Navigating Tech Layoffs

AI took the blame for mass layoffs in tech. But there's another culprit. Quietly baked into a tax law years ago. For years, Section 174 of the U.S. tax code let companies fully deduct R&D expenses the year they were incurred. That meant engineering hires, cloud infrastructure, and experiments all came with a tax break. So tech giants invested aggressively. Then came the 2018 Tax Cuts and Jobs Act (TCJA). Part of TCJA changed Section 174. Companies had to spread deductions out over five or even 15-year periods. The timing was brutal. Salaries and software no longer offered the same tax benefit, right when venture funding tightened and interest rates climbed. The change kicked in by 2022. The wave of mass tech layoffs began to surge. Became particularly prominent in 2023. Meta cut 25% of its workforce. Microsoft slashed thousands of product and engineering roles. Startups, without Big Tech’s cushion, slashed headcounts. Yes, AI may have played a role and might become the main driver in the years ahead. But tax policy quietly set the stage long before the pink slips started flying. Now, with a new tax bill in motion, I’m curious What changes are coming next… and which industries will be caught off guard? *Original image by Shravan Tickoo Really sharp visual and a solid list! 🙌 I adjusted the title to highlight the tax side of the story. The original point still absolutely holds. #tax #layoff #ai #entrepreneur #tech ____ P.S. My newsletter (Join 20,000+ subscribers): https://t2m.io/OUvcJ5gL

🛑 Let’s Talk About the Real Reason Behind the AWS Layoffs There’s been a lot of talk recently about Amazon’s layoffs in the AWS division, and some of the statements coming out of leadership have been… well, let’s call them “interesting.” CEO Andy Jassy suggested that generative AI and workplace automation could lead to a smaller workforce. While that may be true in the long-term, let’s not sugarcoat the real story here. The elephant in the room is overhiring and a slowing cloud market. AWS has been one of the most dominant players in cloud computing, but like every company in this sector, it isn’t immune to market realities. Growth is leveling off, competition is stiffer than ever, and enterprise customers are scrutinizing spending as they optimize their cloud deployments. Let’s not forget: AWS missed its last three quarterly revenue targets. That’s not a signal of a business on a rapid growth trajectory—it’s one steering into headwinds. Businesses have cycles, and expansions should align with sustainable, long-term demand. Yet, during an earlier surge in cloud adoption and pandemic-driven tech investments, we saw an unsustainable pace of hiring that went unchecked. Now, as the market matures, organizations (AWS included) are starting to feel the pinch as growth slows. That’s the real driver here. Blaming workforce reductions on generative AI feels like a bit of a copout. Sure, AI is revolutionary—it’s going to reshape industries and streamline certain roles. But what’s really happening is recalibration: a course correction from overhiring, combined with the realities of a marketplace adjusting to slower growth and increasing competition. Let’s stick to the facts and stop spinning layoffs as part of the “tech evolution.” Behind every layoff is a human being whose life is impacted, and they deserve transparency and honesty about what’s happening. Looking at the bigger picture, AWS and other cloud providers still dominate the tech landscape, but that doesn’t mean every day will be smooth sailing. For those impacted: my heart goes out to you, and I hope you find new opportunities to contribute your talents. What do you think? Are we being too lenient on leadership’s messaging, or do we need a sharper focus on market realities? Let’s have an honest conversation. #AWS #CloudComputing #BusinessRealities #Leadership #AI

As someone who has personally experienced a layoff due to a company re-org, I am no stranger to the emotional rollercoaster of feelings that can range from shock and frustration to anger and embarrassment. Navigating the intricacies of a job search after a layoff can be a daunting challenge, but with the right tools anyone can succeed. Just as a skilled tailor crafts a garment with precision, here are some tips you can use to tailor your career approach for success, even in the face of unexpected change. 🔍 Assess Your Professional Wardrobe: Just as a tailor carefully measures and hones their craft, take stock of your skills, experiences, and accomplishments. Craft a compelling resume and LinkedIn profile that impeccably showcase your unique value proposition. Highlight the fabric of your professional journey, emphasizing key skills and achievements that make you stand out. 📏 Measure Twice, Cut Once: Before diving into applications, take the time to define your career goals and aspirations. What are your non-negotiables in a role? What skills and experiences do you want to acquire? Tailoring your job search strategy requires a clear vision, helping you avoid unnecessary detours and focus on opportunities aligned with your long-term objectives. 🧵 Stitching a Network: Just like a tailor relies on a network of threads to create a seamless garment, building and nurturing your professional network is essential. Leverage LinkedIn to connect with professionals in your industry, attend virtual networking events, and seek informational interviews. Networking is the fine art of relationship-building – a crucial aspect of any successful career. ✨ Personal Branding – Your Signature Stitch: What sets you apart in a sea of candidates? Your personal brand! Just as a tailor’s signature stitch distinguishes their work, your unique skills, values, and personality should shine through in your professional brand. Consider what makes you memorable and weave that into your narrative. 🪡 Tailor Your Approach for Each Opportunity: While mass-producing may work for garments, it's not the case for job applications. Tailor your resume and cover letter for each role, emphasizing the skills and experiences most relevant to the specific position. This personalized touch demonstrates a genuine interest in the opportunity and increases your chances of standing out. Remember, the process of tailoring your career path requires patience, precision, and a commitment to continuous improvement. Your journey is uniquely yours, and every stitch contributes to the masterpiece of your professional narrative. If you have any questions or insights to share, let's connect! Wishing you all a tailored path to success. 🌟👔 #CareerCoaching #JobSearchStrategy #ProfessionalDevelopment #TailorYourCareer

✨Recently laid off? Check out this inspiring story from my client. Job seekers navigating career transitions should consider two key strategies: Recommendations and Networking (I know, there is much more to the story; read on!). 🔻 First, update your LinkedIn profile, including exchanging recommendations with colleagues, managers, and external partners like vendors or customers. This effort yields significant benefits: • Recruiters value social proof from recommendations showcasing your leadership and communication skills. • It offers a prime networking opportunity—if approached strategically. H͟e͟r͟e͟’s͟ ͟a͟ ͟c͟a͟s͟e͟ ͟i͟n͟ ͟p͟o͟i͟n͟t͟:͟ I just finished a call with a client who had been preparing for a career change for about a year. Unexpectedly, she was laid off as part of a broader company downsizing. Fortunately, she was well-prepared and remained calm. She resumed an earlier task of requesting Zoom meetings and testimonials from her network. To her contacts’ surprise, they learned of her recent layoff. Now, she’s exploring several opportunities. Remarkably, one conversation revealed 𝗧𝗪𝗢 𝗲𝗺𝗲𝗿𝗴𝗶𝗻𝗴 (unwritten and unposted) job roles tailored to her expertise at an exciting company overseas. C͟o͟n͟s͟i͟d͟e͟r͟ ͟t͟h͟i͟s͟:͟ 𝗶𝗳 𝘆𝗼𝘂’𝗿𝗲 𝗻𝗼𝘁 𝗲𝗻𝗴𝗮𝗴𝗶𝗻𝗴 𝘄𝗶𝘁𝗵 𝘁𝗵𝗲 𝗵𝗶𝗱𝗱𝗲𝗻 𝗷𝗼𝗯 𝗺𝗮𝗿𝗸𝗲𝘁—𝘄𝗵𝗲𝗿𝗲 𝗽𝗼𝘀𝗶𝘁𝗶𝗼𝗻𝘀 𝗮𝗿𝗲 𝗯𝗲𝗶𝗻𝗴 𝗰𝗿𝗮𝗳𝘁𝗲𝗱 𝗯𝘂𝘁 𝗻𝗼𝘁 𝘆𝗲𝘁 𝗮𝗱𝘃𝗲𝗿𝘁𝗶𝘀𝗲𝗱—𝘆𝗼𝘂’𝗿𝗲 𝗺𝗶𝘀𝘀𝗶𝗻𝗴 𝗼𝘂𝘁 𝗼𝗻 𝗽𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀 𝘁𝗵𝗮𝘁 𝗰𝗼𝘂𝗹𝗱 𝘀𝘄𝗶𝗳𝘁𝗹𝘆 𝗹𝗲𝗮𝗱 𝘁𝗼 𝘆𝗼𝘂𝗿 𝗻𝗲𝘅𝘁 𝗿𝗼𝗹𝗲. My client's proactive discussions have already positioned her for five potential jobs, some of which are still being defined. Next steps? We’re preparing to utilize my “write and pitch your own job description” technique when these companies express interest in crafting a role that leverages her skills to meet their needs. Isn’t that amazing? ✨ For more ideas about what to do to prepare for a layoff, here is a link to the Forbes Coaches Council article: 𝗟𝗮𝘆𝗼𝗳𝗳 𝗦𝘂𝗿𝘃𝗶𝘃𝗮𝗹 𝗚𝘂𝗶𝗱𝗲: 𝟭𝟮 𝗖𝗮𝗿𝗲𝗲𝗿 𝗧𝗿𝗮𝗻𝘀𝗶𝘁𝗶𝗼𝗻 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗲𝘀 𝗙𝗼𝗿 𝗘𝘅𝗲𝗰𝘂𝘁𝗶𝘃𝗲𝘀: https://lnkd.in/gpGf8jXs #jobs #careers #management

The tech industry is at a crossroads, with over 720,000 jobs cut in the last year. We explore this shift, focusing on the economic and technological forces reshaping the sector's future. This analysis delves into the dynamics behind the recent tech industry layoffs. We examine the impacts of post-pandemic hiring trends, the rise of AI, and economic pressures. We uncover the multifaceted nature of these corporate decisions and what they mean for the future of technology and its workforce through insights from experts and economic data. 🌐 #TechJobCuts: A significant shift with over 720,000 roles eliminated. 💼 #PostPandemicRebalance: Companies adjusting after pandemic hiring excesses. 🤖 #AIRise: AI's growing influence on workforce and investment strategies. 💲 #EconomicDrivers: Inflation and profitability shaping tough decisions. 🔄 #WorkforceResilience: A tight labor market offers hope for displaced tech

There are a lot of people who are going through #layoffs right now and find themselves in an unexpected transition. Take it from someone who went through a mass layoff last year. Who was laid off on Zoom, with very little severance, and who had to get a new job (for personal reasons) ASAP. You need to remember that it is NOT your fault. You need to keep your head up. The stress and uncertainty of this unexpected transition might affect your health if you do not take care of yourself. Here are my tips from someone surviving a layoff. ✔️Structure your day similar to what you did when you were working: allocate time to network and do #jobsearch, #interview, and time to learn. ✔️Take care of yourself and get to go outside. Take a walk, clear your head, and give yourself time to process it away from the screens. ✔️Eat well. Nourish your body so that it will nourish your mind. A cookie or two is okay, but stay away from eating a whole box. Do not stress eat. ✔️Get rest. Get a good amount of sleep. Do not stay up binging on TV. Go to bed at a regular time. ✔️Enjoy things you love: reading, watching a movie, going to a museum, and getting together with your family and friends. This is a phase of your life. It will pass. Taking care of yourself, your health, and your mental health during this period of your life is crucial to sustaining your fire, your motivation, and your focus. I am opening up my DMs if you need me to review your resume or if you need to share a story. If we worked in the past, I would be happy to write a recommendation or do an introduction. So you can find your new home and start your new and amazing chapter. Like I did. 💖 #layoffs2023 #mentalhealth

my real advice to anyone going through a layoff, from someone who was affected by the tech layoffs: (1) find a job that meets your NEEDS. realistically your next job immediately after being laid off isn’t going to be the $100,000 or 200,000+ offer. unless you have a strong personal and professional network with people in hiring or influential leadership positions, then those lucrative six figure salaries are accessible. (2) you’re going to have to take a pay cut and that’s okay because this isn’t your forever job. this is a temporary job to meet you immediate need(s). depending on your current living and financial circumstances will tell you how much of a pay cut you can realistically afford. (3) if you’re a recruiter, YOUR PRIMARY FOCUS SHOULD NOT BEING RECRUITING JOBS. you need to widened you job search to 10-20 adjacent jobs and job titles to recruiting or talent acquisition. (4) learn how to pitch yourself and create a cold call strategy to ask if people are hiring (5) look at the local school district near you and see their openings. (6) look at your local colleges and universities and see their openings. (7) take a TRUE holistic look at your finances: when does your severance end, how many months do you have until you’re in the urgent zone, how many months do you have until you’re at zero, how long can you live on your savings, do you qualify for unemployment and government aid (8) identify the people that can give you TANGIBLE help and seek TANGIBLE advice from

I was laid off by Tiktok this week amidst a massive restructuring of our internal operations. It’s a classic “Decentralize Ops” move, which in a few years will probably end up in a new reorg to “Centralize ops,” both of which seem brilliant at the time they’re done, but rarely solve the root cause issues of the org not working well together. Needless to say, being laid off creates some space for critical reflection about our work, our economy, and the structure around employment created by our cultures, governments, societal pressures on the company, and competition. I’ve been thinking a lot about how different companies execute(d) their layoffs when it comes time to do a “necessary” restructure. TL;DR, If perfect layoff execution exists, I have yet to see it. Still, after nearly 10 years working in Tech, from early-phase startup to megacorp, nearly all of which have had at least one layoff during my tenure, there are some elements that soften the blow for those laid off, and for those left behind. 1. Severance (Obviously.). But not just “a severance,” a severance that considers the market conditions and competition for how long it realistically takes to find a job. Reports are coming in around 6-12 months of job searching with no dice, even for extremely strong candidates applying in their fields. Unemployment (if you can get it) doesn’t always cut it, especially for families with children, and caretakers. 2. Clues. Even though it can create anxiety, knowing a layoff is coming so people can begin their preparations and avoid making huge decisions a couple of months in advance. 3. At least 1-2 days’ notice. It may create data risk for the company, but it also creates space to grieve, share contact information and appreciation, get important documents like paystubs, 401ks, insurance, and more, plus share important materials with those left behind who have to keep that company afloat. 4. Timing and benefit extension. In my anecdotal experience, layoffs often happen at the end of the month, which can mean that for the laid-off, insurance is cut off mere days after the axe falls. People who have scheduled major medical procedures have to do so weeks or months in advance, and a sudden loss of insurance can devastate those plans. Even with COBRA (expensive) it could add extra hoops. 5. Empathy and follow-up. Remembering that the people leaving your company are people, who have dumped their heart and soul into their jobs. Give them resources and grounded communications that minimize the bulls*** and maximize context. I don’t know if everyone was treated equally in the Tiktok layoffs, but my heart goes out to all those like me who are now back on the job hunt in an economy that is unfriendly to folks coming out of employment, especially at bar-raising companies. Have more to add? Leave it here! 🔽 ❤️

I deeply empathize with people who get blindsided with a layoff notice. But as someone who has been through many of these, on both sides, I’m begging people to heed one small piece of advice. Please resist the urge to take this personally. For your own sake. The tech sector has been a wild party for most of the two decades since the dot com bust, but right now we’re feeling the hangover.  #TechLayoffs were brutal in Q1 (150k+ laid off) but had steadily declined since then – until this month.  In October, per Layoffs.fyi we’ve seen a 37% rebound in layoffs (and that’s with another week left to go). Any glimpse at economic indicators will show you that we’re not out of the woods. Far from it. I’m one of the 410,219 people in tech who has gotten a pink slip since 2022. So here are a few things to keep in mind: 1️⃣ Consider the ‘why’ behind a #MassLayoff. This is about cash flow, and interest rates, and unrealized demand projections. What slide is up on the screen when the board approves a layoff? It’s a line graph or a table of numbers. Not your mugshot. With all the expense and legal risk of a layoff, the PR exposure, the culture damage and all the rest, they’re just not thinking about individual people. It's bigger than you. They’re cutting costs to save the business. 2️⃣ The ones delivering the bad news: they’re people too. Remember that for a vast majority of them, calling you into this meeting is the absolute rock-bottom of their own job experience. If they seem disingenuous or uncaring, consider that they are navigating their own complex feelings. And often they are being watched closely by HR and Legal, to make sure they stay on script and don’t expose the company to more risk. 3️⃣ Vendettas in the workplace are the exception, not the rule. We’ve all seen politics get ugly, and it’s tempting to cast ourselves as the lead actor in a docudrama. But almost always, this drama is conjured out of thin air – and for those ultra-rare exceptions where the person is taking pleasure in your demise, rest easy. That person is likely part of a work culture that enables this sort of bad behavior, and just did you a favor by releasing you. You gambled on that company, and some bets don’t pay off. It happens to all of us. Now you’re moving on to a healthier environment, and you just got a head start. Every time I gave the bad news, I felt like absolute 💩. And every time I received the bad news, it turned into a major positive for me. 🚀 Without exception! To all those #opentowork: Take a breath. If you got severance pay, carve out a little sum and treat yourself. Take care of your heart and #mentalhealth. Take some lessons from this experience and banish the rest to your subconscious. The next act of your career will bring good things!

It's been 6+ months since my role at Meta was impacted by layoffs. Throughout this time I've been able to grieve (still doing this to be honest), reflect on my experiences and learnings, start a consulting practice, and reconnect with individuals I've crossed paths with in past endeavors. And I am pumped to share that I have *FINALLY* accepted an offer..more on this shortly =) The experience has been stressful, frustrating, exhausting, and extremely humbling. For those of you out there that are going through the same thing as me, here are some tips that helped me ultimately land something. 1. Market yourself - Update your LI profile to reflect your resume, including RESULTS. With many positions having hundreds (or thousands 😮) of applicants within a couple of days, more and more employers are relying on proactive search to find talent. Make a recruiter or sourcer WANT to reach out to you. 2. Engage - This platform is so amazing and is one where engagement and collaboration with peers is strongly encouraged and rewarded. Go outside of your comfort zone to initiate thought and conversation with people in your domain. This will get you noticed, and the more consistent you are, the more likely it is that people will reach out to you. 3. Follow industry experts - From people who share related job openings (which I plan on doing to help pay it forward), to individuals who will keep it real and provide unfiltered feedback to help you navigate unemployment and your search (S/O Richard King). 4. Leverage your network - Let people know you are looking, what you are looking for, and how they may be able to help you. Not everyone will respond but the ones that do could provide the insights and introductions you need to get things moving. Here are a few other people I suggest following or connecting with (especially in the TA world) that have provided valuable insights to me during my search. - Joie Karcher - Jan Tegze - Haley ONeill - Martel H. - David Marr, CIR, CSSR - Matt Hearnden I know how difficult it is right now, but there is light at the end of the tunnel. Keep grinding! #AlwaysBeNetworking #layoffs #jobsearch -JP