Fireside Chat #56: Tech layoffs? What’s the resolution?

Ebunola Adenipekun

Ebunola Adenipekun

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At Codurance, our MDs Sandro Mancuso, Mashooq Badar and José Huerta regularly meet for informal chats after work. These discussions, where they share their personal insights, form the basis of our Fireside Chats, which you can find on our YouTube Channel.

This week the trio talked about tech layoffs and asked the question “What's the resolution?” 

With so much in the news about large tech companies laying off thousands of people, the reasons laid mostly on the door of the recession. 

The trio discussed how during the pandemic the tech sector took off rather than slowing down, especially with remote working and there was a hiring spree in the tech sector. And during times of high demand the salaries and costs increased with the number of people involved.

However, companies go through cycles and they tend to follow each other. With a return to the office and a harsh dip into recession, businesses don't have the same appetite in terms of whatever they want to produce, trimming their own ambitions and the workforce that they have as well.

The markets are looking for growth and profitability and one of the ways this needs to be done in the long term is with changing software. 

While some companies have died, a lot of other companies have been created. Tech layoffs have created an opportunity for those laid off to create their own more sustainable businesses too. Sandro talked about his own experiences.