Layoffs and how to handle it

This was foreseen and talked about by everyone. The current situation should therefore come as no surprise.

FAANG companies made a total of more than 100,000 employees redundant in January alone (IND Money, 2023). Not only tech giants are letting people go, but thousands of other smaller and larger organisations across many industries.

Of course, the largest numbers are the most impressive: -9000 at Amazon and now -2200 at Indeed. Who announced redundancies today? For those thirsty for news, the latest information is published on a daily basis on sites such as layoffs.fyi.

How to react to these reports without running into a panic?

It is worth remembering a few things:

1. The market is fluctuating cyclically

It is impossible to go up all the time. Employment waves imply corrections in the market. There is currently a correction in the IT industry. It is disappointing that in the USA, for example, you can find out about dismissal from a meme posted at 4 a.m., but the intensely growing sector apparently has a distinct shortage when it comes to work culture. In most of Europe, the situation is fairly stable, without talk of recession, but in the UK it is no longer just an intermittent economic freeze. One thing is certain – in time the situation will reverse and the market will recover. There are no definitive matters on this sinusoidal market serpent. 

2. Tech is no longer a niche

The boundaries between the tech industry and the rest of the economy are no longer justified. Fintech, Medtech, Biotech, EdTech, RegTech, you name it – all industries, including the arts, are becoming inherently linked to technology. What does this mean for IT employees? You no longer have to constrain yourself to a narrow tech niche. Many companies in the product and service sectors have been long hunting for quality IT professionals to no avail. Now they have the chance to fill their vacancies.

3. Unemployment is still at a record low

According to official figures for December 2022, 1.3 million people in the UK are unemployed (ONS, 2023). With unemployment at 3.7%, this means we are seeing the lowest rate since the 1970s. In other words, we are still in an employee market. Companies are looking for you and the competition is not fierce.

What strategy should you adopt?

1. Choose the right industry

If you have been thinking about finding a job more closely related to your passion, you now have a better chance of doing so. What are the best niches to look for jobs in the UK now? 

Among the 10 fastest-growing industries at the moment (ONS 2022) are:

• Retail & wholesale,
• Health & social care,
• Professional & technical,
• Business administration,
• Education
• Manufacturing
• Accommodation & food
• Construction
• Transport
• Public sector & defence

2. Take advantage of a break in employment

Investing in yourself and upskilling always pays off. Whether you want to grow in your niche or you’re thinking of changing careers, this time can be brilliantly used not only to scroll through job offers but also to take courses and get certifications that will keep you ahead of the curve.

3. Take advantage of networking

More and more people are openly admitting that they find jobs through referrals and with the support of networking. References from trusted people and experts are now playing a huge role when it comes to a career change. Plus, many companies offer referral systems that reward employees who bring new professionals into the company by offering rewards. Talk openly about your job search and do not hesitate to ask for support. 

4. Trust the experts

Keep in touch with recruiters. Working with a recruitment agency leads to a win-win situation. Your hiring translates into tangible benefits for the agency. A professional recruiter will be with you at every stage of the recruitment process, indicate any areas for improvement, prepare you for interviews and even help you create a career path. We are here to help you. If you want a smooth recruitment process, reach out to Talando consultants and send your CV to: [email protected].

What’s next?

In the second half of 2022, the Bank of England predicted the duration of the recession to be 15 months. So you have to wait a little longer for the trend to reverse, but it is only a matter of time. Let’s arm ourselves with patience, new skills, a circle of professional friends and expert support. Such means will help us seamlessly enter the next bull market. And this one is inevitable.