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.

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