From the ashes - how the tech industries layoffs might be a good thing

First of all I should start with saying that the current tech recession and layoffs in big tech are, on a personal level, of course horrible. Tens of thousands of people are let go and for some the coming months may seem bleak. There is nothing positive about that. And my thoughts and prayers are with you guys.

This post is about what comes after and about the overall state of the industry as a whole. So if you are one of those that have been laid off or fear that you might be in the future, I do believe that there is light at the end of this tunnel and a better world even on the other side.

Scott Galloway calles what we are currently going through a Patagonia Vest Recession, a recession of the tech industry in its current form symbolized by the ever present casual clothing choice, the Patagonia Vest.

Just for reference a White-collar recession refers to a situation where the unemployment rate among white-collar or professional workers, such as managers, executives, and office workers, increases significantly. And a blue-collar recession refers to a situation where the unemployment rate among blue-collar or manual workers, such as factory and construction workers, increases significantly.

The current situation comes as a direct result of the hiring spree that have swept the whole sector and world since the last reason. Borrowing money has been easy and investment has been at an all time high. Companies have been overhiring by an estimated 20%, just because they can, and startups have been given money as if it was free hoping to turn a profit and become the next unicorn. The result is an overemployment bubble that was going to bust sooner or later and unfortunately it seems to be now.

So how can this be a good thing? Well, big tech has had growing pains for years now and with ever present access to cheap money and a need for growth they have just kept on growing. Hiring the best and the brightest of each generation and having needs far beyond that not only hiring the gold and silver medalists but all the made it to the finals.

This has resulted in a shortage for the tech industry as a whole and other sectors besides the big tech and cool startups have had a hard to impossible time hiring the right people or anyone for that matter. Now that the hiring is slowing down and people are let go the other less cool and prestigious might have their chances at hiring talent.

People that might have been recruited to the big five (FAAMG), Spotify, AirBnb or any number of cool up and coming startups are now available for hire by the old school industries that have been found lacking in the last years. This, I believe, will usher in a new golden age of innovation at the old established companies and in the public sector.

As a consultant this will maybe affect me and my sector negatively, when the direct need to rent talent might be decreasing as the option to occur it again presents itself. But it will also alleviate the current shortage we are seeing. There are more assignments than there are consultants so all in all there will be more than enough for us all to do anyway. I’m not worried.

So it’s good for the companies but what about the individuals that are now losing their jobs and might not be able to achieve their lifelong dream of working at one of the big fives? Well, dire as it might be I still think this in the long run might be a good thing.

I used to work in the gambling sector, and even if it was not that long the time spent felt like ages and the things we did moved us and med personally forward by leaps and bounds. We had a startup mentality and were driven by competition, tried out and adopted tech far before the mainstream sector and got to think big and spend like there was no tomorrow.

When I left, I felt that this was the only life for me. My ambitions and talent were made for this bombastic and dynamic environment and should not be squandered. But luckily I changed my mind.

I have found that using that same ambition and love for tech to other sectors that are less at the forefront have been even more fulfilling. To help those in need to innovate and bring modern technologies and techniques to those that have not seen the light yet.

For me the public sector is the perfect place to be. I can often help my clients to achieve more than they initially dreamed of and feel good about helping the taxpayers tax dollar (or in my case kronor) to go a long way. There is a real scene of achievement attached to the work and not the reinventing and redesigning of the same things over and over again.

If you’re working on redesigning an already beautiful, modern and functional website, move on to help someone that has fallen and can’t get up. There are so many horrible websites out there, bad IT solutions and quite frankly atrocious hacks that we will never be out of work.