As a recruiter for a major tech company, Niki Woodall got the thrill of navigating the digital boom sparked by the pandemic in the early 2020s. This period was marked by rampant hiring and exciting prospects for sales growth.
Then, in the middle of last year, the landscape changed. People have returned to their pre-pandemic habits. Unsustainably low interest rates have given way to inflation. Consumers have started pinching pennies in anticipation of a possible recession. And suddenly tech companies don’t need all those employees anymore.
Woodall and thousands of her colleagues have been laid off since the fall as part of a series of job cuts targeting tech workers across the industry. (She spoke, citing the non-defamatory clause in her severance agreement, on the condition that her employer not be named.) Woodall said she held no grudge against management, but The layoffs were a stark reminder of the dynamics of the employee-employer deal.
“I think people need to get out of this learning and remember that they have to trust themselves first before anyone else,” Woodall said this week.
The unprecedented surge and subsequent layoffs across the industry now total over 140,000, according to data tracked by Layoffs.fyi. Job cuts undermine the confidence of business executives who misjudged the economic winds, stress staff looking for new jobs, and put the rest of the workforce under guns to meet recalibrated growth targets. I’m putting
The current bloodbath isn’t the first example of technological chaos, but the situation is unique. Between 2019 and 2022, some of the tech giants, including Amazon, Meta, and Snap, doubled their workforce. Other companies are hiring as well, and he has increased his workforce by more than 50%. This list included Alphabet, Microsoft, and Salesforce. (One notable exception: Apple, notoriously conservative, only increased its workforce by about 20%.)
However, in the past few months, each of these companies (except Apple) has announced job cuts ranging from 1% to 20% of their workforce. Overall headcount is above pre-2019 levels, but widespread layoffs continue to shock an industry that has long resisted the bursting of the bubble.
“Honestly, no company is responsible for increasing its headcount by 86% in two years. The Power of Trust: How Businesses Build, Lose, and Regain Trust“It has a ripple effect that affects people for a very long time and reduces people’s trust in the organization.”
For high-level tech executives, headcount reductions are largely a matter of dollars and cents. Slowing sales growth and his pessimistic outlook for 2023 will force him to cut staff and refocus hiring in higher-value sectors.
However, this setback will erode some of the goodwill earned through the pandemic, as companies generally chose not to lay off employees despite times of uncertainty.
A survey of 1,100 laid-off people by marketing firm BizReport found that 60% of respondents were less likely to trust their next employer and 44% were less willing to contribute in their next job I am reporting. The survey found that about two-thirds of the approximately 800 respondents who kept their positions through a series of layoffs reported low motivation, feelings of overwork, and a decreased desire to recommend their company to future employers. We also showed that we reported
Sucher says company leaders can maintain some level of employee trust by following a three-step process during layoffs. Details of the rationale behind the job cuts. And take meaningful action to help your staff get back on their feet.
Many executives, including Sucher, pointed to Stripe CEO Patrick Collison’s detailed message to employees who were laid off in November as an example of trust-building. Collison took responsibility for the company’s over-optimism, outlined how his management had erred, and offered him a generous retirement package that included support for his career and immigration.
“A candid and complete apology helps CEOs connect with a diverse audience and show they have a human and genuine side,” said Will Harvey, professor of leadership at the University of Bristol Business School. rice field. luckOriana Rose Royale.
Going forward, it’s up to technology leaders to reassess their approach to hiring in anticipation of growth, said Sucher.
“The big problem is in the realm of strategic human resource management, having a philosophy about what people mean to a company,” said Sucher.
Woodall, who now works as a self-employed career coach, says many of his former colleagues and recently laid-off clients have embraced resilience rather than animosity, but over the past few years experience has left some scars.
“Technologists rode an exciting wave of growth but lacked reliable long-term experience. Historically, something like this happens every 10 to 15 years.” Woodall says. “I think it’s kind of an opportunity to deal with the reality that this is a business and things are always changing in the marketplace.”
This week’s top headlines luck It touches on important issues of corporate trust and accountability.
What the Average 29-Year-Old Business School Student Really Wants Outside of Work, Survey Across 72 Countries
Cash remains king for business school students considering their future employers, making job transparency even more important. luck‘s Oriana Rosa Royle reported. “In today’s world, it’s easy to compare jobs, so lack of transparency leads to lack of trust,” said Jan Malte Jeddeloh, a graduate student at ESMT Berlin, where more than 600 people from 72 countries of business school classmates about their work priorities.
The CEO is wrong in that he wants his employees to work from home.Actually want the best of both worlds
Job site Flexa Careers analyzed more than 7,000 job listings and found a significant increase in ads for positions with “core hours” (usually where staff are required to work set hours and complete other tasks in their spare time) Did. luck‘s Jane Tear reported. This arrangement provides flexibility and demonstrates trust in employees while generating several benefits from working face-to-face.
Data privacy lags behind despite cybersecurity top priority for executives, new report finds
A shortage of qualified staff and underinvestment by corporate leaders continues to plague digital trust teams, resulting in risk mitigation and compliance lapses. luckreported Cheryl Estrada. A study conducted by ISACA, a professional body for IT governance, found that data privacy professionals felt they did not receive enough support from the executives responsible for building and maintaining the department. .
Half of the world’s population is under 30, but they have little say in the decisions that shape their future.It’s time for young people to be seen and heard in the halls of power
David Boynton, CEO of The Body Shop and Marija Vasileva-Blazev, Special Advisor to the UN Secretary-General’s Envoy on Youth, wrote: luck Voters believe Gen Z has the ability to address global issues, but young people are under-represented in positions of authority. “Young people are energetic, thoughtful and forward-looking, and the wider public clearly trusts their views on today’s major issues,” Boynton and Vasilyeva-Blazev wrote. increase.
Each week we look at how a company tackles a particularly thorny topic that can undermine trust in its organizational foundation.
Selling more than sex. OnlyFans CEO Amrapali “Ami” Gan has one of the toughest jobs in the tech industry. A core part of the subscription content company’s business, Adult He maintains the trust of his performers and sex workers while making the platform more mainstream.As luck‘s Emma Hinchliffe reported that it’s a balance that Gan, the company’s former chief marketing and communications officer, has. Results so far have been mixedAfter the former OnlyFans CEO swiftly reversed a move to ban sexually explicit content, Gan empowered his billion-dollar business by supporting content creators’ efforts and easily conversing with them. I have regained the trust that I am giving Yet, despite accolades for its data privacy practices, OnlyFans has not found favor with those seeking safe jobs.