The world’s biggest tech companies, including Alphabet Inc. and Meta, which own Google, YouTube, and Facebook, have reported significant declines in profits. But, with a little adaptability, tech talent remains in demand.
Unfortunately, the lackluster investments in technology will diminish the US’s economic growth. Yet, the outlook is favorable for tech talent working in these companies.
New tech business reports point to the following key trends:
- Stock prices and profits will continue to drop for tech companies
- People will invest more in necessities
- Tech talent will need to adapt
Those in the top roles in the tech industry will need to adapt to different fields and projects. Moreover, the quickly changing market might push some fields out of favor. Tech talent will need to invest in upskilling to survive layoffs.
Tech Companies Fall Further in Q4
Although some call tech companies’ reports for 2022 dire or even apocalyptic, the numbers aren’t that bad. For example, Microsoft and Alphabet made more than USD31 billion in profits during Q3 2022 alone.
Even with disappointing sales on their flagship product, the iPhone 14, Apple still made over USD20Bn in Q3 of this year. That’s an increase over the comparable quarter in 2021, where they’d reported USD19.7 billion.
It is not the activity or profits that have decreased. Rather, it’s the profit growth rate. The slowdown in profit growth will concern investors and shareholders, but it will not affect customers or salaried employees.
The odds are that the drop in tech stock value and profits will continue, especially with the recession ahead. The drop will continue at least until investors regain confidence in tech companies.
Investor Shift to Basics and Necessities
Investors are shifting their focus from entertainment and tech to products like food, housing, and utilities. Most might mistakenly believe those industries don’t require tech talent, but that can’t be further from the truth.
For one, farmers and construction workers rely on weather and ordering apps to do their jobs. Secondly, these fields thrive on the help of tech experts.
Machines are now an integral part of farming. In the upcoming months, those who know how to manage and maintain software and equipment in food production facilities can expect to earn top dollar.
Additionally, tech workers who aren’t against working rural jobs will enjoy reduced living costs and a sizable income increase.
Further, tech talent that does adapt will gain from the increasing demand for tech talent in Africa and Southeast Asia. This demand, coupled with the investments, will produce more agile talent than in the West.
Profits Are Dwindling but Remain High
Tech companies and giants like Amazon, Microsoft, Apple, and Google, are still massively profitable. The growth they experienced during the pandemic is still going strong. In addition, customers who are used to their services remain loyal.
The drop in tech stock prices and the Bank of America’s downgrading of Apple shares are alarming signs for investors. But, despite that, tech companies aren’t losing any business.
Tech giants will cut unprofitable operations to appease their shareholders. The recent layoffs in tech show their resolve to trim overheads.
However, the people involved in core business components are safe from layoffs. Microsoft is currently looking to fill almost 1,000 positions in the US alone. According to Glassdoor, data technicians and security analysts rank among the most sought-after talents. An entry-level employee in those fields can expect to make USD60,000 annually.
Specialists, especially in cybersecurity, can expect annual salaries between USD120,000 and USD200,000.
Lowering Productivity in the US
One reason so many companies are seeing a reduction in growth is the decrease in productivity. This dip in employees’ productivity is what some call quiet quitting. However, in tech, employees are now working more hours.
It’s common for employees to work more than one full-time job simultaneously. Tech companies are calling this overemployment. It’s estimated that roughly 7.5 million Americans now have more than one full-time job in tech.
But, for companies, productivity has seemingly dropped. Employees now only work their negotiated hours and spare no time for extra work, free meetings, etc.
Top Tech Talent Is Always in Demand
Current projections predict that entry-level positions might fill up in the following months. With fewer new projects, demand for proven talent will rise. For some, that means investing in training and courses before landing their first tech industry job.
On the other hand, demand for top tech talent will keep rising. Some fields, like cybersecurity and cloud computing, are facing an ever-increasing gap between the tech talent’s demand and supply. Even with startups failing, cybersecurity specialists can switch jobs within a few days. Better still, tech talent can work from anywhere in the world.