What’s common to Google, Microsoft, Meta (Facebook), Amazon and Twitter? Well, apart from being some of the biggest technology companies in the world, they have one more thing in common. They all recently fired a significant portion of their employees. Not just them, across the tech sector, lakhs of competent, qualified workers have lost their jobs. These were some the most coveted jobs in the world. Big tech companies often topped the ‘Best places to work’ surveys. These companies offered growth, cool offices, free lunches, high salaries and stock options. They gave people perks like bring your pets to work, work from home, work from beach, unlimited vacations and offsites in exotic locations. And yet, in the past few months, it all changed. Employees, from those who have worked in the company for decades to new campus recruits have all been asked to leave.
Back home, the story is similar. As per media reports, here’s just a few Indian companies that laid-off people: Dunzo, Sharechat, Rebel Foods, Captain Fresh, BharatAgri, Ola, DeHaat, Skit.ai, Coin DCX, LEAD School, Bounce, Cashfree, and Swiggy.
There will be more job cuts coming too. Welcome to the free-market economy. While we often discuss the benefits of economic liberalization and encourgaing the private sector, we seldom discuss the dark side. That is, the private sector is brutal and emotionless. It is driven by profits and growth, and a return for their shareholders. Sure, private companies do try and be ‘good.’ They can be caring and compassionate towards their employees – but with an important caveat – only in good times. When business is booming, benefits soar too, as does the love and caring. However, when things turn south and the company performance gets under pressure, it will do what it takes to fix it, including firing you. Sorry.
There are two main reasons why this is happening in the normally thriving tech sector right now. One, the Covid led tech boom was shorter than people thought. Tech companies over-hired in the period, thinking the world will forever be limited to online deliveries and virtual meetings. They were wrong.
Two, the startup sector boom phase is over, where revenues and growth mattered more than what eventually matters – profits and cashflows. In that phase, companies were incentivized to just grow at all costs, which meant hiring more and more people. Today, the sentiment has changed. Interest rates are higher, and people investing money now demand profits from these companies. Hence, cost cuts require cutting down people. It all makes sense logically. It’s super-hard emotionally if you are one of the laid-off workers.
Somehow, the value of a government job, seen as more secure than private jobs has increased. Maybe that is why crores of Indians still aspire to get a government job.
In such a scenario, what is one to do? Is the private sector heartless? A mercenary place where you can be dispensed at will? Well, partially, yes and yes. Private sector companies do ultimately serve their shareholders. In fact, since the layoffs have been announced, big-tech share prices are higher, making the shareholders richer. However, the private sector can and does pay employees extremely well over the long-term. For those who survived the layoffs, they still make salaries that could be upto five to ten times that in equivalent government jobs. For those laid off too, there are good chances of getting new jobs, provided they have the patience and preparation to wait and keep applying at other places. In general, here’s how to navigate a private sector career.
- Imagine your salary to be half of what it is and save the rest – You get paid well in private sector. You can also be laid off. Hence, it is best to save massive amounts of money for that scenario, at least until you have built a nest egg. Depending on your age, expenses, family members – you could need a nest egg of one to two years to survive any potential layoff period until you get a new job.
- Don’t believe any one sector is the best – business is cyclical, and that applies to all sectors. Companies do well at certain times and not in others. No company or sector in the world has a guarantee of success through its life. Tech was hot. It isn’t so much right now. Finance and real-estate have seen similar hot and cold times. There’s nothing wrong in switching sectors if needed. Times change, you should too. Go wide in your job search if needed.
- Don’t get emotionally attached to your job – Falling in love with your job in the private sector is like falling in love with your digital assistant like Siri and Alexa. It’s not real. Those company picnics, offsites and retreats aren’t because everyone loves one another. It’s only because times are good. Times turn, they will get rid of them. And you, if needed. Use the private sector job to make money, that’s it. Invest emotions in your own people – family and friends. That’s what finally matters. Have you ever heard anyone on their deathbed saying – ‘oh, I wish I had spent more time in office?’ Or ‘oh, I wish had made a better powerpoint presentation.’
Private sector layoffs are a reality as much as eye-popping private sector pay packages. The Gita emphasizes the power of detachment in life. The one place where detachment can really come in handy is towards your glamorous, cushy, aspirational multi-national job. They will remove you if needed. Always remember that, enjoy the good times and be prepared for the bad times.