Seeking Stability Instead of Prestige
Shifting to Other Industries
Amid a new hiring freeze, salary cuts, and anxiety over layoffs with no clear timeline, an increasing number of technical workers are leaving large tech companies in search of stability over prestige.
On the 9th (local time), The Wall Street Journal (WSJ) reported that cases of disillusionment with big tech companies and transitions to non-tech industries, small and medium-sized enterprises, and freelance (non-regular) jobs are on the rise.
As layoffs continue at big tech companies like Google, Meta, and Amazon, which have entered ultra-tight management, more people who were laid off from these large tech firms are seeking jobs at small and medium-sized enterprises, freelance positions, or moving to other industries such as finance, manufacturing, retail, and healthcare.
Lewis Moynihan, who was laid off from WhatsApp, the world's largest social media company Meta, last November, said, "I never want to go through (being laid off) again," and plans not to apply for regular full-time positions. Instead of taking a job with a lower salary and uncertain job security, he chose a freelance position earning $300 per hour.
For years, U.S. big tech companies engaged in fierce talent wars. To attract top talent, they offered not only high job security but also huge bonuses, various in-house perks, and abundant benefits, making big tech the dream workplace for U.S. technical workers. Especially during the pandemic, as their performance soared, large tech companies expanded their businesses, increased investments, and accelerated hiring.
However, the situation has changed. With a shift to intense tightening, soaring costs due to inflation, and concerns over a deepening recession, the business expansion has backfired, leading big tech companies to enter emergency management and initiate successive restructurings.
Amazon conducted the largest restructuring in its history by cutting more than 30,000 jobs, and Meta, which reduced over 20,000 employees, announced that "this year will be the year of efficiency," signaling further layoffs. This additional layoff anxiety is fueling the exodus from tech companies.
They are leaving large tech companies and transitioning to other industries such as manufacturing, retail, finance, and healthcare. WSJ cited Revelio Labs, a U.S. human resources research firm, analyzing that the number of technical workers from big tech moving to non-tech industries has reversed a years-long decline and started increasing since the end of last year.
Chris Rice, a partner at Riviera Partners, a tech headhunting firm, said, "Most employees laid off from tech companies feel disillusioned with the industry." In the past, people could build careers at one company for years without worrying about layoffs, but that is no longer the case. He added that due to the rapidly changing employment environment, there is a growing tendency to seek technical jobs at startups in new industries such as artificial intelligence and green energy.
Experienced applicants from big tech are also increasing in retail and manufacturing sectors, including grocery manufacturer Kraft Heinz and the largest U.S. retailer Walmart. Donna Morris, Walmart’s head of HR, said, "In the past, we struggled to hire talent in the tech sector, but now it’s different." Melissa Vernek, Chief Human Resources Officer (CHO) at Kraft Heinz, said, "People from big tech are knocking on our door."
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