The reckoning is here. Once a safe harbor, Big Tech has finally also gone full out on layoffs. Is this a structural shift to employment in Tech? Will the subsequent talent spillover be great for start-ups and entrepreneurship? Will it positively affect other industries?

In this episode of Tech Deciphered, we will answer these and other questions in a deep discussion on the Global Tech Labor reset.

Navigation:

1. Intro (01:34 )


2. Layoffs & Restructuring


3. Shifts in Compensation & Perks


4. Rise of Fractional, Freelance, and Solopreneur Work


5. Talent Spillover to Other Sectors


6. Geography & Culture Shifts


7. Conclusion

Our co-hosts:

• Bertrand Schmitt, Entrepreneur in Residence at Red River West, co-founder of App Annie / Data.ai, business angel, advisor to startups and VC funds, @bschmitt


• Nuno Goncalves Pedro, Investor, Managing Partner, Founder at Chamaeleon, @ngpedro

Our show: Tech DECIPHERED brings you the Entrepreneur and Investor views on Big Tech, VC and Start-up news, opinion pieces and research. We decipher their meaning, and add inside knowledge and context. Being nerds, we also discuss the latest gadgets and pop culture news

Subscribe To Our Podcast

Nuno Goncalves Pedro

Welcome to Episode 66 of Tech DECIPHERED. Today, we’ll talk about the global labour tech reset. Tech and big tech, which seemed immune to any lay-offs, seems now to be under fire. Massive lay-offs over the last 2.5 years, a lot of discussion around the importance of having a computer science, computer engineering background, and so what seemed to be a safe haven for any graduate is now under stress.

Today, we will discuss the structural perspective on what’s happening in the market, if this is a long-term trend or not, what has led us to this, and what is next. We’ll talk about the rise of fractional freelance and solopreneur work, as well as talk about talent spillovers, and some of the usual geographical dynamics around the space. Bertrand, a huge shift in tech.

Bertrand Schmitt

Yes, definitely. It’s pretty big. I think it started probably around 2022, once we got some changing interest rates that have a pretty massive impact in stock prices for a lot of companies. At that time, a lot of companies decided, and usually under some pressure, that it was time to be more efficient, to generate more cash. Yes, you want to grow, but not grow at all cost. You have to go efficiently.

That’s when we started to see some share price going down and step by step, quarter after quarter. Some change in attitude with a lot of big tech and that has created some impact in term of lay-off from different parts of the business, from the sales team to the DNA, to even engineering R&D.

What is also been happening since 2022, 2023 is a change of focus. A lot of focus is being put in AI. A lot of investment in CapEx is going to AI. At some point, if you want to keep doing all this investing, investments, you might have to get some other part of the business in order to create additional savings to do all the spend you can in AI. There has been more recently a switch. It’s not