The tech industry has been a dependable market, but it's looking like the future could be staring at a downward spiral in the near future.
As gas prices and transportation costs grow nationwide, the average family is experiencing unparalleled financial burdens, unlike in previous years. But American citizens aren’t the only ones experiencing the pressure of a collapsing economy. Humungous tech companies like Apple and Microsoft plummet in the stock market while geopolitical turmoil and supply chain interruptions continue. Once sturdy in its financial placement, the tech industry is now suffering from many compounding issues that threaten the marketplace entirely.
When the pandemic started, certain tech giants like Apple and Amazon felt an abundance of traffic. People were purchasing electronics at a record-high rate, with many transforming their homes into viable offices. Many embarked on superfluous spending due to essential government checks, which continued to stimulate the economy despite Americans losing their jobs. As the pandemic wore on, the tech industry started to experience a downfall from its 2020 apex. Not only did people not need to spend in bulk anymore, but a spike in prices this year has made it difficult for average citizens to buy electronics once deemed affordable.
Many companies in the tech industry were excessively hiring during their pandemic-market boom. As people have become more frugal about their spending, companies have mainly suffered, which has been reflected in their stock decreases. Netflix, Uber, Twitter, and Apple have all seen startling drops in their stock share prices, leading to many worrying about the industry’s general prosperity. Both Twitter and Tesla recently froze their hiring process and laid off hundreds of workers. Other companies have indicated that they will entirely slow down or stop hiring for their salaried positions.
The depressing reality of the tech industry has a complicated outcome for engineers looking for work. Though engineering is still a profitable job in this country, the recent reduction in hiring across tech companies is worrisome to many post-grads with computer degrees. It complicates the procuring of high-wage tech jobs and offers little bargain room for employees wanting to negotiate better pay or benefits. Since there’s less worker demand, companies could get away with underpaying their employees who are in desperate need of income.
Over the last decade, the tech industry went through an unprecedented hiring boom. As streaming services like Netflix and Hulu got increasingly popular, new jobs for social media and streaming companies grew exponentially. The pandemic only increased traffic for these websites, with new streaming services popping up to accommodate the increase in viewership. But since late 2021, an inflation bump has made life a lot harder for Americans nationwide, with many opting out of excessive or hedonistic spending. The shift in demand has changed many companies’ hiring processes, with massive lay-offs and more rigid job requirements plaguing the industry.
Lower-ranked engineers and tech workers feel immense pressure from the declining tech industry. Some CEOs have gone on record stating that they need more vigilance and dedication from their workers to maintain their positions. Facebook’s Mark Zuckerberg recently noted at his company Q&A that he wanted to instill “aggressive goals” for his employees, needing to turn up the heat on his workers to see who was willing to work hard enough to retain their jobs.