[Asia Economy Reporter Yujin Cho] As Silicon Valley companies, which were the growth engine of the U.S. during the COVID-19 pandemic, are expanding cost-cutting measures such as layoffs and hiring freezes, Wall Street is reaping the benefits.
On the 12th (local time), major foreign media reported that Wall Street is recovering its lost foundation in the talent war by attracting talent leaving Silicon Valley.
As IT talent leaving Silicon Valley flows into Wall Street financial firms such as stock exchanges and banks, the balance of power, which had been concentrated in Silicon Valley since the global financial crisis, is shifting.
According to the site tracking layoffs of IT companies worldwide, 'Layoffs.fyi,' more than 75,000 people have been laid off from U.S. IT companies this year. This is the result of big tech companies, including Apple, the largest U.S. IT company, and Alphabet, Google's parent company, implementing cost-cutting measures and conducting layoffs or reducing hiring.
Apple reduced about 100 contract employees last month, and Google officially announced that it would slow hiring in the second half of this year and stop investing in talent in relatively lower-priority areas. Microsoft (MS) also recently announced plans to lay off 1% of its total workforce (about 180,000 employees).
The worst inflation in history and the U.S. central bank's aggressive tightening policies have dealt a direct blow to tech companies, causing the Nasdaq index, which is tech-stock centered, to plunge 21.60% this year.
While tech companies that enjoyed a boom during the COVID-19 period have been on a downward trend due to the economic downturn, financial companies, whose business conditions are improving due to rising interest rates, are being evaluated by foreign media as a new alternative for Silicon Valley IT talent.
Josh Woods, Chief Technology Officer at Citadel Securities, said, "The number of applicants for tech positions has increased by 50% compared to the previous quarter," adding, "We are seeing many job changers coming from top IT companies such as big tech, cryptocurrency, and startups."
The strengthening of the technology sector by traditional financial companies through the adoption of blockchain technology is also reinforcing this trend by increasing demand for skilled tech talent.
Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, has increased the size of its technology team by more than 25% this year compared to before. An ICE official explained, "More talent is preferring stability due to the economic recession," adding, "Talented individuals with more experience in IT startups and cryptocurrency-related companies highly appreciate the all-around nature of our business."
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