The Next Tech Revolt: Why Tech Giants Should Fear the 500,000+ Workers They Let Go
Smart, highly skilled, motivated, p***d off workers are coming for their former employer’s business
The tech worker layoff tsunami continues with 108 591 layoffs in 2024 according to layoffs.fyi latest numbers. The total number of layoffs since 2022 reached 537 040 at last count. Companies like Tesla, Google, Meta, Amazon, Microsoft, SAP, Paypal, Indeed, Wayfair, SalesForce or even LinkedIn have laid off employees.
Several factors have contributed to the wave of tech layoffs in 2024:
- Economic Uncertainty: Global economic conditions have created a challenging environment for tech companies, leading to reduced budgets and the need to streamline operations.
- Shifts in Business Strategy: Companies are increasingly focusing on core areas of growth and innovation, resulting in the divestiture of non-core business units and associated workforce reductions.
- Technological Advancements:Automation and AI have reduced the need for certain job roles, contributing to workforce reductions.
Tech workers launching their business
In the meantime you have a very large number of smart, highly skilled and motivated workers looking for a source of income.
According to LinkedIn and Zapier studies 12%-25% of workers will go on their own creating a company or becoming freelancers.
This means the expertise and experience built over years will be used to develop new applications and client solutions to fill un-met customer needs as new competitors to their former employer.
These workers are bad news for tech companies that just laid them off because they are:
-Highly skilled and knowledgeable of their former employer’s business and client’s unfulfilled needs.
-P***d off that they are on the street while their managers are probably still around and unable to do THEIR FORMER JOB.
- Have access to AI and SaaS tools making it much easier to start a business or go on their own as solopreneurs without a need for funding and a large team.
Google Trends: side hustles and solopreneurs
I love Google Trends because if you listen carefully it will talk to you. It tells you what people are thinking through their searches, intents, interests and sometimes aspirations.
There has been a steady increase in Google searches for Side hustle and Additional Income for the past 10 years. The quest for Side hustles is not as recent as we may think. It peaked once in April 2022 and January 2023 as tech layoffs were ramping up.
But what I find even more interesting are concurrent trends like:
Multiple trends that follow the same trajectory may not always have the same causes but in this case it makes a lot of sense.
Suppose that 500 000 laid off professionals from tech jobs are now on the street looking at their next move.
Suppose that they are p***d off for losing their job for no other reason than because the company “over hired”.
The vast majority are competent and motivated employees that have skills and time on their hands.
They have had time to ponder the meaning of corporate life…in between Netflix episodes…and they have concluded that they want to:
Find a side hustle that will turn into a full time business and provide financial independence. Earning some F**k you money.
Create a remote job better suited to their lifestyle without having to deal with the ridiculous RTO policy of their former employer.
A side hustle is the ultimate Remote job with financial and corporate independence.
According to Google Trends data, there has been a noticeable increase in searches related to solopreneurship and new business ideas in 2024. Key statistics include:
- “Solopreneur” Searches: The term “solopreneur” has seen a significant rise in search interest, indicating a growing curiosity and engagement with the concept of single-person businesses.
- “New Business Ideas” Searches: Searches for “new business ideas” have also surged, reflecting the interest of laid-off tech professionals and other aspiring entrepreneurs in exploring innovative business opportunities.
- Regional Trends: The search interest is particularly high in regions with a strong tech presence, such as California and New York, suggesting that former employees from tech hubs are actively seeking entrepreneurial paths.
Small business statistics in 2024
- There are 33.3 million small businesses in the US
- Small businesses account for 64% of new jobs annually and every year, they create 1.5 million jobs in the US
- 99.9% of businesses in the US are small businesses (SBA 2023 Small Business Profile)
Only .01% of businesses within America are not considered small businesses. Of the majority, 98% have fewer than 100 employees and 89% have fewer than 20 workers.
These small businesses give jobs to more than 61.2M Americans. This accounts for 46.8% of the total workers nationwide.
Globally, 90% of all companies are small businesses and they account for 50% of jobs There are 400 million small businesses in the world
Factors Driving the Trends
Several factors are contributing to the rise of solopreneurs and new business ventures among laid-off tech professionals:
- Skill Set and Experience: Many laid-off employees possess advanced technical skills and industry experience, making them well-equipped to start their own businesses. And compete with their former employer.
- Access to Resources: The availability of online resources, AI tools, and platforms for business creation and management has made it easier for individuals to launch and run their own ventures.
- Market Opportunities: The dynamic nature of the tech industry presents numerous opportunities for innovation and disruption, encouraging former employees to explore new business ideas.
- Supportive Ecosystem: The presence of startup incubators, accelerators, and networking groups provides a supportive ecosystem for new entrepreneurs.
The year 2024 has witnessed significant layoffs across major technology companies, including giants like Meta and Google. These layoffs have resulted in a substantial number of highly skilled professionals entering the job market, many of whom are now exploring entrepreneurial ventures. The layoffs are part of broader cost-cutting measures and restructuring efforts within these companies, driven by various factors such as economic uncertainties and shifts in business strategies.
Resurgence of Aspiring Entrepreneurs
The wave of layoffs has led to a resurgence of aspiring entrepreneurs. Many former tech employees are leveraging their skills and experience to start their own businesses.
This trend is particularly notable among solopreneurs, who are individuals running their businesses single-handedly. The entrepreneurial spirit among these professionals is fueled by their desire for independence, innovation, and the opportunity to capitalize on emerging market trends.
The tech layoffs of 2024 have inadvertently sparked a wave of entrepreneurial activity, with many former tech employees turning to solopreneurship and new business ventures.
The increase in Google Trends searches for solopreneurship and new business ideas underscores this trend, highlighting the potential for growth and innovation in the entrepreneurial landscape.
As these aspiring entrepreneurs navigate their new paths, they contribute to a vibrant and evolving business ecosystem.
Google, Meta, Amazon beware! Your next competitor may already be developing a solution to fill the gap with your product offering.