Despite Many Layoffs, Job Demand in the Technology Field is Still High

Technology professionals still have their own opportunities, including working outside of Indonesia.

The following article was translated using both Microsoft Azure Open AI and Google Translation AI. The original article can be found in Meski Banyak PHK, Permintaan Kerja di Bidang Teknologi Masih Tinggi

MARINA EKATARI

Technology companies are beginning to feel the impact of the economic contraction. Apple even experienced a nearly 11 percent drop in profits in the second quarter of 2022 compared to the same period last year. The economic situation, as well as supply chain disruptions from China, caused the decline in profits for the technology company.

JAKARTA, KOMPAS  — Technology companies from giants to smaller scales have again announced layoffs. The latest layoffs announcements came from Google and Amazon.

However, this phenomenon does not automatically make digital technology professionals less in demand in the job market. They still have opportunities to be employed in non-technology industries that are undergoing digital transformation domestically or abroad.

Co-Founder and Group General Manager Glints Steve Sutanto, Saturday (20/1/2024), in Jakarta, said that his party anticipates a correction for technology companies in the first half of 2024. Although market is uncertain, technology companies are expected to continue hiring for revenue-generating roles, such as business development and sales.

"However, the focus on mass recruitment will decrease and prioritize profitability," said Steve on Saturday (20/1/2024) in Jakarta. For candidates who can demonstrate adaptability and willingness to take on more responsibilities, they will have added value."

KOMPAS

Economic dynamics force technology companies to reduce employees.

According to the latest report from Glints entitled "What to Expect in 2024: Southeast Asia Talent Trends and Outlook", throughout 2023, a number of technology-related industries in Southeast Asia were observed to still be searching for and recruiting technology professionals, such as the cybersecurity industry, cloud computing sector, as well as information technology services and consulting. In addition, professionals with a background in artificial intelligence engineering are in demand by the retail industry, which is currently focusing on efficiency and improving customer experience.

Also read: Lazada Reportedly Layoffs Again

Professionals in the field of full-stack developers or developers who build front endand back end pages, according to the Glints report, still have a high chance of being recruited across borders country. Glints found that more and more companies in Singapore are recruiting full-stack developers from Indonesia and Vietnam.

Apart from that, Glints in its report mentions the trend of teams and companies without borders. More than 73 percent of technology startups in Southeast Asia recruit workers outside their home countries.

The increase in the number of multinational teams is expected to be limitless by 2023 and will further increase in 2024 as Southeast Asian companies seek to expand their reach at the regional level. In order to save costs, employers have become more flexible and are recruiting talented workers outside of their main office.

The Glints report is the result of research on nearly 70,000 job vacancies, recruiter interviews, and industry surveys in Southeast Asia.

In January 2024, a total of 58 technology companies have laid off 7,785 employees, according to Layoffs.fyi. This layoffs are a continuation of the strategic tightening measures implemented the previous year. In 2023, technology sector companies have laid off more than 260,000 workers.

Also read: Technology Company Layoffs Amid the Crowds of the 2024 Election

KOMPAS/IQBAL BASYARI

Application developer AIDO held discussions at the Apple Developer Academy located at Ciputra University in Surabaya, East Java, on August 7, 2019.

Lack

Co-Founder and Managing Partner of East Ventures, Willson Cuaca, believes that expertise in digital technology will always be in demand. Moreover, there is still a shortage of professionals who are skilled in digital technology, especially in Indonesia.

According to McKinsey's research, Indonesia is projected to face a shortage of 9 million skilled workers in the technology field by 2030.

According to him, the layoffs carried out by giant technology companies were not due to the tech winter factor. Tech winter is a condition of increasing capital costs that forces investors to tighten their investment selection to maximize investment returns and reduce risk. They are generally already cash rich. If they decide to lay off, it is because they want to try to remain relevant.

"With the global situation being uncertain, every company regardless of industry sector must strive to remain relevant," said Willson.

Permata Bank Chief Economist Josua Pardede views the layoff phenomenon currently occurring in technology companies as an effort to focus on business lines that can make them profitable. For technology startups or start ups, the global economic slowdown and the trend of higher for longer or global interest rates remaining at high levels for longer periods contribute to reducing funding flows to start up.

With the uncertain global situation, all companies regardless of their industry sector must strive to stay relevant.

He believes that this phenomenon is temporary. The potential for business development in the technology field is still huge in the future, especially in Indonesia.

"We believe that professionals in the technology field still have their own opportunities, including to work outside of Indonesia. Moreover, we assess that with the rapid development of technology in the future, job opportunities in the technology sector will still be quite well-preserved," said Josua.

Also read: Technology Job Market Turbulence