When Microsoft and Google Are the Latest Tech Giants to Hit the Brakes on Hiring
When Microsoft and Google decide to slow down their hiring, you know that the business landscape has changed in some fundamental way—and things aren’t likely to get better any time soon. Last week, two of the world’s biggest tech companies announced they are going to slow down their hiring. Google, who had been growing at more than 20% year over year, plans to scale back on hiring by 10%. And Microsoft is making cuts to avoid overhiring—after ramping up hiring by 50% over the last year, it’s cutting 25,000 positions from its workforce.
The backdrop: slowing growth
The global economy is slowing down, and that's starting to hit the tech sector. After years of breakneck growth, tech giants like Microsoft and Google are starting to feel the effects. They're both cutting back on hiring, and they're not alone. Other big names in tech, like Amazon, Facebook, and IBM, are also feeling the effects of the slowdown. But it doesn't stop there: even smaller companies like Netflix, which was growing by leaps and bounds just a few months ago, have started to slow down. Netflix has been extremely aggressive, says Jordan Elkind, an analyst at Raymond James. They've been rapidly increasing their content spend. That means they need more staff to keep up with demand. But now they're pulling back on spending — including staff headcount — and this will likely lead to layoffs in the coming months. Netflix needs content creators as much as anyone else, he says. It would be prudent for them to start scaling back. As Elkind points out, Netflix made a huge bet. Now they're paying the price. What does this mean for tech workers? In the short term, not too much. Businesses still need software developers and product managers. But if these cuts continue over time, one trend becomes clear: you'll want to learn how to code sooner rather than later if you want a job in Silicon Valley. Coding skills are becoming increasingly necessary across all sectors of tech; the question is no longer whether or not coding will play a role in your career but when and where. And while computer science classes are typically harder to come by at universities than other fields, online options are emerging. Coursera and edX offer a number of courses geared towards teaching people about programming. And then there's Codecademy, which offers free web tutorials designed to teach JavaScript, HTML/CSS, Python and Ruby through games. There's also Treehouse (where most courses cost $25 per month) or Codeacademy (which costs $29 per month). All three sites are great ways to get started in coding, and there's never been a better time. We live in an era where technology is transforming everything we do—and for those who know how to harness its power, opportunities abound. So what can you do to stay ahead of the curve? The first step is simple: Learn how to code. Whether you're looking for a new job, trying to switch careers, or just interested in expanding your professional knowledge, learning how to code should be near the top of your list. Computer science jobs are projected to grow 17% by 2020, compared with 10% average growth rate for all occupations. Furthermore, recent studies show that businesses actually prefer candidates who can demonstrate proficiency in coding. More and more employers require candidates with some level of expertise in computer languages such as Java or Javascript before considering any other qualification—including past experience or education. But if you're not a programmer by trade, fear not. You can learn how to code in your spare time with the help of resources like Coursera and edX. These resources are very similar to MOOCs or Massive Open Online Courses, which provide access to college-level courses for free. With the right instruction, you could be working as a developer within months. And if you're not a developer by trade, worry not. Programming is a learnable skill, and there are plenty of resources to help you do just that. For the computer science coursework, there's Coursera and edX. And for practical lessons in coding, there's Codecademy or Treehouse (both of which can be used for free!) And if you're not a developer by trade, worry not. Programming is a learnable skill, and there are plenty of resources to help you do just that. For the computer science coursework, there's Coursera and edX. And for practical lessons in coding, there's Codecademy or Treehouse (both of which can be used for free!) And if you're not a developer by trade, worry not. Computer science jobs are projected to grow 17% by 2020, compared with 10% average growth rate for all occupations. Furthermore, recent studies show that businesses actually prefer candidates who can demonstrate proficiency in coding. More and more employers require candidates with some level of expertise in computer languages such as Java or Javascript before considering any other qualification—including past experience or education. But if you're not a programmer by trade, fear not. You can learn how to code in your spare time with the help of resources like Coursera and edX. These resources are very similar to MOOCs or Massive Open Online Courses, which provide access to college-level courses for free. With the right instruction, you could be working as a developer within months. And if you're not a developer by trade, worry not. Programming is a learnable skill, and there are plenty of resources to help you do just that. For the computer science coursework, there's Coursera and edX. And for practical lessons in coding, there's Codecademy or Treehouse (both of which can be used for free!)
3 reasons why hiring is slowing down
1. The first reason is that there are simply fewer jobs available. With the economy slowly improving, companies are starting to feel more confident about their bottom line and are less likely to hire new employees.
2. The second reason is that many companies are now turning to contractors and temporary workers instead of full-time employees. This can be a cheaper option for companies, and it also allows them to be more flexible with their workforce.
3. The third reason is that many qualified candidates are already employed and are not actively looking for new jobs. This means that companies have to work harder to find and attract top talent. To do this, they're making themselves appealing to potential hires by providing good salaries and benefits packages, as well as opportunities for career advancement. For example, General Electric has increased its employee base in the U.S. by 30% since 2010. And AT&T has recently announced plans to invest $1 billion in its workforce over the next three years while offering generous bonuses and pay raises across the board. It seems like hiring is slowing down because of three main reasons: 1) Fewer jobs are available; 2) Companies are increasingly turning to contract or temporary labor; 3) Many qualified candidates who would typically look for new employment are already employed elsewhere. If a company wants to attract these people, they'll need to provide competitive salary and benefits packages, and opportunities for advancement. For instance, GE has seen an increase in its American workforce of 30% since 2010; meanwhile AT&T is investing $1 billion into its workforce over the next three years by offering both salary increases and bonuses for existing employees. These initiatives seem geared towards luring quality employees away from other companies - so I'm wondering if the competition for skilled workers may just be driving up salaries even higher?
Microsoft CEO Satya Nadella said he had been impressed with LinkedIn's engineering prowess when he toured LinkedIn's headquarters last year. We were very impressed with what we saw, Nadella told CNBC. And it was part of the thought process. He added that Microsoft still needs more cloud engineers, data scientists and sales professionals.
Google CFO Ruth Porat cited a changing headwinds for why she cut the number of new hires in half at Google for 2016 compared to 2015. The macroeconomic environment does present some challenges, Porat told investors during Alphabet's quarterly earnings call on Thursday. However, we continue to take proactive steps to help mitigate these risks.
Google's HR boss Laszlo Bock said there will always be ups and downs in the industry, but he expects the long-term trend to remain strong.
This could result in great opportunities for those who are looking for work. But for companies trying to staff up, it might make things a little more difficult.
The takeaway here is that the unemployment rate isn't everything. You might think you're swimming in job offers but actually be out of luck if your skill set doesn't match current market demands. For example, the skills most in demand right now are cloud computing, big data analytics, and internet marketing.
Other skills that are in high demand include web development and design, healthcare IT specialists, security experts, virtual assistants, project managers and creative writers.
If you don't have any of these skills, it's a good idea to keep brushing up on your computer literacy by learning new programming languages or taking MOOC courses to build a new skill set.
Remember that many jobs require hard work to get noticed. Keep networking with friends and professional contacts through social media sites like LinkedIn and attend events related to the type of work you're looking for. Be sure to complete your profile, which includes a summary of your skills and work experience.
This is the type of information recruiters search for. When they find someone with the necessary qualifications, they might invite that person to apply for a position online or in person.
The next step is getting interviewed by the recruiter and their team of senior-level managers. This stage is important because it determines whether you're qualified enough to move on to the next stage in the hiring process. Be sure to come prepared with questions about the company, as well as details about your accomplishments and contributions on previous projects. This will show that you have done your research before coming in for an interview. And finally, the offer. This is where you can negotiate your salary and benefits package to get the best possible deal.
You may want to consider other factors, such as how far away the company's office is from your home and how much time off you'll receive each year.
Remember that this offer could determine how successful your career in tech will be so it's worth taking a bit of time to figure out the best offer for you!
Regardless, now might just be a great time to enter into an industry that has plenty of opportunities but may not have enough people with all the right skills.
What this means for tech workers
The recent news that Microsoft and Google are both slowing down their hiring efforts is yet another sign that the tech industry may be headed for a slowdown. This is bad news for tech workers, who have already seen their job prospects diminish in recent years. The good news is that there are still plenty of opportunities for those with the right skillset. So if you're looking to get into the tech industry, don't despair! There are still plenty of companies out there that are hiring. If you're thinking about making a move from your current role, now might be the time to do it. Remember, though: many jobs require special training or degrees so make sure you know what your target company needs before applying. And keep in mind that while this downturn could make it more difficult to find work, it could also provide an opportunity for experienced developers or other skilled professionals to snag top-level positions at some of the most successful tech companies around! But just like everything else in life, it's not all good news. With these layoffs comes increased competition for the few openings that exist. So if you're planning to switch careers and enter the tech field, now would be a great time to start up those coding classes or take another certification course. Not only will this help you land a position sooner, but getting certified will give you a leg up over other applicants vying for the same position. Another advantage of starting early? If this trend continues and our economy slows down even further, these certifications will become even more valuable! Keep an eye on trending topics like tech and hiring online as well as in your local paper to stay up-to-date on how things are changing. For instance, did you know that Amazon recently announced plans to hire 100,000 people by 2020? Who knows--maybe next year they'll announce they're hiring even more! What does this mean for tech workers? As long as you have the appropriate skills, opportunities abound. Here are three steps to finding a new career in technology:
1) Do your research. Look into whether or not the company has any required education or experience requirements. You want to be realistic about whether or not you qualify without being too ambitious; 2) Make connections. Connecting with friends and family can help you gain access to new networks, which will increase your chances of finding someone who can refer you for a position; 3) Prepare yourself. Don't wait until something happens to prepare yourself! It's never too soon (or too late!) to update your resume, brush up on interview techniques, and read helpful articles such as this one. Best of luck! Microsoft and Google are the latest tech giants to hit the brakes on hiring, and this is a warning for employees in the industry. These are major employers that are trying to control costs. With little growth in revenue, and IT projects sitting idle on company balance sheets, the tech sector seems set for a decline. This means that qualified tech professionals will be forced to look elsewhere for employment. Fortunately, companies large and small are always hiring. According to the Bureau of Labor Statistics, there are 11.6 million open computing-related jobs in the United States. The key is to find a company that offers a competitive salary and benefits, and aligns with your values. A good place to start is by identifying companies you'd like to work for. From there, reach out through LinkedIn or email with a short introduction letter and follow up with a phone call. This will let the company know you're interested in working for them, but more importantly it gives them the chance to decide if they're interested in hiring you! There are also many smaller startups out there looking for top talent. They often offer great perks that larger corporations don't have time or resources to provide: free lunches, catered dinners, gym memberships, massages--you name it! Whatever your needs may be, search around and find a company where you'll thrive professionally and personally.
Possible long-term effects
The overall effect of this news is likely to be negative for the tech industry. For one, it could further fuel the already growing anti-tech sentiment among the general public. Secondly, it could lead to more regulation and scrutiny of the tech industry, which could hamper innovation. Finally, it could also dissuade top talent from entering the field, opting instead for more stable industries. In the short term, however, this news may not have much impact as both companies are still hiring at a rapid pace. More broadly, this slowdown in hiring only underscores the changing face of Silicon Valley. Increasingly venture capital firms are investing in sectors other than just technology and startups; there has been an influx of investments in biotech, healthcare and financial technology (FinTech). Furthermore, those within Silicon Valley say that the bigger issue is not about how many people work for these companies but about their employees’ attitudes toward diversity and inclusion. A recent study by researchers at the University of California, Santa Barbara found that over 50% of respondents felt overworked, and almost two thirds reported feeling stressed because they were juggling multiple projects. As such, some experts suggest that rather than stepping back on hiring, these companies should focus more on addressing these issues internally. I would encourage leaders to spend less time recruiting and more time understanding what type of environment they're creating for their workforce, says Joan Williams, director of the Center for WorkLife Law at UC Hastings College of Law. If you make your workplace toxic with too much demand without any kind of help in order to manage that demand, then you will lose your most talented workers - no matter how big your pool is. And once you lose them, it's really hard to get them back. You can't replace somebody who knows all of your secrets or knows all the institutional knowledge inside an organization. It's going to take a long time to find somebody with those skillsets, she said. There's something deeply troubling about taking months and months out of someone's life where they cannot find productive work during that period of time while they look for another job. That becomes magnified when we think about how our society needs new blood, fresh ideas and new perspectives - particularly in the wake of the election. That's why it was so troubling when so many CEOs refused to meet with Trump following his election victory last November. On November 14th, 100 CEOs took part in a daylong summit focused on investment opportunities at Trump Tower in New York City. But following Trump's inauguration last month, hundreds declined invitations from his transition team to participate in strategic policy discussions. Some of the notable exceptions include IBM, Apple and Facebook. The day after Trump's win, IBM CEO Ginni Rometty wrote an open letter to her company's 380,000 employees pledging to collaborate with the incoming administration. This shows that many companies are trying to adopt a more nuanced stance on how they deal with Trump's administration. Nonetheless, these tech giants' shift in hiring plans could indicate that Silicon Valley is starting to shift its focus away from Trump and onto its own future. Google is attempting to diversify its revenue sources and away from advertising. Microsoft is transitioning from being a provider of software for personal computers to a broader provider of cloud services. Both companies are clearly making an effort to diversify their operations in the hopes that this will buffer them against future market downturns, layoffs and changes in technology.
Posts
