Where did all these layoffs come from?

Unless you live under a rock, you surely have noticed that the tech industry is going through quite a rough patch right now. By September 2023, the number of people laid off by tech companies has already surpassed the total for 2022, reaching approximately 233,000, as reported by Layoffs.fyi. It would be foolish to assume that this problem only affects international corporations, where layoffs counted in thousands have by now become a standard part of the trade. This has affected Polish tech companies from all industries as well. You don’t have to look too far, to name just a few: (education), (games), or – closer to our field – (software development). 

Why are so many people being laid off?

There are several reasons that push companies to take such drastic measures. First and foremost is the raging inflation. It naturally affects the cost of doing business and annual budgets. But on a micro level, it affects regular people and their salaries, and as a consequence – rising employment costs as well. All this forced some companies to make the difficult decision to reduce their workforce.

However, the primary driver of this situation is the fact that their clients are facing similar budgeting problems. Tech companies are seeing a drop in contracts that they’re able to sign and extend. That’s because, with money being tight, everyone is hesitant to invest in developing their tech. And, having fewer clients, companies are compelled to lay off employees – either as a means to cut costs or simply because they don’t need as large a workforce anymore.

This situation affects not only developers but also other specialists in the industry, such as designers, project managers, and leadership. Unfortunately, the rising popularity of the #OpenToWork hashtag on LinkedIn proves that this trend affected a number of professionals.

Was it all necessary? Did companies have to lay off so many people? How did they find themselves in this situation? Was there anything they could have done to prevent it? I’m not the one to judge that, but I invite you to read some of the very well-articulated opinion pieces on the subject, such as .

How’s Gorrion navigating this situation?

Despite the challenges faced by the industry, Gorrion stands out as one of the companies that has not been as severely affected as the others. We’ve certainly not laid off any of our employees. But why? What’s the secret of our good luck?

It definitely has to do with our “client mix.” While it’s true that everyone’s been hit by the economic downturn, some were affected more than others. Gorrion offers a broad spectrum of services and solutions that appeal to clients from different industries and sectors. As a result, we continue to provide valuable services, even in uncertain times.

Another crucial factor, I think, is our flexibility and adaptability when faced with different circumstances. While other companies had to make cuts, Gorrion has managed to retain active projects and even attract new ones. Many of our clients had to adjust to the changing economic landscape, sure. But they still need solutions that would help them thrive and grow. And they knew their projects were in capable and trustworthy hands with us.

A silver lining to tech layoffs

Obviously, layoffs are never a good thing, because – putting aside business factors – they deeply affect people’s lives. Companies should remember this responsibility that’s weighing on them. However, the tech industry is known for its dynamic and ever-evolving nature. Thus, companies must remain flexible and quickly adapt to market shifts.

Likewise, tech professionals should focus on continuously expanding their skill set so that – when push comes to shove – they can be prepared for changes. And while the situation on the tech market as a whole looks quite dire right now, it’s worth noting that the research shows IT professionals can still find a new job relatively quickly, which gives them an amazing opportunity for growth.

If you are looking for stable employment with an incredible atmosphere where you can contribute to interesting projects, don’t forget to visit our careers page! We’re still hiring!