Tech Is Not Off to a Good Start in 2024

Here we go again.

In 2023, thousands of employees were let go from their jobs. And, in the early days of January 2024, it appears the tech industry is not off to a good start and is already facing challenges.

In 2023, I lost my job. And, as I continue my job search, I've thought about how this will affect peoples' jobs in 2024.

Here are some things I've been thinking about a lot:

1. Layoffs: Job cuts across major tech companies like Google, Amazon, and Twitch have shaken the industry, raising concerns about economic instability and the future of certain sectors. What will this look like for the tech industry in 2, 4, or 5 years from now? Will AI disrupt our jobs? As experts have repeatedly stated, AI will bring new jobs to the market; however, until people are trained to do those new jobs, people will be displaced and unemployed. According to this report by CNN, nearly 80% of women's jobs could be disrupted, and automated by AI. Reskilling is going to be of upmost importance for companies if they want to avoid the need to wait to recruit someone new or have a role continue to remain open for months or even years. Continuous learning and adaptation will be crucial for individuals. Additionally, companies need to start thinking about training their employees now in order for them to thrive and keep up with their competition in the evolving tech landscape.

2. Economic uncertainty: Global economic slowdowns and inflation create financial pressures for tech companies, leading to cost-cutting measures and tighter hiring practices. According to the World Economic Forum, "more than half (56%) of chief economists expect the global economy to weaken in 2024, with seven in 10 saying the pace of geoeconomic fragmentation will continue to accelerate."

3. Geopolitical tensions: The ongoing war between Ukraine and Russian as well as the continued strained relations between certain countries will disrupt supply chains and impact global tech markets. According to the World Economic Forum, economists believe that "the US Federal Reserve, will start lowering interest rates at some point in 2024; however, "80% of economists surveyed believe we are going to face stock-market volatility and economic uncertainty."

4. Regulation: Increasing scrutiny from governments and regulatory bodies regarding data privacy, antitrust concerns, and the ethical implications of AI could lead to compliance challenges and slow down innovation. Additionally, the US will have major political elections including the presidential election slated for November 2024.

Ultimately, whether we call it a "rough start" or a period of "adjustment," 2024 has certainly given everyone a lot to think about. 

It will be interesting to see how the industry responds and navigates these challenges in the months and years to come. And, only time will tell.