What’s happening to the tech industry with constant layoffs?

By John McCluskey, Managing Director, Whizdom and APSCo Director

It seems every other day a technology company is announcing layoffs. With chat GPT, Ai, machine learning and robots now becoming more mainstream, have we contributed to our own demise over the last few decades replacing the very industry that has fed our families over that period? Is this the beginning of the end for IT Recruiters all around the world?

Nah I don’t think so

The crazy pandemic boom times for the tech industry were never going to persist or be sustainable. Unfortunately, the layoffs appear to be a result of companies realigning their staffing to return to normal pre pandemic patterns. There were some extraordinary recruitment strategies adopted during the pandemic; perhaps, this too, will settle down as the number of available candidates increase

The layoffs are not just tech roles, they are widespread in tech firms that benefited greatly during the pandemic by improving IT systems and supporting flexible work. With many firms still requiring tech specialists competition for talent in the tech sector will remain fierce into the foreseeable future

We are seeing a a greater emphasis around the value of sovereign capabilities and manufacturing The pandemic has once again highlighted the importance of local supply chains and the risks associated with offshoring. Technology will play a pivotal role, as it will be necessary to compete with cheaper labour costs overseas. Innovations in Green energy, Space, AI, and Robotics are all showing signs of significant growth, indicating that overall, the IT industry is still in good shape

Focusing on the Canberra market, the Federal Labor Government is continuing to push back on contractors, which has been evident since the new year.

To see what functions and programs will be cut or funded, we are waiting for the upcoming Federal Budget and Defence White Paper.

Hopefully most of the Federal cutbacks come to an end, because we risk losing local IT talent to other cities unless the Federal Government provides some stimulus in the budget.

Personally, I am still quite optimistic about the employment market and tech sectors across Australia.