Layoffs May Only Be A Stepping Stone To Something New & Exciting, Know How

Since the middle of 2022, there has been a lot of talk about layoffs in the labour market. Many businesses, from large corporations to start-ups, have announced hiring freezes, pay reductions, and employee layoffs. The trend has been extremely difficult for workers in all positions. Even the largest corporations now seem to be hinting that this year's round of layoffs may include mid-managerial positions.

The trend just isn¡¯t stopping. In order to reduce costs, FedEx announced earlier this month that it would give pink slips to more than 10% of its directors and officers. CEO Mark Zuckerberg of Facebook's parent company, Meta, also made a suggestion about eliminating mid-management positions. Zuckerberg referred to 2023 as the "year of efficiency" and stated that management is focused on building a stronger and more agile organisation in Meta's fourth quarter earnings announcement.

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In today¡¯s world, the impact of global layoffs is immense. Social media timelines have been flooded with tales of employees being fired over the past few weeks. Around 48,615 people from 14 companies worldwide lost their jobs this month alone, according to layofftracker.com, with Meta leading the pack with over 11,000 layoffs.

As per reports, industry insiders claim that between 30 and 40 percent of those laid off are Indian IT professionals, many of whom are in possession of H-1B and L1 visas. A non-immigrant visa called the H-1B allows American businesses to hire foreign nationals for specialised jobs that call for theoretical or technical expertise. It is essential to the hiring of tens of thousands of workers each year from nations like China and India by technology companies. Many of them are currently looking for ways to stay in the country for the allotted few months that they receive under these foreign work visas after losing their jobs.

According to a report by inc42.com, 67 startups in India, including unicorns Chargebee, Cars24 LEAD, Ola, OYO, Meesho, MPL, Innovaccer, and Udaan, have fired 20,484 people so far.

While this may sound like the end of India's startup ecosystem, entrepreneurs and venture capitalists see it as a window of opportunity for the nation's enormous talent, which has been struggling with unemployment issues for the past two years. Of India's 435 million workers in 2021¨C2022, 33 million (or 7.5%) were unemployed at the time.

But can the world after layoffs be different? What will change? Read more to find out.

People will search for stable businesses in the job market

Mumbai-based Navi NovaVente, a bootstrapped business that specialises in B2B technology sales, was founded by Ronak Rajan. He published a post on LinkedIn about three months ago asking young and aspiring inside sales and business development executives to apply for the company's Asia, Europe, and US operations, as news of tech firms cutting staff began to circulate. "Being bootstrapped and profitable means that we can either hire quickly or slowly without having an adverse effect on the business as a whole. However, this global recession has unintentionally benefited us," he claimed in a Mid-day report.

He further stated, "At first, the biggest companies were hiring against me, so I wouldn't get enough response to openings in the company on social media. Now, a lot of candidates are drawn to us [because of the large talent pool available]. Although it's happening now, I wouldn't consider my business to be big enough for a TCS employee to squeeze through. More than anything else, people are searching for a stable business."

A boon for start-ups?

While some startups are already utilising the larger hiring pool, others are still feeling the effects of the tech downturn and cutting headcount themselves. An engineer, marketer, designer, or other professional used to the benefits and security provided at a large company may feel more risky working for a startup.

However, there are benefits, such as the chance to obtain equity in a startup in its early stages and more control over culture, product, and hiring.

It's one thing to join a startup. The beginning is another. Less certain is whether the tech industry layoffs will lead to a fresh flurry of entrepreneurial activity. In spite of the layoffs, Madrona Venture Labs and Pioneer Square Labs leaders in Seattle report seeing an increase in applications and interest from prospective founders.

Since their inception a few years ago, a key component of their strategy has been to entice talent from more established tech firms and reduce the risk of joining a startup by offering support. With the recent layoffs, that tactic might succeed.

Other industries flourish?

The CEOs noted that growth has indeed slowed from pandemic levels at the tech companies. Analysts predict that the five major tech firms¡ªincluding Apple¡ªwill report dismal profits for the three months beginning in October 2022. According to a Reuters analysis, Amazon is expected to report earnings that were down 38% and revenue that increased at the slowest rate in more than 22 years.

Meanwhile, Meta's profits might plunge sharply by 42%. But despite their size and profitability, these large tech companies are still very successful. Even so, Microsoft reported a profit of over $16 billion for the quarter that ended in December 2022, up from a profit of about $11.6 billion for the comparable period in 2019.

Notably, despite job losses in the tech sector, data from the labour department show that overall U.S. job growth is still strong and that fewer Americans are submitting new claims for unemployment benefits. The tech layoffs are not a "bellwether of the entire labour market," economist Jennifer Lee told Bloomberg. Analysts note that, in contrast to larger industries that are still hiring, technology companies only account for about 2% of all employment in the nation. Despite the Fed's aggressive efforts to reduce inflation, the labour market has held up well.

Digital skills to the front

No matter your position or line of work, you must adjust to the ongoing changes at your workplace. To advance your career, keep up with changes in the workplace, and improve your professional opportunities, you must constantly learn new job skills. The top skills your portfolio needs to have in 2023 should be digitally oriented.

Digital skills are becoming increasingly important in the future because they are essential for succeeding in today's digital age. As technology continues to advance and become more prevalent in all aspects of life, the ability to effectively use and leverage digital tools and technologies has become critical for personal and professional success.

The world is becoming increasingly digital, and as a result, the digital economy is growing at an unprecedented rate. This growth is creating new job opportunities and making many traditional jobs more technology-dependent, requiring individuals to have digital skills to succeed.

The COVID-19 pandemic has accelerated the shift towards digital technologies in all aspects of life, from remote work and online education to e-commerce and telemedicine. This has made it even more critical for individuals to have digital skills to participate in and benefit from these new opportunities.

As more and more tasks become automated, individuals with digital skills will be better positioned to navigate and take advantage of this new reality. Digital skills like coding and data analysis will be in high demand as organisations look for ways to automate their operations.

The importance of digital skills in the future cannot be overstated. Individuals who possess these skills will have a significant advantage in the job market and will be better positioned to navigate the increasingly digital world we live in.

Soft skills will be equally important

Soft skills are intangible and challenging to measure in contrast to hard skills, which can be demonstrated and quantified. Analytical reasoning, oral and written communication, and leadership are a few examples of soft skills.

Technical skills like reading comprehension and math aren't valued as highly as soft skills, according to research from the Society for Human Resource Management. This means that you have to bring more to the table than, for example, strong sales numbers, coding languages, or test scores.

In essence, even if you are the best at what you do, your chances of career success are limited if your soft skills are lacking. Continue reading to find out which soft skills are essential to possess and how you can develop them. During times of layoffs, soft skills can be just as important as technical skills in helping individuals navigate the challenging job market. Soft skills refer to a person's ability to communicate, collaborate, and interact effectively with others, and they are highly valued by employers in all industries.

Strong communication and interpersonal skills can help individuals build and maintain a strong professional network. This network can provide support, information, and potential job leads during times of layoffs. Soft skills such as empathy and emotional intelligence can help individuals navigate the emotional challenges of layoffs. These skills can help individuals understand and manage their own emotions, as well as support and empathise with others who may also be going through a difficult time.

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