Why tech workers are shifting to financial services – the AI-powered career move
Is the tech job market collapsing? What global trends and the Philippines' situation reveal.
Daily TribuneIs the tech job market collapsing? What global trends and the Philippines' situation reveal.
Tech professionals at work: Navigating a rapidly evolving job market influenced by global trends and local opportunities in the Philippines.
Photo by Mikhail Nilov, Pexels
Recent layoffs in the tech industry have left workers wondering whether the sector is losing its sheen. Reports from Forbes' senior contributor, Jack Kelly, highlight the unsettling reality of widespread job cuts, with even tech giants like Google, Microsoft, Meta, and Amazon reducing their workforce. While these companies were once symbols of stability and growth, the layoffs have sparked fears of an unstable future in tech.
The state of tech layoffs in 2024
As of mid-2024, over 250,000 workers have been laid off globally, according to Layoffs.fyi, a site that tracks job losses in tech. For context, that's a steep rise compared to previous years. Jack Kelly notes that companies like Meta and Google are leading the layoff trend, letting go of thousands of employees. Even smaller startups aren’t spared, with many shutting down or scaling back operations. Forbes underscores that this mass downsizing reflects a shift in tech companies' strategies to prioritize profitability over growth, especially after the tech hiring boom of the pandemic.
What caused the downturn?
Industry experts believe multiple factors are at play:
Economic slowdown: With rising interest rates and inflation, companies are spending less on advertising, one of the major revenue sources for platforms like Google and Meta.
Overhiring during the pandemic: The surge in demand for tech products and services during COVID-19 led companies to expand their workforce rapidly, but that demand has now normalized.
AI and automation: Advances in artificial intelligence are creating opportunities to streamline operations, which unfortunately means fewer jobs in certain roles.
Kelly points out in Forbes that while these layoffs are alarming, they don’t necessarily spell the end for the tech industry. Rather, it's a painful recalibration.
Is the tech sector still worth it?
Despite the grim numbers, tech remains one of the most lucrative fields. High-paying roles in software engineering, AI, and cybersecurity are still in demand. Kelly emphasizes that tech isn't "dying" but evolving. Workers need to adapt by upskilling, focusing on areas like artificial intelligence, cloud computing, and blockchain technology to remain competitive.
What does this mean for the Philippines?
In the Philippines, the tech industry has also experienced challenges, though not at the same scale as in Western markets. Outsourcing companies, a backbone of the local economy, are seeing increased demand for tech-related services, including software development and IT support. However, concerns loom about automation and the rise of AI potentially displacing lower-skill jobs.
On the flip side, the country has an opportunity to position itself as a global tech hub. With a growing pool of talented young developers, government initiatives to boost the IT-BPO sector, and competitive costs, the Philippines can attract companies looking to outsource high-skill roles. Filipino workers must seize this moment by pursuing advanced tech skills and certifications.
As Jack Kelly aptly puts it, “Adversity often breeds innovation.” While the challenges in the global tech sector are daunting, there’s potential for growth and reinvention—both globally and locally in the Philippines.
