Tech Layoffs 2024: Job Cut Is at Its Highest
How to prepare for the impending doom
The tech industry has been hit hard by mass layoffs over the past year, and the situation isn’t showing signs of improving anytime soon. According to Crunchbase, over 191,000 employees of U.S.-based tech companies lost their jobs in mass tech-job cuts in 2023. It’s 2024, and the nos are already at an all-time high.
I made this prediction sometime last year in one of my articles.
“4 Bulletproof Ways to Protect Yourself Against Layoffs in 2024"
Recently, CNBC news reported that over 50,000 tech employees have already been laid off in the first quarter of 2024, which makes this the highest since 2021. Some of the tech companies on the list include Apple, Checkr, AWS, Dell, and Sony, among others.
What should you do?
- You can be indifferent — act like it doesn’t concern you.
- You can see this as the great “Armageddon” and be fearful — Which changes nothing.
- You can be proactive and insure yourself against this unfortunate experience.
While the prospect of being laid off is undoubtedly concerning, there are proactive steps you can take to ready yourself. By getting ahead of the impending doom, you’ll be in a far better position to weather any storm. Here’s how to prepare:
1. Build an Emergency Savings Fund
An emergency fund is the first and most crucial piece of your layoff plan. It is a safety net if you are suddenly out of a job.
Aim to save enough to cover 6–12 months’ living expenses. That means tallying up your rent/mortgage, utilities, groceries, car payments, and other essential bills. Multiply that total by 6–12 to determine your target savings goal.
Contribute as much as you can each month, even if it’s just a small amount. Treat these savings contributions as non-negotiable line items in your budget. That way, the funds will accumulate steadily over time.
An emergency fund of this size gives you a critical runway to find a new job, without having to panic or dip into retirement accounts. It provides valuable financial stability during turbulent times.
2. Diversify Your Income Streams
Relying on a single paycheck is risky, especially in an unstable job market. If your primary source of income suddenly disappears, you’ll be in a very precarious situation.
That’s why it’s wise to start building alternative income streams you can tap into. It will insulate you from the impact of a layoff.
Consider monetizing a hobby or skill set through platforms like Fiverr, Upwork, or your online business. Even something as simple as renting out a room on Airbnb or delivering for a rideshare service can provide supplemental cash flow.
The key is to create multiple revenue sources that don’t directly rely on your 9-to-5 job. That way, if one stream gets disrupted, you’ve got others to fall back on.
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3. Strengthen Your Professional Network
In times of crisis, your professional network becomes an invaluable asset. Strong connections can lead to inside information about impending layoffs, tips on open roles, and even referrals to new opportunities.
Make a conscious effort to nurture your network, even when you’re not actively job searching. Attend industry events, join online communities, and regularly check in with former colleagues. The stronger those relationships, the more leverage you’ll have if you need to tap into them.
Also, ensure your online presence on platforms like LinkedIn is up-to-date and optimized. It makes it easy for recruiters and connections to find you when roles open up.
4. Invest in Your Skills
Uncertain economic conditions also highlight the importance of continually upgrading your skillset. The more valuable and in-demand you can make yourself, the better insulated you’ll be from potential job cuts.
Identify areas where you could use some sharpening, whether that is technical skills, leadership abilities, or industry expertise. Then, create a learning plan to methodically improve those capabilities through online courses, certifications, or hands-on projects.
The goal is to make yourself an invaluable, irreplaceable asset that companies can’t afford to lose — even if they have to downsize in other areas. Your adaptability and commitment to growth will make you an attractive candidate.
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Wrapping Up
By taking these proactive steps, you’ll be in an optimal position to weather any industry downturn. While layoffs may be unavoidable, you’ll have the financial runway, professional connections, and skills to bounce back — stronger than ever. Don’t get caught off guard — get prepared today.
I hope this helps you. If it did, clap me a thousand times (joking, a few tens would do), leave me a comment (it will encourage me a lot), click the follow button and subscribe to get email notifications.
