Tech is being hit hard in this economy. Layoffs keep hitting the industry and creating uncertaintywithin many employees and their families. Challenger, Gray & Christmas reports year-to-date cuts are the highest since 2020, while hiring sits at its weakest since 2009. Here’s what’s going on and tips to preparing for your next opportunity.
What’s the latest? Through September, Technology companies have announced 107,878 job cuts, including 5,639 last month, according to CGC (the company I work for). Their research shows technology companies have cut 241,866 jobs since January 2024. You see the reality: getting a new role in many cases could be even tougher than keeping the last one.
Here’s what tech workers are up against in today’s job market:
1. Fewer Openings, Higher Bar
Entry-level and mid-tier jobs are shrinking. Companies want specialists who can contribute on Day One, leaving many candidates stuck in a “too junior / not senior enough” trap.
2. AI Complicates the Picture
AI creates new opportunities but also replaces some coding and testing work. If you can’t explain how your skills add value beyond AI tools, you risk getting screened out.
3. Brutal Interviews
Expect longer, tougher loops. Companies want perfect matches, not “good enough.” Communication, systems thinking, and tradeoff explanations matter as much as raw coding skills. Be able to explain why you chose one approach over another. On top of everything else, practice your communication skills.
4. Fewer Safety Nets
Contract roles don’t necessarily lead to full-time offers now. Many pay the bills but don’t build the experience or visibility you need to land your next big role.
5. Tougher Offers
Even when you win the job, offers are leaner. Lower salaries, fewer perks, more “do more with less.” On top of that, candidates should address the choices: do I want a higher pay at riskier companies or lower pay at more stable ones. This decision could be more critical now than when you first started your career.
6. Mental Toll
You will face rejection. Then there’s the pressure to upskill. I’ve seen some of my clients burn out by long searches. My key advice is to pace yourself and take time to play. That’s another blog for another day, but you get what I’m saying: be kind to yourself. Take that road trip or even the bike ride you planned in another state.
Now, How to Compete
- Specialize in areas with demand (AI, cloud, security).
- Build a proof portfolio and include real projects you’ve shipped i.e., an app or website you built. Share any contribution to open source or shared code. Share your writing and communication expertise through a blog post or a tutorial you created.
- Lean heavily on referrals and your network. In real estate, you’ve heard it’s location, location, location. In the job hunting state, it’s network, network, network.
- Negotiate smartly beyond base pay.
- Guard your energy because this is a marathon.
Bottom line: The layoffs make headlines, but the harder story is the job hunt that follows. The market is lean, the bar is high, but tech talent is still getting hired. The question is whether you can show quickly and clearly why your skills matter now.
Click here for Challenger’s Full story on the September Job Outlook
Need help with your job search, telling your story, or getting clarity? I’m here to help you take the next step