As mass layoffs shake up the tech sector, some steps to economically and emotionally weather such trying times

According to tech job tracker layoffs.fyi, there have been more than 200,000 tech jobs lost since the start of last year, with Facebook parent company Meta, Amazon, Microsoft, and Google together eliminating at least 51,000 jobs in January itself. The situation is expected to get worse.

Reasons for mass layoffs

The major reasons for the current layoffs by tech giants are being attributed to overzealous hiring during the COVID-19 pandemic, the Russia-Ukraine war, and the impending recession. During COVID-19, many IT companies saw immense growth and went on a hiring spree only to find things changed after the pandemic lockdowns were lifted and things went back offline again. Further, the Russia-Ukraine war has caused disruption in supply chains and led to an increase in interest rates and fuel costs, coupled with inflation — all of which have contributed to companies preparing themselves for a changed economic reality and cost-cutting.

Facebook parent company Meta, Amazon, Microsoft and Google together have eliminated at least 51,000 jobs in January itself. The situation is expected to get worse. (Pic source: Unsplash)

What about Indian IT professionals in the USA?

Arjita said that a lot of freshers are under immense stress. “A lot of immigrant students come to the US on hefty student loans assuming they would receive generous packages here (as is generally the norm) and would be able to repay the loan in a couple of years. But when such a situation arises, it becomes very tricky, scary, and unfortunate,” she added.

“A lot of my friends who just graduated from Ivy League colleges like Dartmouth and Stanford and are not getting jobs,” she continued.

Are mass layoffs necessary?

“Layoffs happen when an employee cannot afford to keep the labour, i.e labour cost is more than the profit it is earning — this is the economic reasoning behind it,” explained Benhur Ruqsana, a doctoral research fellow specialising in Economics at the Jawahar Lal Nehru University, adding that mass layoffs by tech giants are because recession directly hits big companies first. “Recession is mainly due to a decrease in demand for consumer goods, which are produced by big industries. This effect further trickles down to the informal sector, but initially impacts large scale industries”.

However, Akash Saharan, a Doctoral Research Fellow in Human Resources Management at Jindal Global Business School said that mass layoffs aren’t necessary. “There are other options available with companies, such as cuts in salaries, postponing appraisals, or reducing the work hours of employees. Even if there is a shift in the industry, companies should invest in training employees, which is always cheaper than hiring new employees.”

Quoting an example of tech giant Apple Inc, he said, “Companies can learn from Apple, which has avoided over-hiring and never laid off since 1997. Following such measures would save companies’ reputation and gain long-term employee loyalty”.

But what can you do if you have been laid off?

Stressing that while the global economic crisis is not under one’s control, Saharan shared a few tips that can help you weather such trying times.

1. Register with the employment office as a job seeker
2. Keep an eye on your credit score
3. Seek financial counselling to plan budgets
4. Network for new job search
5. You can also use this time as an opportunity to upskill and enrol in higher education programs. Many online free courses are available.

Tech layoffs can have a serious impact on your mental wellbeing. (Pic source: Pixabay)

But, even if you have not been laid off, you can stay prepared for such uncertain times. “The layoffs will bring in recession and inflation. As such, consider cutting back on unnecessary expenses such as membership fees or holidaying and save money for hard times. Keep a check on credit card spending and get rid of high-interest-rate loans. Invest in creating an alternate source of income such as rental income,” Akash suggested.

Steps to look after mental health during these trying times

Talking about the same, Arjita shared, “It takes a lot of effort, time, emotional strength and mental strength to leave your country, your people, your family and to come to a different country that is so far to build your life or your career, for your financial prospects and when a situation like these arises, it takes a mental toll no doubt. Things are bad. People are jobless, and just not getting jobs”.

Dr Sanjeev P Sahni, Founder and Principal Director at Jindal Institute of Behavioural Sciences said these are mentally challenging life situations but people need to find the strength to overcome them. “Despite how cliched this may sound, one has to be strong in such a situation. And this strength can come from anywhere; God, parents, friends, hobbies, etc. Such efforts, while inducing some hope in an individual, also divert one’s mind from constant negative thoughts,” he said.

Below are some points by Dr Sahni to sail through a layoff.

Allow yourself time to grieve: Losing your job can be a difficult and emotional experience. So, give yourself time to process your feelings and grieve the loss of your job.

Practice self-care: Taking care of your physical and emotional well-being is crucial during this time. Make sure to eat well, exercise, and get enough sleep. Try to engage in activities you enjoy to boost your mood.

Stay connected: Reach out to friends and family for support. Joining a support group or talking to a therapist can also be helpful.

Keep a routine: Try to maintain a regular schedule and structure to your day, as this can help provide a sense of normalcy and stability.

Stay positive: Try to stay positive and focus on the opportunities that may come from this change. Look for ways to use your skills and experience in new ways.

Plan for the future: Make a plan for your next steps, whether that be looking for a new job, starting a business, or returning to school. This will help you feel more in control and give you a sense of purpose.

Seek professional help: If you are experiencing severe stress or depression, consider seeking professional help. A therapist or counsellor can help you develop coping strategies and provide support.

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