Navigating turbulent times: a deep dive into developer challenges amidst layoffs
Tags: techlayoffs, developers
Published: 2024-01-17 09:31:20

The tech industry's relentless pursuit of innovation through creative destruction has reshaped the landscape, ushering in new possibilities and billion-dollar acquisitions. However, this dynamism has a flip side, especially during challenging times. In this blog post, we explore the impact of recent layoffs in the tech sector on developers, drawing insights from [SlashData's Q3 2023 Developer Nation survey](https://www.developernation.net/resources/reports/state-of-the-developer-nation-25th-edition-q3-20231).

**The Ripple Effect of Layoffs**
Recent global financial uncertainty led to a significant number of layoffs, with a staggering 45% of developers directly or indirectly affected. In-depth analysis reveals that nearly a quarter of professional developers found themselves laid off, shedding light on the magnitude of the challenge.

**Balancing Act**
It seems that employers were more willing to reduce headcount than to reduce benefits – 30% of developers were either laid off or know someone who was, whilst 22% either lost salary/benefits or didn’t get a raise. This shows the depth of the cuts needed for organisations to remain profitable – redundancies save on bonuses, benefits, and overheads, in addition to salaries.

**Career Crossroads**
Interestingly, as a result of this situation, we find that 12% of developers are considering changing career paths. According to our survey data, Industrial IoT (21%) and VR (18%) are the hardest-hit sectors. Given that many VR developers get into the profession due to their passion and evangelism for the technology, this must be particularly distressing for them. Even in the AI/ML domain, 16% of developers contemplate a shift, emphasizing the need for adaptability in the face of evolving industry landscapes.

![Image description](https://dev-to-uploads.s3.amazonaws.com/uploads/articles/u6vyg2ij0b8o8vm9ejlr.png)
**Nearly half of developers have been affected by layoffs, and three in ten have been laid off or know someone who was**
_* % of professional developers working in organisations of 2 or more employees_
Sample Size: Q3 2023 (n=4,878)



**Impact Across Company Sizes**
Contrary to expectations, developers at larger enterprises (1,000 or more employees) were less affected by layoffs, with 62% remaining unscathed. This challenges the narrative of headline-grabbing layoffs at tech giants, shedding light on the silent struggles faced by smaller organizations.


![Image description](https://dev-to-uploads.s3.amazonaws.com/uploads/articles/ktdc5rapcc9dapeoo653.png)
**Developers at large enterprises suffered the least from layoffs, but the effects were felt at organisations of all sizes**
_* % of developers working for organisations of each size_
Sample Size: Q3 2023 (n=4,876)



**Decision-Makers Bear the Brunt**
Developers in senior roles have been hit the hardest by the negative impacts of the layoffs, proportionately, at least. Under half of the decision-makers* remain unaffected as of Q3 2023 – compared to 64% of those not involved in tool selection decisions. Furthermore, more than a third (37%) of decision-makers were either laid off themselves or knew someone else who was. Just 24% of non-decision-makers say the same. 

Decision-makers – with their commensurately higher salaries – were also nearly twice as likely as those not involved in tool selection decisions to feel the financial squeeze from the situation, with 27% experiencing reduced salaries, bonuses, and/or benefits, vs. 14% of those not involved in tool purchasing decisions.


![Image description](https://dev-to-uploads.s3.amazonaws.com/uploads/articles/w9cqjr2nmt5sm5p5ynyq.png)
**Decision-makers bore the brunt of the negative impacts – they are twice as likely to have been laid off as those not involved in tool selection decisions**
_* % of professional developers working in organisations of 2 or more employees that have each level of influence on tool purchasing decisions_
Sample Size: Q3 2023 (n=3,998)


**Experience and Education**
The most experienced developers suffered the fewest ill-effects from the layoffs. No matter how you measure it, they are the least likely to have been laid off, know someone who was laid off, or to have experienced reduced salaries, bonuses and/or benefits. Subsequently, just 6% say that they are considering changing career paths. Clearly, these developers have a greater sunk cost to consider than the least experienced – those with two or fewer years under their belts – but this data demonstrates just how essential highly experienced developers are to the smooth running of an organisation.

In fact, being highly experienced appears to mitigate some of the negative effects experienced by decision-makers. For example, 68% of decision-makers with 11+ years of experience saw no negative effects from the layoffs, compared to 39% of those with 3-10 years under their belts. Although decision-makers are the most likely to have experienced negative impacts from layoffs, organisations still recognise the value of having experienced developers in key positions.


![Image description](https://dev-to-uploads.s3.amazonaws.com/uploads/articles/a8gkztzlzg4wddvblb0t.png)
**The most experienced developers are the least affected by the layoffs**
_* % of professional developers in organisations of 2 or more employees who have each level of experience in software development_
Sample Size: Q3 2023 (n=4,878)


Looking at expertise from another angle – developers’ level of education, we can see that bootcamp-educated developers are at a significant disadvantage, even over those who don’t know how to code. Just 38% of bootcamp-educated developers suffered no ill effects from recent layoffs, and 43% were either laid off or know someone who was. This data indicates that:

1. Some bootcamps don’t equip developers with sufficient skills to weather storms – these developers are often the first to go, and;
2. Bootcamp-educated developers have a large network of similarly skilled friends and colleagues who also suffered from these layoffs.


![Image description](https://dev-to-uploads.s3.amazonaws.com/uploads/articles/0mldibkupatxncnlecqe.png)
**Developers who learnt to code at a developer boot camps were the most at risk from layoffs**
_* % of professional developers at organisations of 2 or more employees_
Sample Size: Q3 2023 (n=4,802)

Navigating uncertainties in the tech sector requires resilience and adaptability. Layoffs have left an indelible mark on developers, urging them to reassess their career paths. As the industry continues to evolve, the key lies in continuous skill-building and staying attuned to the ever-changing tech landscape. SlashData's Developer Nation community stands as a beacon, offering insights, content, and expert access to empower developers on their journey. Stay tuned to our socials for updates on the next virtual meetup. Together, let's embrace the challenges and opportunities that lie ahead in the dynamic world of tech.