Finding job security amidst tech layoffs
“Everyone in tech is getting laid off. Is it worth leaving an industry I’m tired of, but has job security?”
Let’s unpack the headlines.
The tech unemployment rate dropped from 2.1 percent to 2 percent in May according to CompTIA, vs the overall national unemployment rate which is 3.7 percent.
Yes, more than 160k jobs have been cut. But the industry is still creating jobs at a fast clip, quickly closing the gap. Primarily shifting roles from large tech to earlier startups. That being said, there are jobs in tech that are more secure than others, based on an analysis of layoff trackers. After more than a decade in tech leadership, this is why I believe some roles are impacted more than others.
In SaaS companies, recruiters are typically the first to go, because even if you’ll be hiring again soon, it’s hard to justify these roles during a RIF (Reduction In Force). These jobs will come back, but slowly. The slack with be picked up by hiring managers.
Sales Development and Marketing are focused on activities that won’t deliver business value for months or even years into the future. When times are tough, and a big infusion of VC capital isn’t immediately available, companies take a bird-in-the-hand approach.
Some companies will outsource/offshore tech support to save costs. The experience may not be as good, but new tools and AI enablement is making this a more tenable solution.
Salespeople are held to a higher standard than when times are good. Those selling into segments where business is hard may be let go, and generally anyone unlikely to be cost-neutral or cost-positive for the company. Hopefully, that is a small pool, and almost always those roles are quickly backfilled. Existing sales reps may be asked to pick up additional business development work.
Like Marketing, Product roles can be impacted because companies focus on selling and servicing what they already have instead of investing heavily in the future. These roles do tend to come back quickly, but they may look to bring on lower seniority resources to save costs.
Roles that support retaining/growing customers by continuing to deliver value for the current products, and collecting on existing contracts are typically safe. Customer Success has made up only ~2% of layoffs thus far.
I acknowledge this is an over-generalization and my heart goes out to anyone who has been impacted by layoffs. However, it’s helpful to consider the headlines with more context. The SaaS industry is still projected to grow 17% in 2023, with double-digit annual increases predicted into the foreseeable future. Not many other careers can come close to that kind of opportunity.
