The Great Tech Reset: Turning Big Tech Layoffs into Opportunities for Government Technology

Over the past two years, tech giants have laid off around 400,000 employees globally, with an additional 133,000 so far in 2024, and more layoffs are coming as we close out 2024. As the market continues to fluctuate and the role of big tech in society is reassessed, public sector positions—offering benefits like pensions and the chance to contribute to the greater good—are becoming increasingly attractive to job seekers.

Government technology companies, as well as state and local government agencies, now have access to a vast talent pool enriched by skilled workers recently laid off from companies like eBay, Tesla, Google, and others. The ongoing wave of layoffs in the tech sector presents a unique opportunity for government technology suppliers and agencies to attract fresh, young talent and meet the growing demand for digital services.

However, recruiting and retaining these recently displaced tech workers presents its own set of challenges, even as the government tech sector anticipates another year of growth.

As companies like Cisco, PayPal, Meta, and Apple downsize in response to rising capital costs and recession fears, tens of thousands of potential hires are entering the job market. Every day seems to bring new discussions about the "end of the Big Tech Era" and the impact on the workforce that thrived during the industry's boom years.

For the public sector, these private-sector layoffs coincide with significant changes in government technology. Recent data indicates a decline in the number of government tech workers in some agencies for the first time since 2014, possibly due to the easing of the pandemic and organizational consolidation. Nonetheless, factors like the growing importance of cybersecurity, an aging workforce, and the push to digitize public services continue to generate job openings in state and local governments.

These shifts affect not only government agencies but also their tech vendors, especially as more agencies consider outsourcing their tech operations.

Forward-thinking government agencies are beginning to recognize the potential to attract top-tier talent from the current job market and are rethinking their recruitment strategies accordingly. The challenge for these agencies is to act swiftly to attract, hire, and onboard these candidates.

Retaining new employees is crucial. This means streamlining the hiring process to reduce steps and promoting the stability and comprehensive benefits of state and local government roles—advantages that often outweigh the inability to match private-sector salaries.

Furthermore, it's essential to highlight the unique purpose of government work, which could appeal to idealistic job seekers now looking for new opportunities. The public sector has a powerful narrative about its mission and its impact on the communities it serves. Leveraging this mission to foster a sense of purpose among prospective employees could be a key differentiator, particularly for millennial and Gen Z talent.

Private-sector professionals transitioning to government roles will want assurance that they can grow, develop new skills, and face meaningful challenges. Government agencies should innovate in how they provide diverse experiences that promote employee growth while addressing their critical needs.

By capitalizing on this moment, government agencies have a unique opportunity to reshape their workforces and deliver better outcomes for the people they serve.