Why Big Tech Jobs are No Longer as Appealing as They Once Were

By Alex ChristianFeatures correspondentGetty ImagesEmployees who once wanted to work for Big Tech companies are changing their minds as layoffs become more common and benefits are reduced (Credit: Getty Images)Big Tech companies, once seen as top employers, are losing their appeal due to layoffs and cutbacks. Employees across the industry are reconsidering their career paths. Michael, who joined a Big Tech company in spring 2021, initially saw it as an opportunity to challenge himself among top software engineers in the world. “They do some very complicated projects: when you join them, you’re supposedly joining the best. You feel you’re working somewhere that raises your brand value as a person.”At first, things went smoothly for Michael. He got involved in high-impact projects and tested himself against senior developers. The perks were also attractive. “It was a typical Big Tech company in that it offered huge benefits, with a great work-life balance,” he says. “Compared to my past employers, it was a breeze: there was free food, wellness expenses and health insurance. And the people were amazing – it was a nice working environment, if at times a little cult-ish.”The first sign of change came in March 2022 when the free laundry service was discontinued. More cutbacks followed – the timing of dinners for employees working late shifted, conflicting with the final free shuttle schedule leaving the New York campus. Employees had to choose between free food and a free ride home. “Folks complained – particularly the younger ones. It was a very pampered place.”Months later, cuts to perks were followed by job cuts – Michael was among 11,000 employees laid off in November that year, as part of a broader tech slowdown and industry-wide layoffs. He decided to leave Big Tech altogether and now works in “Big Finance” for a major investment bank. He still finds the work interesting and feels he has better job security. “If you’d have asked me before, I’d have said I’d work for another ‘Faang’ company next. But there’s a world outside Big Tech.” Getty ImagesPerks such as in-house fitness centres, like this one in Google Canada’s engineering headquarters, were among the amenities offered to employees (Credit: Getty Images)Tech roles, especially at major companies such as Meta, Alphabet, and Amazon, were once highly sought-after, offering six-figure salaries, generous perks, and the opportunity to be at the forefront of innovation. But since the summer of 2022, the sector has seen numerous cuts, layoffs, and uncertainty. In some cases, companies have clamped down on remote work, making a return to the office mandatory.According to industry tracker Layoffs.fyi, 23,670 workers were laid off across 85 tech companies in January 2024 alone, including Microsoft, Amazon, eBay, and Google. This has led some workers to look for jobs outside the sector they once strived to be a part of. ‘Tech was the place to be’Before the layoffs, tech companies were famous for their workplace cultures and lavish benefits in state-of-the-art offices. However, gourmet chefs and meditation rooms were not just put in place to keep employees on site – they were also a way to attract top talent. Scott Dobroski, career trends expert at Indeed, San Francisco, says candidates, especially in tech, pay attention to employer branding and company culture. This changed after the pandemic. As the economy struggled in spring 2022, rising inflation and interest rates stifled companies’ growth. This led to hiring freezes and then industry-wide layoffs in late 2022, which are ongoing. “Covid-19 was a once-in-a-generation event that changed companies’ trajectories, overestimating demand and sending them into hiring sprees,” says Dobroski. “After coming too strong out the gate in 2021, tech companies had to suddenly pull back their recruitment.”Many workers now find the tech sector less appealing. According to Indeed’s Best Jobs of 2024, measured by salary, flexibility, and growth, only three of the top 25 are tech roles, compared to 11 in its 2023 edition.”While tech jobs continue to offer high salaries and above-average flexibility, they have significantly declined in terms of growth,” says Dobroski. “Job seekers typically want to join companies that are flourishing, where they feel they can advance. But when layoffs are announced, it not only reduces job market opportunities, but also damages employers’ reputations and signals uncertainty.”Employees currently in the industry also express dissatisfaction.Alessandra works for a blockchain technology firm in London. She chose tech as her career when she started as an intern at her employer’s corporate headquarters. “I was impressed by the office – it made it feel like tech was the place to be. It was its fast-paced and innovative nature that stood out most to me: as though I could be part of something new.”Alessandra’s firm has been impacted by the tech slowdown. By February 2023, one of its blockchain product offerings was shut down. Layoffs have continued – her team has now been reduced significantly. Employees are also required to be in the office three days a week or face consequences. “My day fluctuates between being incredibly intense when it seems things are ‘taking off’, to long periods of doing absolutely nothing,” she says. AlamyModern, cool offices – like Amazon’s Urban Campus in Washington, US – were part of the initial appeal of Big Tech jobs (Credit: Alamy)Her disillusionment extends beyond her company to the industry itself. “It’s seemingly luck whichever part of tech you fall in. Right now, AI is taking off, so everyone else feels like they’re getting left behind. It’s not just my company: the market itself doesn’t know what it needs to do to succeed, or where it’s headed. I no longer feel inspired, or that ‘buzz’ when I first stepped into the office.”‘The glory days will be back’Dobroski believes that excitement for jobs in the tech sector will only return once the economy fully recovers, layoffs end, and companies start hiring en masse. Only certain roles remain sought after. “History has shown that when there’s job growth, that’s the signal there are opportunities for job seekers,” he says. “For now, there are areas within the industry that are still very attractive to tech talent, such as AI teams at both Big Tech companies and start-ups.”Even though he has left the industry, Michael says he would still work for a Big Tech firm in the future. “The benefits are great, and you’re driven to work on big problems you can one day point to and say, ‘I developed that’. The glory days will be back: a couple of years post-economic downturn, and it’ll be back to 2021. Tech talent is always going to be in short supply.”For now, however, many tech workers are looking for opportunities elsewhere. “Most of my colleagues feel the same way: we’re working towards something that’s going nowhere,” says Alessandra. “And after seeing so many close colleagues suddenly be made redundant, or quit as a result, we’ve lost faith in what we’re trying to achieve. Most of us are planning our exit strategies from the company – and some even from the industry.”The BBC is not disclosing the surnames of Michael and Alessandra for job-security reasons.

Author: OpenAI