Layoffs, Anxiety and Coffee

Layoffs, Anxiety and Coffee

Traversing from Great Resignations to Traumatic Layoffs in the times of Recession, War and AI!

Well, I wish we had never used the word “Great” to describe “Great Resignations”. The bubble was meant to burst and it has. Media over glorified the mass resignations leading or wishing to believe that it is going to stay forever. But, as in life, business too follows a sine curve. If “Great” Resignation was time of crest, “Traumatic” Layoffs is a trough. You may wish to use any other word in place of “Traumatic” but avoid using “Great”, once again!

Layoffs

The COVID-19 pandemic caused many companies to reduce their workforce, leading to layoffs at Uber, Airbnb, and other businesses. While this was unfortunate, there was a silver lining for tech professionals. After a brief period of initial depression, many companies significantly raised their hiring targets as they rushed to complete pending initiatives and digitize their processes, systems, and business models. However, it was not easy for companies to find the talent to fulfill this demand, and talent became increasingly valuable. Many tech workers found themselves in high demand and were able to take on multiple job offers. Talent was ruling the roost. As it was found, they didn’t need to do one job, they could do as many as they wanted! And many of them did so.

This trend contributed to the "Great Resignation," where workers who were dissatisfied with their current jobs or were offered better opportunities elsewhere left their current positions en masse. Companies suffered "great" attrition rates ranging from 30% to 50% during this period, which was unsettling.

Tech companies went all out to offer significantly higher salaries to address the issue of candidates not showing up for interviews, creating a huge demand bubble in the industry and in many cases, a much higher bench than needed. Well, it didn’t last long. Bubble had to burst one day. This demand and talent crunch were short-lived, as expected. That hurts but it shouldn’t surprise as much as it does.

As companies hoarded talent and professionals, activist investors started questioning large tech companies' increased spending on workforce, declining profits, and competitiveness in the emerging new world.

Read here an open letter to Meta by Altimeter!

Moreover, the unfortunate crash of Silicon Valley Bank, Silvergate Bank, Signature Bank, and other banks led to an unexpected panic. Startups' funding also came crashing down, forcing them to cut expenses, including talent.

At this time, companies are tightening their belts and squeezing every bit of productivity out of their teams. They are reducing their benches, demanding higher productivity, automation, and leaner teams from management. Many technology professionals are now at a crossroads and are evaluating how to move forward in their careers.

Anxiety

Anxiety, anger, fear, and frustration are common emotions experienced by professionals, regardless of whether they have been laid off or retained by their companies. The current economic climate, combined with the uncertainty created by recession, war and AI, has left everyone feeling uneasy. While talent and professionals continue to remain on edge, companies are not in much better position. ?Even those companies that have managed to retain their staff are struggling with their social image after letting go of employees they considered family, just until very recently. While healing will take time, public memory is short, and companies will eventually need to regain the trust of their employees.

For startups, attracting talent has become an even bigger challenge due to the perceived risk and reduced funding. Working from home(WFH) has disrupted the talent availability and consumption, leading to both positive and negative possibilities. While it has enabled talent to work from anywhere, it has also made it difficult for organizations to focus on innovation, new products, and R&D. New initiatives require collaboration, brainstorming, huddle, and hustle, which is difficult to achieve when people are working from home. While individual productivity may not have been impacted by WFH, team productivity and the speed of change have been sacrificed.

Read below two recent conflicting views on WFH.

Innovation View: Remote work one of the biggest mistakes made by technology industry: OpenAI CEO Sam Altman

Productivity View: Why your boss is giving in to the siren call of the return to the office–and giving up on the flexible work gold mine

WFH has made clients, managers, and companies anxious about the predictability of service quality. Working from home has also caused people to experience proximity bias, making them more anxious due to the perception that they are not working as hard as those who are physically present in the workplace. WFH is here to stay, and while it may have happened too soon and too quick due to the crisis situation created by Covid, it has also brought about opportunities for upskilling and growth.

Talent is under stress from all directions. It is not about just looking for another job anymore. It is also about upskilling themselves as ChatGPT has arrived. I wish it had come at some better(not great!) time but then what is the definition of good time. The advent of generative AI, automation, and predictive analytics has created fear and insecurity among tech professionals, much like the introduction of calculators, computers, and ERPs did in the past. It is time for techies to adapt and embrace the changes brought about by AI, as it has impacted not only the technology industry but every other industry as well.

This time, its generative AI, automation and predictive analytics that’s ruling the roost!

Coffee

It's time for us to pause and smell the coffee. If you have recently been laid off, coffee can help you open your eyes and see the new world. And even if you have retained your job, it's still important to take a moment to reflect because the world around us is changing, and it's changing fast. AI and its products, like ChatGPT, have captured our imagination and taken it to the next level. While we can argue about how it will affect future jobs, automation, and productivity, there is no denying its power.

So, why coffee? Well, I'm not suggesting that you should start drinking excessive amounts of it to solve your problems. Instead, it's a wake-up call for all of us to open our eyes to new possibilities. The good news is that the hype is often bigger than reality, but it's also true that if the change and disruption come faster than expected, it will unsettle our lives beyond expectations.

Let's assume that the hype is greater than reality, and we have some time to adapt and change our ways of working and our skills to match the needs of the future. I recommend that you start researching which parts of your job may be getting automated and how you can bring differentiation to your role. While some work may change, collaboration will still require human intervention. Single lines of code are easier to automate, but integrating and assembling code to create an application will be challenging and require developer or architect intervention. The products, integration, and services domain will only expand as more work gets automated and shifts from one domain to another. AI tools may generate code, but they still require accurate specifications from a business analyst or product manager. Similarly, design thinking will be necessary to meet different usability needs, which will require innovation and creativity.

Before I conclude, I'd like to suggest a few things to ponder over:

1.??????Read articles, but ignore those that cause anxiety. Many people write just because they have to write and may not have a deep understanding of long-term trends.

2.??????Reinvent yourself by developing new skills, networking, and taking courses.

3.??????Identify new opportunities to engage. Take on contracting work, imagine a startup, or identify a problem and try to solve it using technology.

4.??????Most importantly, network. While working from home is convenient, there is no substitute for networking and meeting industry peers. Exchange ideas, learn from each other, and find crossroads of innovation.

As we navigate the fast-paced world of technology, it's essential to recognize the opportunities that lie ahead. There is no reason why there will be any long-term slowdown for tech skills. Here are some opportunities worth considering:

1.??????Digitalization is still in its nascent stage, and every industry and company requires tech skills. This presents an opportunity for companies to hunt for tech talent, which is now more available than ever before, and speed up their transformation programs.

2.??????Startups will have access to better talent and must redefine their strategy to develop innovative solutions. They should also leverage new working models such as WFH, moonlighting, and contracting to reduce their cost of development.

3.??????While tech companies may face pressure from investors to lay off staff, it's also an opportunity for them to reassess their revenue models and determine where they can achieve better profits. Running a loss-making company is not sustainable, and it's crucial for these companies to explore new strategies for growth.

Instead of worrying about the past, focus on the present and the future. Stay confident, stay connected with your network, and continue to hone your skills to remain relevant in this ever-changing world of technology.

So don’t cry over spilled milk, it could have been coffee!

As the saying goes, fear only persists until you confront it. But the moment you challenge it, it disappears. And that's where coffee comes in - it can be a symbol of confidence, resilience, and determination. Whether it's pushing back against obstacles, fast-forwarding through challenges, or staying ahead of the curve, coffee represents a "can do" attitude that can help you reimagine yourself.

Hopefully this short piece will inspire you.

One advice to techies to avoid being laid off, from ex Reddit CEO

So go ahead, take a whiff of that invigorating aroma, take a sip, and let it inspire you to be your best self. Embrace the challenges ahead with a positive mindset and a belief in your own abilities. And remember, with a little bit of coffee-fueled courage, there's nothing you can't achieve as there is always a way!?

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