Imagine that you have been working as usual, nothing out of the ordinary BUT out of the blue you hear the Slack Notification on your computer.
Your manager calls you and say that you need to join a meeting with no heads-up for what is all about. Your heart start racing and you don’t know what to expect, seconds later someone from HR also joins the meeting and you hear the following “I would like to thank you for your time with us, but your position has been eliminated effected immediately.”
In less than 30 seconds your life is upside down, and you don’t have an income stream anymore, that’s exactly what happened to me.
Impostor symdrone
Getting laid off sucks. Big time. Especially in tech, where things move fast and suddenly you’re out. That happened to me back in 2021. I wasn’t ready to talk about it then because, frankly, it felt like a punch in the gut.
We all handle things differently, but for me? I spent months doubting myself. Was I not good enough? Did I mess up?
Well, surprise! Turns out, I was wrong about a lot of that. After a rollercoaster of job searching and trying new things, I’m back on track. In fact, I’ve got a fantastic job with this Canadian company in Vancouver.
But getting here… that was a whole other story. That’s why I want to share it with you – the struggles, the lightbulb moments, how I beat that nagging ‘imposter syndrome,’ and landed on my feet.
Plus, we’ll dive into why these tech layoffs are happening everywhere, and what you can do to NOT just survive, but come out stronger on the other side.
Tech Layoffs
Let’s talk about what’s been happening these past few months. Thousands of people, especially in tech, suddenly found themselves out of a job. The worst part? Many believed they were secure with stable careers and high tech salaries, and for years, they were.
Then, reality hits. Suddenly they’re laid off, facing a job market flooded with skilled people, wondering if they’ll ever find that kind of opportunity again. Remember that story about how Facebook paid to a couple of employees to do literally nothing, just so rivals couldn’t hire them? Yeah, those days are over.
This is why it’s been so shocking for many software engineers. They were used to switching jobs at will, grabbing those high-paying offers whenever they wanted. Well, 2022 we saw tons of layoffs, and in 2023 alone? Over 240 thousand tech workers have been let go. That’s mind-blowing!
Possible Reasons?
There’s no one easy answer for all of these tech layoffs. But there are some things that, for me at least, made this whole mess start to make sense. Understanding this trend was a canonical event for me. It helped me realize that so much of this was beyond my control, and it wasn’t about me being a bad engineer.
Honestly, it was a relief!
I know incredibly talented people – seriously, way better coders than me – who also got swept up in this. Their skills didn’t save them from the bad economy and the other reasons I’m about to dive into. So, let’s get into those possible reasons…
Over-hiring & The Pandemic Boom
Section 1:
“Let’s start with over-hiring. Remember how big tech was expanding like crazy before the pandemic? With money so cheap, companies were all about growth, and that meant a desperate scramble for talent. It was a weird time, honestly. I was getting interview offers daily with promises of crazy salary bumps. Recruiters were throwing out salary numbers right away to snag your interest – nothing like how it is now!
In that frenzy, some less-qualified people slipped through the cracks, landing high-paying jobs they couldn’t keep up with. I know folks who doubled or tripled their salaries, only to get fired a few months later when they couldn’t deliver.
But it wasn’t just bad hiring. The need for software engineers was a symptom of something bigger: the sudden pressure to ‘digitize’ everything. Think about it – with lockdowns, groceries went online, entertainment went online. Netflix, YouTube… boom! And to make all that happen? You guessed it – more people!
Over-hiring happens in bursts, like when a company buys a competitor or gets a ton of funding. But the scale this time around felt different. My guess? Low interest rates made it seem like a gamble worth taking.”
Section 2: Transition to Interest Rates & Spotify
“Speaking of risks and funding… that brings us to the Spotify layoffs. Late in 2023, their CEO announced cutting 17% of the workforce, blaming the economy and the cost of capital. This is where interest rates matter. When they go up, it makes investors way more cautious, and companies have to rethink their spending.”
Interest Rates
Remember how, at the start of the pandemic, interest rates plunged? Money was practically free, fueling everything from cheap mortgages to risky investments. The goal was to keep the economy from collapsing, encouraging people to spend and businesses to borrow.
The Startup Scene
For startups, those low interest rates were a double-edged sword. Sure, money was easy to come by, but the pandemic also threw everything into chaos. Economies stumbled, consumer habits shifted wildly, and those crazy pre-pandemic growth rates weren’t always sustainable.
At the same time, VC funds and companies were realizing that getting huge returns on startup investments would take longer…if they happened at all. Remember, only a small fraction of startups actually become massive successes.
The Shift
Fast forward to things opening up, and the hangover hits. Inflation spikes, and bam, the Fed starts jacking up interest rates. Suddenly, all that VC capital gets way more expensive to use. Angel investors start thinking, “Why risk my money on a new startup when I can get a safe 5% return elsewhere?”
The Fallout for Startups
The result? Investment in the tech sector dries up. Companies that relied on VC funding to stay afloat, even if they weren’t profitable, now face a harsh reality. The path to profitability becomes the ONLY path. No more fancy Series B or C rounds unless you’re raking in the cash.
That’s why the layoffs began. Startups desperately needed to “stretch their runway” – basically, the amount of time they can survive without more money. Let’s say a company burns $10,000 per month but only has $100,000 left. They’ve only got ten months to change their fortunes, or they’re done. Cutting jobs becomes a desperate bid to survive the pandemic, inflation, and the potential recession.
Career: Dealing with the Emotional Fallout
Okay, now that we’ve looked at why these layoffs happened, let’s talk about how to get through it. First, you’ve got to get your head on straight. It’s hard, but you won’t get far if you’re stuck blaming yourself.
Remember, there are massive forces at work here. Unless you had major performance problems, this was likely about those bigger issues, not your worth as an engineer. The sooner you accept that, the sooner you can start moving forward.
If you need help processing this, don’t be afraid to reach out. Talking to a therapist did wonders for me. Sometimes, an outside perspective can help cut through the mental fog.
Also, remind yourself of all you have accomplished. Think back to your past wins, how far you’ve come. It’s easy to forget that when you’re feeling down. Maybe even keep a journal to track little wins – they add up! “
Career Advice
“The best careers are about growth, learning from mistakes, and getting tougher. Here’s a few things to keep in mind:
- Have a Vision: Where do you want to be in a few years? Without a goal, it’s hard to know which steps to take.
- Turn Setbacks Into Growth: Mess up a project? Use it as fuel to learn and do better next time. Challenges make you stronger.
- Be Open to the Unexpected: Don’t be afraid to try new things. You might discover a hidden talent or a skill that takes your career in a cool new direction.
Okay, enough career advice for now! Let’s talk about something seriously important: understanding the people you work with, especially your employer…
Get to know your employer
Knowing Your Employer: Beyond the Buzzwords
Think back to how you landed your current job – or your last one. Was it through a recruiter? Remember those interviews? The whole “best place to work” pitch? That’s important because most companies try to sell you a dream. It’s rare for recruiters to tell you the real deal about what it’s like day-to-day.
You’ve got to learn to read between the lines. Different types of companies come with different realities:
- Small Startups (Pre-Revenue): They’re like speedboats, constantly testing new ideas to find something that makes money. Your priorities might shift quickly, and there’s pressure to move fast. If that doesn’t sound like you, it might not be a good fit.
- Large, Established Companies: They’re like cruise ships, slower and more stable. You might have more time to perfect your craft, but you’ll also have to learn to navigate office politics.
For a deeper dive into this, I highly recommend “The Software Engineering Guide Book“. It’s packed with insights to help you understand what you’re getting into.
The Golden Rule: Know How They Make Money
My number one piece of advice? Understand how your potential employer makes money. If it seems shady or you just don’t get it, that’s a red flag. A business that can’t explain its revenue probably won’t be around for long.
Your Homework (Before You Say Yes)
Here’s a quick checklist to help you vet a company:
- Who are their competitors? Check if those companies are growing or shrinking.
- How big is their market? Is it expanding or saturated?
- Are they transparent about revenue? Look for public financials or ask if they share those numbers internally.
- What’s their employee turnover like? Check LinkedIn or Glassdoor to see how long people typically stay.
- Talk to people who’ve worked there: Reach out on LinkedIn for the real scoop.
Once you’ve done your research, you’ll be better equipped to make a decision that’s right for you.
Okay, now let’s shift gears again and talk about those professional skills you should develop.
Expand your skills to be someone worth hiring
Leveling Up Your Technical Game
Let me ask you: “What are you, technically?” What do you really know? How do you bring value to the table?
Understanding your professional identity is crucial. It helps you figure out if you’re on the right track, or if you need to shift gears to make yourself truly valuable in today’s job market.
Are Your Skills Up-to-Date?
Let’s talk tech stack. Are you on top of the latest trends? How do they compare to what you use at work? Are you current, or are your skills getting outdated? A good engineer knows the answers to these questions. They can weigh the pros and cons of different tools, and stay ahead of the curve.
If you’re bored because you’re stuck doing the same old thing, remember: businesses exist to make money. But that doesn’t mean you can’t influence change. If you can make a solid case for why a new tool or approach would be better, you’ll gain valuable experience in the process. Needless to say that your communication and negotiating skills will level-up.
Failing Forward
Embrace the opportunity to experiment and even fail. Learn why things didn’t work, do a post-mortem, and apply those lessons to the next challenge. If your current company doesn’t allow for failure, find one that does.
By the way, this kind of initiative is GOLD in job interviews. When you’re asked about challenges you’ve faced, you’ll have real stories to tell, not just some canned response.
Building a Portfolio That Pops
We developers need more than a resume. We need a portfolio that showcases our skills. The good news is, you can build cool stuff to impress potential employers… and maybe even start a lucrative side project!
Before I got into tech, I worked at a bank in Brazil. I had zero experience, so I built a portfolio to prove I knew my stuff. It worked – I got a job quickly, and the pay was great.
My advice? Don’t build generic projects like everyone else. Find something you’re passionate about. I love movies, so I built a community app for fans of a specific genre. It was a great talking point in interviews because it showed I could build real products, not just code exercises.
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