I believe that you are aware of the mass layoffs that are happening in project-based IT/software companies. If you are worried about the mass layoffs, then this post is for you. Of course, I do see people in fear, panic, and depression after the layoff announcement from the CEO's of respective companies. Yes, I'm too surprised to see large numbers, and that's why I thought of writing this post for you. This post intends to provide knowledge about mass layoffs and to direct you towards the next level in your work life.
Before proceeding, I do have a request for you. Please don't watch any videos related to these mass layoffs on the internet. It's all one-sided reviews, even some pieces of information are wrong. So, please do hold your nerves.
Is cost-cutting the only reason for mass layoffs?
NO. Everybody believes mass layoffs are planned only to cut down the operating cost of the company, but that is not the fact. Though there are many other reasons, let me expose to you one serious issue.
Usually, the employee headcount of many project-based IT/software companies is in lakhs and lakhs, which is humongous when compared to other industries or sectors. I'm not going to say this is the problem for mass layoffs. But, I have questions for you before exposing the problem.
Do you know Facebook acquired WhatsApp for $16 billion in 2014? I hope many of you know this. There is one interesting fact which many of you don't know. WhatsApp had only 55 employees during the time of its acquisition. You can surf the internet to get more information about this matter.
How can a company of only 55 employees close such a big deal with Facebook? Have you ever thought about this? If not before, think of it now. What it proves is, a successful company doesn't require a large number of employees, only quality talent and culture are needed. That's why they are years and miles ahead of our current IT/software sector.
I hope you understood that cost-cutting is not the only reason for the mass layoffs. Also, it is not the right time to blame IT/software companies. Here, I'm trying my best to make you understand the problem other than just blaming the company.
The IT/software sector failed to build people with diversified skills
The problem with the IT/software sector is work culture. A company cannot produce people with diversified skills if they don't have an exceptional work culture.
I've met numerous people in my life who work for project-based IT/software companies. Many told me that they are doing repetitive work over the years. Some said that they only do small tiny work as an everyday task. Some said that they receive a salary without doing anything at all. They told me that they have to please HR's and managers to get an appraisal. I've noted some are more interested in increased salary package than skill enhancement. I'm very much disappointed and surprised to hear all these facts as I only worked for product-based startups.
During these mass layoffs, those employees are clueless because they lack in diversified skills. For them, getting another job is a big battle, only a few succeed. Some people make horrible decisions due to depression, stress, and social pressure.
As a startup, we request the project-based IT/software companies as well as the employees to build a vibrant work culture that produces people with diversified skills. So that if someone loses a job, he/she always has a chance in another company.
What will be the outcome of current mass layoffs?
Anyways, the IT/software industry is prepared for the mass layoffs as per their plan, whether you like or don't like it. First, you must know the outcome of these mass layoffs to find what to do.
Somehow, project-based IT/software companies learned that a successful company doesn't require a large number of employees. I'm sure they had watched how product-based startups prospered over a couple of decades with very tiny employees headcount.
Almost all project-based IT/software companies are trying to seek people with diversified skills. They don't want to pay for a person who can do only one thing for years. You must be sure that they are planning to build people with diversified skills so that one person can do the work of 10 people. Thus cutting down salaries and staying profitable.
- Whether you believe or not, I've seen many project-based IT/software companies trying to adopt open-source technologies last couple of years. They are not willing to pay to enterprise software vendors anymore, that's why adopting free and open-source technologies. With this move, they can save huge money. Thus cutting down enterprise software expenses and upgraded with open-source technologies.
I hope you understood what I'm trying to prove here. So, what's the one-word answer for the outcome of mass layoffs? Guess what, the DevOps work culture implementation.
Implementing DevOps work culture is the only way for the project-based IT/software companies to rejuvenate themselves and stay ahead of their competitors. Please check out the below posts and videos to know more about DevOps work culture.
- What is DevOps?
- How to get a job as DevOps engineer?
- Real definition of DevOps
- DevOps vs Traditional SDLC
- App-Centric DevOps vs Tool-Centric DevOps
- Implementing DevOps
- What problems DevOps solves?
- Becoming DevOps professional
Will the IT/software industry shift towards DevOps work culture?
Yes, it will definitely shift towards DevOps work culture because it is the only way to build people with diversified skills. Let me prove to you how much the demand for DevOps jobs has increased.
According to Google Trends, there is a 300% increase in traffic for DevOps topic/keyword in Google Search, from 2018 to 2019. For the last couple of years, the project-based IT/software industry is generating massive search traffic for DevOps keyword on the internet. The data points also convey to us another fact that the mass layoffs are directly proportional to the DevOps job market. If the DevOps job market increases, it increases the number of mass layoffs. I've just shown you the fact from data points. Now, it's time for you to do something.
SloopStash wants to support you
At SloopStash, we always want to help employees in times of trouble. As a product-based startup company, we are willing to connect with you to provide free informal mentoring/counseling. We are taking this minimal initiative to get people out of fear, panic, depression. If willing, please do fill the contact form with valid details. We will communicate with you shortly. Thank you.