Kumari writes at the crossroads of AI, ethics, and the future of hiring. With a background in both engineering and philosophy, they challenge assumptions in how we assess and select talent.
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Read Kumari Trishya for deeply reflective takes on automation, AI interviews, and what fair, inclusive hiring could look like in tomorrow’s workplace.
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Identifying the top technical skills that you should hire for is even harder.
But we've got your back.
Based on the hiring trends we have seen on our HackerEarth Assessments platform, we made a list of the top technical skills you should be focusing on in 2025.
What are these tech skills? Keep reading to find out.
8 tech skills in high demand in 2025
Imagine you have a marketing degree but zero skills on how to create a marketing strategy. Would you be qualified for the marketing role? Nope. Similarly, if you don’t have these 8 top technical skills, you won’t be able to survive as a developer in 2025. Here are 8 technical skills you need to get your grip on in this coming year:
1. Java
Do you know Amazon is currently the most popular JDK vendor with 31.35% of the market? This is a mere example of how important Java as a skill currently is and how valuable it will be in the upcoming years. This is what a Redittor has to say about Java: In a nutshell, Java is known for its platform independence and scalability. It continues to be a top choice for building robust and versatile applications.
Java has been a robust and versatile programming language with a strong ecosystem, widely used in enterprise-level applications.
Whether a dev is solving real-world problems or tackling a personal project, logical reasoning will help you understand how they analyze problems, break them down into smaller parts, and apply rules and principles to achieve the right solution. Overall, logical reasoning is the bedrock of effective problem-solving. As a recruiter, you should prioritize candidates who not only possess technical expertise but also possess strong logical reasoning abilities.
3. CSS
In the past few years, companies have moved digital — which has opened more doors for technology companies to create more technology products. With this comes another important part — designing websites for such companies. But with designing beautiful design comes a challenge: not being able to design responsive websites. According to GoodFirms, 71% of web designers say they lack responsiveness with multiple devices — which is a top reason for customers to leave the website. The good news is, you can avoid and eliminate this problem with the help of CSS. When an engineer has proficiency in CSS, they can not only create visually appealing websites but also understand the thought process of responsive website design, accessibility, and cross-browser compatibility. So, look for developers with knowledge of CSS to contribute to the creation of seamless and visually stunning user interfaces, enhancing overall user engagement and satisfaction.
4. Data Structures
Tech companies look for knowledge of Data Structured Algorithms (DS) when hiring employees because:
Companies want developers who can choose the right algorithms to save company resources such as servers, computation power, and money.
Developers have to write efficient code — which requires expertise in DSA.
As a recruiter, aim for candidates who can efficiently organize and manipulate data — as this skill is essential for optimizing algorithmic performance. To be able to incorporate DSA into your interview process, first, you must know the commonly used data structures:
Array — it holds and indexes items of the same data type
Linked lists — it organizes data into a linear, sequentially linked order
Stacks — it allows programmers to access recently placed items first
Once you learn the different data structures, you can include them in your technical assessments and check for the DSA knowledge in tech candidates.
5. C++
If you’re hiring backend developers, C++ is a must-have skill due to its high-performance computing and system-level programming. Organizations looking to build resource-intensive software, such as gaming engines or operating systems, should prioritize candidates with expertise in C++.Also, read: The Complete Guide to Hiring a C++ Developer
6. JavaScript
JavaScript stands strong under the top 10 positions in the TIOBE Index Rating of 2023 with rank #6 in 2023. Clearly, JavaScript remains the backbone of dynamic and interactive web applications. With frameworks like React and Angular, JavaScript has expanded its reach to both frontend and backend development. With proficiency in JavaScript, Devs can create responsive and feature-rich user interfaces and server-side applications.
Proficiency in core JavaScript — strong grasp of core concepts of the language including variables, data types, functions, control flow, and object-type programming
Knowledge in front-end development — Understanding of HTML, CSS, and Document Object Model (DOM) to create interactive user interfaces
Experience with popular front-end frameworks — Knowledge of React, Vue, and Angular
Familiarity with server-side programming — Knowledge of Node.js, Express.js, and database technologies
Big tech companies like Reddit, Amazon, Dropbox, Paypal, Pinterest, and Instagram (and many more) use Python. According to JetBrains State of Developer Ecosystem report, 27% of respondents showed their interest in learning Python compared to other programming languages like Java and JavaScript. Why? Python is more readable, versatile, and has extensive libraries. Developers well-versed in Python bring efficiency to tasks ranging from data analysis and machine learning to web development. The language's simplicity and readability make it an excellent choice for rapid prototyping and development. Recruiters should prioritize candidates with Python skills, recognizing the language's role in driving innovation across various domains.
8. C#
Whether the goal of your organization is mobile development, game development, web application, and service creation, or Microsoft and website application development — C# remains a preferred language. With its strong integration with the .NET framework, C# enables the creation of robust and scalable software solutions. So, recruiters should consider the demand for C# expertise, especially when hiring for organizations heavily invested in Microsoft technologies.
Feeling confident to hire in 2025?
Whatever you're hiring goals for 2025 may be, HackerEarth Assessments can help. Our skill-first platform helps you hire global developers through curated take-home coding tests that match your tech team's needs. Over the last 11 years, we have helped more than 4000 companies find their purple unicorn through our branded hackathons, hiring challenges, and assessments. You could be next!
Happy hiring!
Frequently Asked Questions
Q.1. Which technical skills are most in demand in 2025?
Top technical skills that currently are and will continue to be in demand include:
Java
Python
CSS
C++,
C#
Q.2. Which technical skills are in demand in India?
According to The Economic Times, 3 technical skills in demand include Java Full Stack, Data Analytics, and Enterprise Resource Planning (ERP).
In the fast-paced tech world, finding the right talent is paramount. For years, HackerEarth has empowered tech recruiters to identify top talent through targeted skill assessments and engaging coding challenges. Now, we’re amplifying that impact by joining forces with Olibr’s vast job portal and advanced candidate screening tool.
Imagine a world where:
Candidates seamlessly showcase their skills through HackerEarth challenges directly on Olibr, boosting their profiles and attracting the right employers.
Tech professionals gain access to a wider range of opportunities perfectly aligned with their skill sets and aspirations.
Employers tap into a pre-assessed talent pool, streamlining their hiring process and finding the best fit quickly and efficiently.
That’s the future HackerEarth and Olibr are building together.
Here’s how this partnership empowers you!
For developers and tech professionals
You have a chance to prove your skills: Stand out from the crowd with HackerEarth’s renowned coding challenges and get noticed by top employers.
You can unlock exclusive opportunities: Access a treasure trove of jobs that value verified skills and propel your career forward. Once you identify a job you are interested in, you can share your details and digital resume using a digital business card.
Upskill by embracing continuous learning: Stay ahead of the curve with access to learning resources and upskilling opportunities within the platform.
For employers and recruiters:
Ditch the talent pool, dive into the talent ocean: Access a vast, diverse pool of pre-assessed candidates from both platforms, widening your talent acquisition reach.
Hire faster, hire smarter: Streamlined assessments and pre-qualified candidates mean quicker hiring cycles and better quality hires.
Say goodbye to guesswork: Focus on finding the perfect fit with in-depth skill assessments and insightful candidate data.
Build a high-performing tech team: Make data-driven hiring decisions with objective skill evaluations as your guide.
The future is Now!
We’re moving towards a skill-centric future, where talent and opportunity connect effortlessly. This collaboration sets new industry standards, making hiring about finding the right people, not just filling roles.
Welcome to the era of skill-first hiring, powered by HackerEarth and Olibr.
Imagine hiring a candidate that is the perfect fit for your company. With unbeatable technical skills, impressive communication skills, and a good team player.
Who doesn’t want that?
But judging a candidate’s personality and capabilities is tough, especially in tech hiring. You need a platform that helps you test relevant skills in real time.
HackerEarth and Codility are well-known platforms that tech companies swear by. You can evaluate applicants’ technological aptitudes effectively throughout the interview process and employment. These platforms include various tools and services that allow companies to develop coding challenges, assessments, and interviews to assess individuals’ coding skills.
Both these companies are neck-to-neck when it comes to popularity. In fact, many hiring managers and recruiters frequently struggle to decide between them. Despite certain parallels in their services, they are distinct due to several factors.
In this article, let’s compare the features, costs, user interfaces, and other aspects of Codility’s alternative, HackerEarth and Codility itself. By the end of this article, the platform that best meets your recruitment needs will be clear to you.
HackerEarth
HackerEarth is a top platform offering technical recruiting solutions for businesses of all sizes. Recruiters and hiring managers can easily create coding challenges and assessments with HackerEarth. The platform provides a vast library of 17,000+ questions across 900+ skills that can be tailored to your organization’s unique needs.
Additionally, HackerEarth is also known for having the best end-to-end managed hackathons platform and its intelligent coding interview tool, FaceCode. You may utilize the platform to make data-driven recruiting decisions by getting real-time insights into candidates’ performance through advanced analytics and machine learning algorithms.
Codility
Codility’s offerings are quite similar to that of HackerEarth. They also aim to help tech companies make better hiring decisions. Its platform provides skill-based programming tests to evaluate developers accurately. It provides you with an expansive library of 90+ technologies and allows you to create custom tests.
Why should companies choose HackerEarth over Codility?
The choice between HackerEarth and Codility ultimately comes down to the objectives and hiring demands of your organization. Both platforms include various features and tools that allow recruiters and hiring managers to gauge and evaluate candidates’ technical skills.
However, if you want a versatile tech hiring platform, go for HackerEarth, which is a superior alternative to Codility.
It’s a user-friendly platform with a question bank of more than 17,000+ coding-related questions. This makes it simple to create tests for recruiting a majority of roles from junior to senior tech employees. Recruiters can create customized tests that meet their unique criteria with minimal technical know-how. Additionally, HackerEarth’s assessment platform provides real-time reporting and performance insights.
On the other hand, Codility also offers similar features but with some limitations. Let’s dive in and see what sets these two platforms apart.
HackerEarth Vs Codility
1. Features and functionality
HackerEarth: HackerEarth helps you build the best tech teams, providing a full package from attracting the right talent to upskilling the current workforce. Moreover, HackerEarth understands that it might be difficult for a recruiter to do it all. That’s why we introduced easy navigation, a pre-built library, and highly customizable assessments that match specific requirements. Moreover, our customer support is known to be excellent.
Which helps you hire, train and retain the best talent!
Codility: Codility provides features like pre-built coding tasks and questions that may be customized to meet specific needs, a comprehensive coding examination tool that supports many different programming languages, and an online code editor that enables applicants to develop and test their code. However, the platform may not be as ideal for many organizations due to its complex user interface and high pricing models.
2. Test creation and administration
Let’s take a look at the key differences between Codility and HackerEarth. Both platforms offer state-of-the-art AI-based tech recruiting tools.
HackerEarth: The platform opens up its comprehensive library of pre-built coding questions to you. You can choose from 17,000+ questions and 900+ skills to set the right test for each job role. You can create tests based on a particular skill, job role, or job description. It also has the option of tailoring tests so they match your specific requirements.
The platform supports multiple question types, including MCQs, coding questions, and subjective questions. The platform’s drag-and-drop interface allows recruiters to arrange and organize questions easily. Additionally, recruiters can customize test settings, such as the time limit, difficulty level, and programming language.
Codility: Codility offers a comprehensive set of tools and features for test creation and administration, but it can be long and complicated if you do not have any prior interaction with the platform. Its library of questions is also minimal when compared to HackerEarth’s library.
Although you can try and customize your test from the library of pre-built code tasks and questions with the platform, the modification options are restricted. If you want to customize your tests, not all question types in the library can be used. You can also only create role-specific tests. This may make it challenging to design assessments that can accurately evaluate candidates’ abilities.
3. Integrations
A good technical interviewing software should be compatible with other HR software. This is where HackerEarth and Codility differ.
HackerEarth: provides a variety of connections with ATS and HR applications. You can easily handle real-time candidate data and evaluation results, boosting their hiring processes’ efficacy and efficiency.
HackerEarth makes it simple for businesses to incorporate the findings of their assessments into their current hiring workflows by connecting with well-known ATS and HR software programs like Greenhouse, Lever, Zoho, and Workable. Eliminating the need for manual data entry and increasing the accuracy of candidate data enables you to make better recruiting decisions.
Codility: Codility allows integrations with a few popular ATS and HR software, like Greenhouse and Lever. But, compared to HackerEarth, Codility’s integration possibilities are limited.
Another limitation of Codility’s integrations is that there may be multiple stages in the employment process, which means some human data entry may be required. This might be time-consuming and increase the likelihood of errors or inconsistent data.
Reporting and analytics are crucial in tech interviews because they offer unbiased information about a candidate’s technical skills and talents, which may assist hiring managers in making better choices. Let’s check how HackerEarth provides more detailed reports than Codility.
HackerEarth: To make better recruiting decisions, recruiters may follow the development and performance of candidates in real time. With the platform’s robust data visualization features like leaderboards, you can immediately spot trends and patterns in evaluation data.
You can avail code quality scores based on 4 parameters in candidate performance reports with HackerEarth’s reporting. The parameters are maintainability, reliability, security, and cyclomatic Complexity. This helps you get a deeper insight into a candidate’s capabilities and make the correct hiring decision.
It also supports question-based analytics and supplies a health score index for each question in the library to help you add more accuracy to your assessments. The health score is based on parameters like degree of difficulty, choice of the programming language used, number of attempts over the past year, and so on.
Codility: Codility offers fundamental reporting and analytics features that let recruiters monitor the progress of candidates and the outcomes of assessments. However, Codility’s reporting and analytics tools fall short in several areas when compared to HackerEarth.
It also offers code quality scores but only on 3 parameters of correctness (available only for test cases), and performance, which includes a similarity/plagiarism check.
The lack of customization possibilities is one of the major drawbacks of Codility’s reporting and analytics services.
5. Remote proctoring capabilities
HackerEarth: The chances of a candidate cheating on a HackerEarth technical assessment are virtually zero with our robust AI-powered proctoring features. To begin with, our platform does not allow candidates to use their own IDE to attempt a test.
We recently launched the HackerEarth Smart Browser which provides a sealed-off testing environment and takes random snapshots of the candidates via the webcam. A comprehensive list of candidate actions that are not allowed is as follows –
Screensharing the test window
Keeping other applications open during the test
Trying to switch tabs
Resizing the test window
Taking screenshots of the test window
Recording the test window
Using malicious keystrokes
Viewing OS notifications
Running the test window within a virtual machine
Operating browser developer tools
Additionally, HackerEarth Assessments restricts IP addresses based on location. This feature is useful during campus recruitment drives to prevent cheating.
Codility: The proctoring features provided by this platform are not as advanced as HackerEarth’s. In fact, the available proctoring features are quite limited and not AI-powered.
Candidates can solve the assessment using their own IDE. This makes it difficult to curb any malpractices like copy-pasting code, switching tabs to search for solutions, and screen sharing to get help from external sources. Recruiters and hiring managers will have their work cut out for them, trying to closely monitor each candidate remotely and protect the integrity of the test.
6. Security and data privacy
In tech interviews, candidates are frequently asked to share sensitive information, including their personal information, employment history, and code samples. Therefore security and data privacy are essential. You must set up safe and dependable systems for data transmission, storage, and access control if you want to guarantee the security of this data.
Here is how HackerEarth and Codility provide security and data privacy.
HackerEarth: HackerEarth strongly emphasizes security and data privacy, making it a highly trusted platform for recruitment and assessments. The platform is designed to ensure that candidate data is protected at all times and that the platform is secure from potential cyber threats.
HackerEarth also has robust data privacy policies to ensure that candidate data is handled in compliance with relevant data protection laws, like GDPR, ISO 27001, ISO 27017, and CCPA.
Codility: Codility has basic security and data privacy measures in place. The platform lacks some of the key security features essential for recruitment and assessments.
Regarding data privacy, Codility has some policies to ensure compliance with data protection laws like GDPR, ISO 27001, and CCPA. However, the platform lacks some of the tools recruiters need to manage candidate data securely.
You must pick an affordable platform with a price structure that matches your requirements for hiring. Support is essential during the interview if there are any technical difficulties or inquiries. A dependable support crew may reduce downtime, resolve issues, and guarantee a positive interviewing experience for prospects and recruiters.
HackerEarth: HackerEarth provides flexible pricing options to their clients, allowing them to choose the plan that best fits their needs and budget. The platform offers pay-as-you-go and subscription-based plans, making it accessible to organizations of all sizes.
In addition to flexible pricing options, HackerEarth provides excellent customer support to their clients. It offers a customer support chat solution around the clock. HackerEarth also provides extensive documentation and training materials to help recruiters and hiring managers get the most out of the platform.
Its flexible pricing options and excellent customer support make it attractive for organizations seeking a reliable and cost-effective recruitment and assessment platform.
Codility: Codility’s pricing model is less flexible than HackerEarth, making it less accessible to organizations with limited budgets. The platform offers only subscription-based plans, which can be costly for smaller organizations.
Regarding customer support, Codility provides basic support services to its clients. However, the platform’s support resources are limited compared to HackerEarth. Codility does not offer 24/7 support, making it difficult for organizations operating in different time zones.
8. User experience
User experience (UX) can significantly impact candidate engagement, satisfaction, and, ultimately, an organization’s recruitment success, making it an essential part of technical interviews. A well-designed and user-friendly platform can attract top talent, promote a good candidate experience and positively reflect the company’s brand and culture.
HackerEarth: HackerEarth provides a fantastic user experience through its intuitive and user-friendly interface. The platform has a modern and sleek design that is easy to navigate, making it accessible to technical and non-technical users. The highly customizable platform allows recruiters and hiring managers to tailor it to their needs.
In addition, HackerEarth provides a seamless candidate experience. The platform’s assessments are engaging and interactive, making it easy for candidates to showcase their skills and abilities. The platform also provides candidates with detailed feedback.
Codility: Codility’s less polished user experience and limited customization options can make it less attractive to organizations that prioritize user-friendliness and flexibility in their recruitment and assessment platforms.
9. User reviews and feedback
It is advisable to check reviews before investing in any software or tool. In tech interviews, customer reviews and comments are crucial as they shed light on the pros and cons of the platform as well as the overall user experience. You may better understand how the platform works in practical situations. Let’s see what other companies are saying about HackerEarth and Codility.
HackerEarth: HackerEarth has received overwhelmingly positive user reviews and is trusted by 1000+ top enterprises. The platform is highly praised for its intuitive interface, customizable assessments, and excellent customer support. Users also appreciate the platform’s seamless integration with other HR software and ATS systems and robust reporting and analytics capabilities.
Companies like Flipkart, Lenskart Freshdesk, and many more rely on HackerEarth to hire top talent in the industry. In addition, many users also note that HackerEarth’s assessments are engaging and interactive. Users agree that the assessments are fair and unbiased.
Codility: Codility has received mixed reviews and feedback from users. While some users appreciate the platform’s focus on algorithmic testing and its ability to identify top technical talent, others criticize its lack of customization options and less-polished user interface.
Some users have also expressed frustration with Codility’s pricing model, which can be expensive for organizations that conduct several assessments.
The scales are tipping in favor of…
In conclusion, HackerEarth and Codility provide useful hiring and evaluation tools to assist businesses in streamlining their hiring procedures and locating top talent. However, you should consider several significant variations between the two while deciding which platform to adopt.
HackerEarth is a great alternative to Codility and outperforms it in several ways. To summarize a few advanced features it provides:
more refined user experience,
multiple customization choices,
better remote proctoring features
robust reporting and analytics tools.
The platform also heavily emphasizes security and data protection, making it a viable option for businesses that value these aspects.
Contrarily, Codility’s focus on coding challenges and assessments may be particularly appealing to organizations looking to hire for technical roles. However, the platform may be less customizable and less intuitive than HackerEarth, and some users have criticized its pricing model, the proctoring limitations, and the accuracy of its assessments.
Not convinced yet? So don’t take our word for it. Sign up for a free trial and check out HackerEarth’s offerings for yourself!
Hire IQ by HackerEarth is a new initiative in which we speak with recruiters, talent acquisition managers, and hiring managers from across the globe, and ask them pertinent questions on the issues that ail the tech recruiting world.
We have Joel Soucy, Employee Experience Specialist at Solink for our next edition in this series. We had an interesting conversation revolving around employee experience and how to maintain a fun and cohesive work culture, especially as teams become more and more remote.
Let’s get to it, shall we?
P.S. If you missed the previous edition of HireIQ where we sat down with Ashutosh Kumar, Director of Data Science, at Epsilon India, you can read it here 🙂
Understanding employee experience at the workplace
HackerEarth: LinkedIn says your designation is an 'Employee Experience Specialist'. Could you explain this to us a little bit more? How does this form an integral part of your company culture?
Joel: I am focused on engagement and retention. The orientation session for all our new employees is led by me. We let them know what the vibe of the company is, mention some names they should know, Slack channels they should join, etc. I continue to check in with each new employee on a regular basis. We have also scheduled 45-day, 6-month, and 1-year check-ins to make sure all is well.For those here longer than a year, it’s less of a scheduled check-in and more of impromptu conversations, especially if there are known issues in a certain department or if there is an inner movement for the employee such as a change of department or promotion. I also assist with planning our weekly company-wide meetings, help with training on the product (I’m a former CSM (customer success manager) here at Solink), and various HR admin-related tasks as they come up.Also, read: 7 Employee Engagement Strategies For WFH Tech Teams
HackerEarth: In times like these, where we are facing such strong market and business upheavals, how do you ensure your team is feeling strong? What tools, resources, or metrics would you use to judge your team's pulse?
Joel: I think just being a friendly face for someone to approach goes a long way. The inner workings of the company, the product, and the people are something I'm well-versed in. So I can guide employees in the right direction if they’re lost or have questions or concerns. Common trends among job titles, departments, and the overall company are something I keep track of. They help me, without naming names, approach leadership with issues that may need to be addressed.eNPS (employee net promoter score), participation in company events and meetings, time off, and tenure are all tracked and reviewed.
HackerEarth: Our recent survey shows that many developers think companies can do much more to help them navigate challenging times. Looking at global giants like Twitter, Meta, and Amazon - no one seems to have escaped this recession unscathed. They have all been lamented for the way they have handled things. Why do you think companies do not have a robust internal blueprint to follow during such times?
Joel: While you try to be as prepared as possible, I don’t think it’s in companies—or people for that matter to be truly ready for worst-case scenarios. Has there ever been a successful mass layoff where the media and the world look at it and go “that went great”?
Hundreds or even thousands of people losing their jobs will never be a good thing. However, if a company can learn from its mistakes in hiring and organizational structure and never again be in the news for laying off a portion of its employees, then I would call that a win.
HackerEarth: Canada is known to be a very inclusive country, yet a recent report shows that fewer than half of Canadian companies have laid down DEI policies. What does DEI mean to you as an Employee Experience Specialist? Where do you think this lack is coming from?
Joel: I fully recognize my privilege as a white male. Consequently, I try to focus on continuing to learn, engage, and be open to conversations. I don’t think there are many companies out there that can truly say they’re doing enough for diversity and inclusion, but listening and having a willingness to change need to be a part of the company culture.
HackerEarth: The last few years have been tough on recruiters as well. Apart from running the office fantasy football league, what are the other ways in which you unwind, and protect your mental health?
Joel: Every Solink employee gets $50/month to spend on their health & wellness—gym membership, access to a yoga studio, meditation app, etc. We are a competitive bunch, so fantasy sports and online gaming, while stressful, are also a lot of fun!
Currently, we’re doing the Outbreak Challenge. It is an app that puts us into teams and also, counts our steps. The challenge is running away from zombies.
Lastly, we encourage employees to have open conversations about work/life balance with their manager, or a member of the HR team or use our Employee Assistance Program, Lifeworks. It is a service where you can anonymously speak to a professional regarding stresses in your life such as financial, family, or health worries.About Joel Soucy:
Joel Soucy is the Employee Experience Specialist at Solink, an Ottawa-based tech company. With experience in Customer Success, Sales, and Program Management, Joel pivoted into People Ops/HR. To focus his energy and ability to connect, this time with co-workers instead of clients. Joel is married with two kids, a bunch of animals, and a mile-long projects-at-home to-do list that he plans on completing by 2099.
Layoffs in the IT industry are becoming more widespread as companies fight to remain competitive in a fast-changing market; many turn to layoffs as a cost-cutting measure. Last year, 1,000 companies including big tech giants and startups, laid off over two lakhs of employees. But first, what are layoffs in the tech business, and how do they impact the industry?
Tech layoffs are the termination of employment for some employees by a technology company. It might happen for various reasons, including financial challenges, market conditions, firm reorganization, or the after-effects of a pandemic. While layoffs are not unique to the IT industry, they are becoming more common as companies look for methods to cut costs while remaining competitive.
The consequences of layoffs in technology may be catastrophic for employees who lose their jobs and the firms forced to make these difficult decisions. Layoffs can result in the loss of skill and expertise and a drop in employee morale and productivity. However, they may be required for businesses to stay afloat in a fast-changing market.
This article will examine the reasons for layoffs in the technology industry, their influence on the industry, and what may be done to reduce their negative impacts. We will also look at the various methods for tracking tech layoffs.
What are tech layoffs?
The term "tech layoff" describes the termination of employees by an organization in the technology industry. A company might do this as part of a restructuring during hard economic times.
In recent times, the tech industry has witnessed a wave of significant layoffs, affecting some of the world’s leading technology companies, including Amazon, Microsoft, Meta (formerly Facebook), Apple, Cisco, SAP, and Sony. These layoffs are a reflection of the broader economic challenges and market adjustments facing the sector, including factors like slowing revenue growth, global economic uncertainties, and the need to streamline operations for efficiency.
Each of these tech giants has announced job cuts for various reasons, though common themes include restructuring efforts to stay competitive and agile, responding to over-hiring during the pandemic when demand for tech services surged, and preparing for a potentially tough economic climate ahead. Despite their dominant positions in the market, these companies are not immune to the economic cycles and technological shifts that influence operational and strategic decisions, including workforce adjustments.
This trend of layoffs in the tech industry underscores the volatile nature of the tech sector, which is often at the mercy of rapid changes in technology, consumer preferences, and the global economy. It also highlights the importance of adaptability and resilience for companies and employees alike in navigating the uncertainties of the tech landscape.
Yes, the market is always uncertain, but why resort to tech layoffs?
Various factors cause tech layoffs, including company strategy changes, market shifts, or financial difficulties. Companies may lay off employees if they need help to generate revenue, shift their focus to new products or services, or automate certain jobs.
In addition, some common reasons could be:
Financial struggles
Currently, the state of the global market is uncertain due to economic recession, ongoing war, and other related phenomena. If a company is experiencing financial difficulties, only sticking to pay cuts may not be helpful—it may need to reduce its workforce to cut costs.
The tech industry is constantly evolving, and companies would have to adjust their workforce to meet changing market conditions. For instance, companies are adopting remote work culture, which surely affects on-premises activity, and companies could do away with some number of tech employees at the backend.
Restructuring
Companies may also lay off employees as part of a greater restructuring effort, such as spinning off a division or consolidating operations.
Automation
With the advancement in technology and automation, some jobs previously done by human labor may be replaced by machines, resulting in layoffs.
Mergers and acquisitions
When two companies merge, there is often overlap in their operations, leading to layoffs as the new company looks to streamline its workforce.
But it's worth noting that layoffs are not exclusive to the tech industry and can happen in any industry due to uncertainty in the market.
Will layoffs increase in 2024?
It is challenging to estimate the rise or fall of layoffs. The overall state of the economy, the health of certain industries, and the performance of individual companies will play a role in deciding the degree of layoffs in any given year.
But it is also seen that, in the first 15 days of this year, 91 organizations laid off over 24,000 tech workers, and over 1,000 corporations cut down more than 150,000 workers in 2022, according to an Economic Times article.
The COVID-19 pandemic caused a huge economic slowdown and forced several businesses to downsize their employees. However, some businesses rehired or expanded their personnel when the world began to recover.
So, given the current level of economic uncertainty, predicting how the situation will unfold is difficult.
What types of companies are prone to tech layoffs?
Tech layoffs can occur in organizations of all sizes and various areas.
Following are some examples of companies that have experienced tech layoffs in the past:
Large tech firms
Companies such as IBM, Microsoft, Twitter, Better.com, Alibaba, and HP have all experienced layoffs in recent years as part of restructuring initiatives or cost-cutting measures.
Market scenarios are still being determined after Elon Musk's decision to lay off employees. Along with tech giants, some smaller companies and startups have also been affected by layoffs.
Startups
Because they frequently work with limited resources, startups may be forced to lay off staff if they cannot get further funding or need to pivot due to market downfall.
Small and medium-sized businesses
Small and medium-sized businesses face layoffs due to high competition or if the products/services they offer are no longer in demand.
Companies in certain industries
Some sectors of the technological industry, such as the semiconductor industry or automotive industry, may be more prone to layoffs than others.
Companies that lean on government funding
Companies that rely significantly on government contracts may face layoffs if the government cuts technology spending or contracts are not renewed.
How to track tech layoffs?
You can’t stop tech company layoffs, but you should be keeping track of them. We, HR professionals and recruiters, can also lend a helping hand in these tough times by circulating “layoff lists” across social media sites like LinkedIn and Twitter to help people land jobs quicker. Firefish Software put together a master list of sources to find fresh talent during the layoff period.
Because not all layoffs are publicly disclosed, tracking tech industry layoffs can be challenging, and some may go undetected. There are several ways to keep track of tech industry layoffs:
In addition, they aid in identifying trends in layoffs within the tech industry. It can reveal which industries are seeing the most layoffs and which companies are the most affected.
Companies can use layoff trackers as an early warning system and compare their performance to that of other companies in their field.
News articles
Because many news sites cover tech layoffs as they happen, keeping a watch on technology sector stories can provide insight into which organizations are laying off employees and how many individuals have been affected.
Social media
Organizations and employees frequently publish information about layoffs in tech on social media platforms; thus, monitoring companies' social media accounts or following key hashtags can provide real-time updates regarding layoffs.
Online forums and communities
There are online forums and communities dedicated to discussing tech industry news, and they can be an excellent source of layoff information.
Government reports
Government agencies such as the Bureau of Labor Statistics (BLS) publish data on layoffs and unemployment, which can provide a more comprehensive picture of the technology industry's status.
How do companies reduce tech layoffs?
Layoffs in tech are hard – for the employee who is losing their job, the recruiter or HR professional who is tasked with informing them, and the company itself. So, how can we aim to avoid layoffs? Here are some ways to minimize resorting to letting people go:
Salary reductions
Instead of laying off employees, businesses can lower the salaries or wages of all employees. It can be accomplished by instituting compensation cuts or salary freezes.
Implementing a hiring freeze
Businesses can halt employing new personnel to cut costs. It can be a short-term solution until the company's financial situation improves.
Businesses might search for ways to cut or remove non-essential expenses such as travel, training, and office expenses.
Reducing working hours
Companies can reduce employee working hours to save money, such as implementing a four-day workweek or a shorter workday.
These options may not always be viable and may have their problems, but before laying off, a company owes it to its people to consider every other alternative, and formulate the best solution.
Tech layoffs to bleed into this year
While we do not know whether this trend will continue or subside during 2023, we do know one thing. We have to be prepared for a wave of layoffs that is still yet to hit. As of last month, Layoffs.fyi had already tracked 170+ companies conducting 55,970 layoffs in 2023.
So recruiters, let’s join arms, distribute those layoff lists like there’s no tomorrow, and help all those in need of a job! :)
Layoffs in the IT industry are becoming more widespread as companies fight to remain competitive in a fast-changing market; many turn to layoffs as a cost-cutting measure. Last year, 1,000 companies including big tech giants and startups, laid off over two lakhs of employees. But first. What are layoffs in the tech business, and how do they impact the industry?
Tech layoffs are the termination of employment for some employees by a technology company. It might happen for various reasons, including financial challenges, market conditions, firm reorganization, or the after-effects of a pandemic. While layoffs are not unique to the IT industry, they are becoming more common as companies look for methods to cut costs while remaining competitive.
The consequences of layoffs in technology may be catastrophic for employees who lose their jobs and the firms forced to make these difficult decisions. Layoffs can result in the loss of skill and expertise and a drop in employee morale and productivity. However, they may be required for businesses to stay afloat in a fast-changing market.
This article will examine the reasons for layoffs in the technology industry, their influence on the industry, and what may be done to reduce their negative impacts. We will also look at the various methods for tracking tech layoffs.
What are tech layoffs?
The term “tech layoff” describes the termination of employees by an organization in the technology industry. A company might do this as part of a restructuring during hard economic times.
In recent times, the tech industry has witnessed a wave of significant layoffs, affecting some of the world’s leading technology companies, including Amazon, Microsoft, Meta (formerly Facebook), Apple, Cisco, SAP, and Sony. These layoffs are a reflection of the broader economic challenges and market adjustments facing the sector, including factors like slowing revenue growth, global economic uncertainties, and the need to streamline operations for efficiency.
Each of these tech giants has announced job cuts for various reasons, though common themes include restructuring efforts to stay competitive and agile, responding to over-hiring during the pandemic when demand for tech services surged, and preparing for a potentially tough economic climate ahead. Despite their dominant positions in the market, these companies are not immune to the economic cycles and technological shifts that influence operational and strategic decisions, including workforce adjustments.
This trend of layoffs in the tech industry underscores the volatile nature of the tech sector, which is often at the mercy of rapid changes in technology, consumer preferences, and the global economy. It also highlights the importance of adaptability and resilience for companies and employees alike in navigating the uncertainties of the tech landscape.
Yes, the market is always uncertain, but why resort to tech layoffs?
Various factors cause tech layoffs, including company strategy changes, market shifts, or financial difficulties. Companies may lay off employees if they need help to generate revenue, shift their focus to new products or services, or automate certain jobs.
In addition, some common reasons could be:
Financial struggles
Currently, the state of the global market is uncertain due to economic recession, ongoing war, and other related phenomena. If a company is experiencing financial difficulties, only sticking to pay cuts may not be helpful—it may need to reduce its workforce to cut costs.
The tech industry is constantly evolving, and companies would have to adjust their workforce to meet changing market conditions. For instance, companies are adopting remote work culture, which surely affects on-premises activity, and companies could do away with some number of tech employees at the backend.
Restructuring
Companies may also lay off employees as part of a greater restructuring effort, such as spinning off a division or consolidating operations.
Automation
With the advancement in technology and automation, some jobs previously done by human labor may be replaced by machines, resulting in layoffs.
Mergers and acquisitions
When two companies merge, there is often overlap in their operations, leading to layoffs as the new company looks to streamline its workforce.
But It’s worth noting that layoffs are not exclusive to the tech industry and can happen in any industry due to uncertainty in the market.
Will layoffs increase in 2025?
It is challenging to estimate the rise or fall of layoffs. The overall state of the economy, the health of certain industries, and the performance of individual companies will play a role in deciding the degree of layoffs in any given year.
But it is also seen that, in the first 15 days of this year, 91 organizations laid off over 24,000 tech workers, and over 1,000 corporations cut down more than 150,000 workers in 2022, according to an Economic Times article.
The COVID-19 pandemic caused a huge economic slowdown and forced several businesses to downsize their employees. However, some businesses rehired or expanded their personnel when the world began to recover.
So, given the current level of economic uncertainty, predicting how the situation will unfold is difficult.
What types of companies are prone to tech layoffs?
Tech layoffs can occur in organizations of all sizes and various areas.
Following are some examples of companies that have experienced tech layoffs in the past:
Large tech firms
Companies such as IBM, Microsoft, Twitter, Better.com, Alibaba, and HP have all experienced layoffs in recent years as part of restructuring initiatives or cost-cutting measures.
Market scenarios are still being determined after Elon Musk’s decision to lay off employees. Along with tech giants, some smaller companies and startups have also been affected by layoffs.
Startups
Because they frequently work with limited resources, startups may be forced to lay off staff if they cannot get further funding or need to pivot due to market downfall.
Small and medium-sized businesses
Small and medium-sized businesses face layoffs due to high competition or if the products/services they offer are no longer in demand.
Companies in certain industries
Some sectors of the technological industry, such as the semiconductor industry or automotive industry, may be more prone to layoffs than others.
Companies that lean on government funding
Companies that rely significantly on government contracts may face layoffs if the government cuts technology spending or contracts are not renewed.
How to track tech layoffs?
You can’t stop tech company layoffs, but you should be keeping track of them. We, HR professionals and recruiters, can also lend a helping hand in these tough times by circulating “layoff lists” across social media sites like LinkedIn and Twitter to help people land jobs quicker. Firefish Software put together a master list of sources to find fresh talent during the layoff period.
Because not all layoffs are publicly disclosed, tracking tech industry layoffs can be challenging, and some may go undetected. There are several ways to keep track of tech industry layoffs:
In addition, they aid in identifying trends in layoffs within the tech industry. It can reveal which industries are seeing the most layoffs and which companies are the most affected.
Companies can use layoff trackers as an early warning system and compare their performance to that of other companies in their field.
News articles
Because many news sites cover tech layoffs as they happen, keeping a watch on technology sector stories can provide insight into which organizations are laying off employees and how many individuals have been affected.
Social media
Organizations and employees frequently publish information about layoffs in tech on social media platforms; thus, monitoring companies’ social media accounts or following key hashtags can provide real-time updates regarding layoffs.
Online forums and communities
There are online forums and communities dedicated to discussing tech industry news, and they can be an excellent source of layoff information.
Government reports
Government agencies such as the Bureau of Labor Statistics (BLS) publish data on layoffs and unemployment, which can provide a more comprehensive picture of the technology industry’s status.
How do companies reduce tech layoffs?
Layoffs in tech are hard – for the employee who is losing their job, the recruiter or HR professional who is tasked with informing them, and the company itself. So, how can we aim to avoid layoffs? Here are some ways to minimize resorting to letting people go:
Salary reductions
Instead of laying off employees, businesses can lower the salaries or wages of all employees. It can be accomplished by instituting compensation cuts or salary freezes.
Implementing a hiring freeze
Businesses can halt employing new personnel to cut costs. It can be a short-term solution until the company’s financial situation improves.
Businesses might search for ways to cut or remove non-essential expenses such as travel, training, and office expenses.
Reducing working hours
Companies can reduce employee working hours to save money, such as implementing a four-day workweek or a shorter workday.
These options may not always be viable and may have their problems, but before laying off, a company owes it to its people to consider every other alternative, and formulate the best solution.
Tech layoffs to bleed into this year
While we do not know whether this trend will continue or subside during 2025, we do know one thing. We have to be prepared for a wave of layoffs that is still yet to hit. As of last month, Layoffs.fyi had already tracked 170+ companies conducting 55,970 layoffs in 2025.
So recruiters, let’s join arms, distribute those layoff lists like there’s no tomorrow, and help all those in need of a job! 🙂