Find the right solution for your business.
Explore SolutionsTo get content delivered to your inbox, subscribe to our newsletter here. It’s free!
To the delight of employers and employees alike, the U.S. job market started strong in 2024. More than 350,000 new jobs were added in January alone. For the third straight month, the unemployment rate is holding steady at a low of 3.7%.
The Bureau of Labor and Statistics noted that “job gains occurred in professional and business services, health care, retail trade and social assistance.” Most industries are enjoying the boon in hiring and profits. One industry that isn’t, however, is the tech industry.
Layoffs in Tech
According to Layoffs.fyi, more than 40,000 tech workers have lost their jobs since the beginning of the new year. And the losses don’t show any sign of letting up. Experts say financial belt-tightening after hiring too many people in the pandemic is a part of the problem.
“Certain tech companies hired more highly skilled workers than they needed. In some cases this was a defensive measure to keep these workers from contributing to competitors,” explains Scott Lieberman, Founder of Touchdown Money. “After a difficult 2022, Meta’s CEO Mark Zuckerberg stated that 2023 would be Meta’s ‘year of efficiency.’ This meant cutting costs. The biggest cost for most tech companies is headcount.
Following the announcement, Lieberman says other tech companies jumped on the bandwagon. “It’s been a game of follow the leader since then,” he notes.
With several major tech companies following suit during 2023 and into 2024, the high demand for jobs and the limited supply of positions will be a challenge for recruiters.
With a focus on layoffs in the tech sector, does it change the approach to recruiting? We’ll discuss strategies you can use to fill positions in those industries efficiently, without getting overwhelmed by applicants, and important things to keep in mind in the process.
Talent Acquisition Strategies During Layoffs
Business layoffs can be caused by any number of factors, even in a strong job market. Mergers, acquisitions, company relocation, outsourcing jobs and—of course—reduced profit margins can all play a part. With tech, industry leaders speculate that AI also had a hand in the large number of layoffs.
Since 2023, Amazon, Meta, Google and Microsoft all laid off employees in significant numbers. By the end of this year, Toast, a food delivery app, says it will lay off 10% of its workforce, which amounts to more than 500 employees. Networking hardware and software company Cisco plans to reduce its staff by 5%, equaling more than 4,000 employees.
Despite job losses, there are still positions to fill. The tricky part is being able to find the cream of the crop and not get inundated with people looking to replace the jobs they lost in the process.
For some recruiters, it’s less about focusing on the layoffs, and more about being strategic.
“The mechanics of recruiting are the same, whether you’re in a time of plenty or a time of famine. That said, if a recruiter of a temporarily downsizing company has ten approved requisitions for core positions canceled—if they’re smart—they won’t coldly disengage from candidates they were about to extend offers to. Rather, they’ll find a way to keep that relationship warm,” explains Bill Catlette, Partner, Contented Cow Partners.
On average, it takes a person at least three months to find a new job after losing one. A talent acquisition specialist may be able to help reduce the time between jobs and create a situation that’s beneficial for both sides.
“[A] good recruiter, who likely knows the company’s staffing needs better than anyone, will scan the list of departing souls to see if any of them would make good candidates for other jobs that remain open. In a similar vein, in the interest of maintaining relationships, if a particularly skilled [or] valuable employee is being surplused, a good recruiter might reach out and introduce them to a fellow recruiter at another firm that might have need of their services,” Catlette states.
Though the basic work won’t change, there are strategies that can be more impactful when recruiting in the midst of heavy industry layoffs.
Be flexible, and willing to recruit skills that are in demand
If tech companies aren’t hiring, you need to diversify and be able to find employees with skills that other industries need. You may need to familiarize yourself with niche job posting websites and learn what it takes to recruit for those industries.
Stay informed about what’s going on in the job market
Be aware of what industries and companies are anticipating layoffs. That key manager who would be a great asset to your company may soon be looking for work. Knowing he could soon be available may help you be able to snatch him up before the competition does.
“My fervent advice to leaders of growing companies is, and always has been, to keep your lure for talent in the water, just like you do with sales. Sales professionals don’t wait until the cash register runs empty to go round up some new business. Similarly, good recruiters are always looking for talent in their core disciplines,” says Catlette.
Be intentional with job postings
Use specific wording, identify key duties and note which skills are necessary for the position. This should cut down on unqualified job seekers applying for the job. To avoid extra work, be clear about what you need, given the high number of job seekers.
Maintain your contacts
The executive laid off today might become the perfect fit you are searching for tomorrow. Similarly, a company you’ve recruited for may not have a lot of work for you now, but you want to be ready when that changes.
“A recruiter’s two biggest tools are their reputation and their contact management software. Don’t mess up the former by taking cheap shots at businesses that are amidst a hard time,” Catlette advises.
Things to Keep in Mind
Although recruiting employees is your main concern, you can’t forget about yourself in the process. Make sure you look out for your job security. Be mindful of the fact that employee layoffs can lead to less work for you, too. If you are recruiting for tech and already witnessing the layoffs occurring in the industry, ensure your resume is up-to-date and prepared for the job market.
You may want to be proactive and submit your resume to talent acquisition job boards.
Take the time to reeducate hiring managers. Make sure you are on the same page when it comes to the employee needs and filling the positions. The last thing you want is to spend a lot of time fielding candidates who need jobs, only to hire someone who’s not a good fit.
Finally, make sure you continue to thoroughly vet job candidates. It may be thrilling to have tons of top talent applying for positions. But do your homework to find out why this person left the company.
“A recruiter should do a thorough screening to understand why somebody was laid off,” states Kate Walker, SHRM-SCP, in an interview with SHRM. “Was poor performance any part of the equation? If not, it’s exciting that you may have a viable candidate who is ready to start a new job soon.”
For more tools to help your recruitment marketing efforts, visit our marketplace now. Happy hiring!
