tech.
Major tech giants Microsoft, Amazon (AMZN), Meta Platforms (META), Alphabet (GOOGL), and Salesforce (CRM) have reportedly been responsible for 42% of tech layoffs from January 2022 to March 2023. This trend signifies a shifting landscape in which tech companies that previously represented desirable and stable employment are now widely viewed with apprehension.
Main Street’s Makeover
The impact of this shift in the tech workforce can be seen in the hiring practices of traditionally non-tech firms. Companies such as Disney (DIS), Deloitte, and Bank of America (BAC) are now on a hiring spree for software engineers, cybersecurity professionals, and data scientists.
However, insiders note it’s too early to sound the alarm for the tech industry, even if and when widespread layoffs give way to widespread hiring again. Remote work tends to be an attractive option for knowledge workers, and tech companies are better positioned to accommodate it than many other industries. Ultimately, workers may be willing to accept more flexibility for less pay.
Nevertheless, this shift is a testament to the increasing permeation of technology into every business sector. For these ‘displaced’ tech professionals, it presents a unique opportunity to carve out new careers in diverse fields. The more the world changes, the more the value of technology skills remains stable.
Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.