The Darker Side of Tech Layoffs (it's darker than it seems)

posted Wed, May 14, 2025 by darren horrocks

The headlines have been stark: tech giant after tech giant announcing significant layoffs. While the immediate impact on those made redundant is undeniable and deeply upsetting, the fallout from these decisions extends far beyond those who receive the dreaded news. The industry wide repercussions are creating a climate of increased pressure, stifled career movement, and potentially lower earning potential for a vast number of tech professionals.

Let’s unpack the less visible, yet equally significant, ways tech redundancies are impacting everyone else.

The Weight of More with Less: The Burden on Remaining Employees

For those who remain after a round of layoffs, a sense of relief can quickly morph into a feeling of overwhelming pressure. Companies, often driven by a desire to maintain output with a leaner workforce, expect the same amount of work or even more to be accomplished by fewer people, which can translate to:

• Increased workload: Remaining employees are often expected to absorb the responsibilities of their former colleagues, leading to longer hours and a heavier burden.
• Reduced resources: Teams may find themselves with fewer resources, tools, or support staff, making it harder to execute projects efficiently.
• Heightened stress and anxiety: The fear of future layoffs, coupled with the increased workload, creates a climate of uncertainty and anxiety, impacting morale and well-being.
• Skill gaps and the pressure to upskill rapidly: Individuals may be asked to take on tasks outside their core expertise, leading to pressure to learn new skills quickly without adequate support or training.

This environment inevitably fuels burnout. The tech industry was already grappling with high rates of stress and exhaustion. Asking fewer people to do the work of many is a surefire way to exacerbate this existing crisis.

The Golden Handcuffs Tighten: The Frustration of Those Seeking New Opportunities

For tech professionals actively looking to leave their current roles for better opportunities, the wave of redundancies presents a frustrating Catch-22. While there might be new roles opening due to the layoffs, the dynamics of the job market have shifted:

• Extended Notice Periods: Individuals in stable employment are often bound by notice periods, which can range from weeks to months. Meanwhile, those made redundant are immediately available, giving them a significant advantage in a competitive job market.
• Missed Opportunities: By the time someone with a notice period is free to start, the roles they were interested in might already be filled by candidates who were made redundant and could start immediately.
• Feeling Trapped: This situation can leave those wanting to move feeling stuck and resentful, further contributing to dissatisfaction and potential burnout in their current roles.

The irony is palpable: individuals seeking growth and new challenges are penalised for their current employment stability in a market flooded with immediately available talent.

The Downward Pressure on Salaries: A Threat to Earning Potential

Perhaps one of the most concerning long-term effects of widespread redundancies is the potential downward pressure on salaries across the tech industry. This happens because:

• Increased Supply of Talent: A large pool of skilled tech professionals suddenly enters the job market.
• Willingness to Accept Lower Pay: Some of those made redundant may be in a position where they need to secure employment quickly, making them more willing to accept salaries lower than their previous earnings or the prevailing market rate.
• Employer Leverage: Companies looking to hire can leverage this increased supply and the willingness of some candidates to accept less, potentially driving down salary offers for everyone.

This erosion of salary expectations can have a significant impact on the financial wellbeing of all tech workers, not just those who were laid off. It can lead to:

• Reduced earning potential: Even those who remain employed or find new roles may find it harder to negotiate competitive salaries.
• Decreased morale and motivation: Feeling undervalued due to stagnant or declining salary prospects can further contribute to burnout and dissatisfaction.
• A less attractive industry: In the long run, lower salaries could make the tech industry less attractive to new talent, potentially hindering innovation and growth.

The Vicious Cycle: Redundancies Fuelling More Burnout

The interconnectedness of these factors creates a dangerous cycle that can significantly worsen the existing burnout crisis in the tech industry. Increased workloads, stifled career movement, and the fear of salary stagnation or decline all contribute to a more stressful and less rewarding work environment.

When people feel overworked, undervalued, and trapped, their motivation plummets, and their risk of burnout skyrockets. This can lead to decreased productivity, higher turnover in the long run (even among those who weren’t initially laid off), and a less vibrant and innovative tech ecosystem.

Looking Ahead: A Call for Empathy and Sustainable Practices

While companies may see redundancies as a necessary measure in challenging economic times, it’s crucial to recognise the far-reaching consequences. Ignoring the impact on remaining employees and the broader talent pool is a short-sighted approach that can have detrimental long-term effects.

Moving forward, a greater emphasis on sustainable growth, fair treatment of all employees (both departing and remaining), and a recognition of the human cost of these decisions is essential. Only then can the tech industry hope to mitigate the negative ripple effects of redundancies and foster a healthier, more resilient, and ultimately more productive environment for everyone.