In January 2023 over 64,624 employees from 170 US tech companies were laid-off according to data tracked by Layoffs.fyi. At the 20 companies where the largest layoffs occurred, the median made up 7% of the workforce, reverberating in every corner of an organization.
The Tech Industry Moment of Reckoning
In some respects, the impact of a workforce reduction is the same regardless of your company or industry; remaining employees must find a way to absorb the additional workload while worrying if they are next, managers worry about their best employees jumping ship.
Still, some aspects are unique to the tech sector. In this industry recruitment has been at a fever pitch since it came into being almost two decades ago. With tech workers being ceaselessly courted from the time they were students, new jobs were theirs for the taking, and unlike the majority of 21st century American workers, many of them have never considered a layoff—or unemployment—a serious possibility.
How Tech Companies Can Support Employees
Amid these types of layoffs, employees tend to feel insecure in their jobs and report higher levels of stress. To counter those sentiments, companies can show their commitment and support for employees with a community management program, which can foster a culture of wellness and provide a sense of community at this critical time. Community management inspires innovation and collaboration, a key enabler to motivate remote employees to come back to the office or influence workday behavior. It keeps your employees connected, happy and engaged.
Additionally, companies can support a more balanced work-life, reduce stress, and provide the most valuable benefit – more time. By providing concierge services to your employees, companies can address the challenges of the recent transformation and quickly invest in solutions that can allow them to retain their workforce. It can serve as the antidote to the layoffs that can cause a talent leakage in an organization.
In order to remain competitive, companies need to provide support and engagement to those who remain after the layoff—they will be the ones that lead your organization to future success.