Tech

Tech Layoffs May Alleviate IT Recruitment Issues

Corporate technology recruiters say there is an opportunity to fill vacancies as temporary dismissals and job freezes across the technology sector ease the historically tight market for tech workers.

Layoffs across the tech industry occurred last month due to falling stock prices, the collapse of cryptocurrencies, and fears of a recession. on tuesday,

Coinbase Global Ltd.

Said Reduced 1,100 employees from employeesThe latest example of a cooldown, a reduction of about 18% in staff.

last month,

Microsoft Ltd.

Said Slow employment in that software group;

Meta platform Ltd.

declaration Freezing recruitment Some teams and small social media rivals

twitter Ltd.

When

snap Ltd.

A similar hit-the-brake memo followed.

Some of the chief information officers who are tired of relentless recruitment activities See the opportunity..

Katrina Agusti, CIO of Carhartt Inc, a workwear brand based in Dearborn, Michigan, said:

When Agusti took on the role of CIO in March, she aimed to prioritize hiring technicians. When tech stocks began to unravel in May, she said she was watching carefully in anticipation of a layoff that could bring new candidates to the recruitment pool.

Carhartt hasn’t seen the momentum for that additional recruitment yet, but Agusti said he expects a long-term influx of new candidates for the tech job.

Even a small break in the IT talent war has long been awaited. Over the past few years, CIO has stepped up its recruiting efforts. Salary increase And promoted the culture of their company Attract the talent needed for critical digital transformation efforts.. Still, the number of technical job listings is high and the shortage of candidates continues.

Kroger Ltd.

The company’s CIO, Yael Costet, said he was also looking for workers, but saw more applicants coming through the door than a year ago. But it’s hard to say whether it’s the result of other companies withdrawing hires or the result of Kroger’s own enhanced efforts in this area, he said.

According to Cosset, grocery stores are expanding partnerships with universities, expanding employment opportunities, and training store clerks to play a technical role in areas such as cybersecurity.

“There is still a significant shortage of talent,” he said, but added that the company is “on track” in hiring.

Last month, US employers in all sectors hired an estimated 2,000 new technicians after cutting about 215,000 technician jobs in April, according to IT industry group CompTIA. Despite rising hiring in May, the overall unemployment rate for US IT workers remained almost unchanged from 1.7% in January to 2.1%, according to the group.

Coinbase Global from Nasdaq Jumbotron in Times Square last year. This week, the company announced that it would dismiss 18% of its staff.


Photo:

Shannon Stapleton / Reuters

With the decline in tech stocks and cryptocurrencies, some tech-heavy employers have reduced their staff. In addition to Coinbase, two other prominent crypto companies, Crypto.com and BlockFi, said they would let go of people this week.

“Recent layoffs in the crypto market will provide some relief for companies in need of engineers and other technicians,” said Martha Heller, CEO of recruiting firm HellerSearchAssociates. But overall, cryptocurrency layoffs “represent a decline in buckets,” she added.

According to CompTIA, in May, US employers placed ads for more than 620,000 tech jobs. This is an increase of about 50% compared to the same month in 2021. The group’s principal researcher, Tim Herbert, said job freezes and layoffs between sectors were offset by other companies trying to scoop up newly available workers.

“The data show examples of companies that are believed to be withdrawing, increasing recruitment and maintaining the status quo,” says Herbert.

Keegan Banks, Senior Vice President of Client Delivery at recruiting firm Harvey Nash USA, said the market for high-tech workers remains tight. Most of her clients still want to get an IT job, she said.

John Marquee, managing director of client services at recruitment and advisory firm AMS, said employers may have posted job ads aimed at attracting dismissed technical workers. As mentioned, that does not mean that qualified workers are in a hurry to apply.

“People are taking time between roles before returning to the job market,” Marquee said.

Write to Isabelle Bousquette at Isabelle.Bousquette@wsj.com And in Angus Roten angus.loten@wsj.com

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Tech Layoffs May Alleviate IT Recruitment Issues

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