Why Tech Jobs Are Declining and Where New Ones Are Growing

With tech layoffs making headlines, it’s natural to wonder what’s happening to a once-promising career path. But what exactly is driving these changes? And, perhaps more importantly, where are new tech roles still growing?

To make sense of it all, we spoke with leading HR experts and top tech talents who are experiencing these changes firsthand.

Reading this article will not only give you insight into current job market trends, but you'll discover what skills are most in demand, the sectors still hiring and how companies can make the most out of tech advancements.

Why Are Tech Jobs Declining?

1. Economic Strain:

According to Keri Tietjen Smith, an HR and Talent Acquisition expert with over 20 years of experience, economic pressures are a significant factor.

“The pandemic in 2020 was a major disruption, setting off a chain of economic challenges, including high inflation and increased borrowing costs due to high interest rates. These pressures have made it difficult for companies to maintain their workforce as they once did,” she explains.

With experience from living in nine countries and visiting over forty, Keri brings a unique global perspective to workforce challenges. She’s known for building strong teams and coaching Gen Z as they navigate today’s workplace expectations.

Similarly, Fatomi Abiodun, a Software Engineer at MTN with four years of experience agrees global economic shifts are reshaping the tech sector.

“Larger economic crises, along with advancements in automation and the global recession, play a significant role in layoffs and restructuring within tech companies,” he says.

Fatomi, who is also involved in the staffing industry and has a startup in progress, has a unique view of the tech job market.

Ravnoor Kaur, a Talent Acquisition professional with over ten years of experience in tech, SaaS, finance, blockchain and Web3, adds that these economic challenges impact companies at every stage.

“Even well-established businesses are becoming more cautious about expansion, and many startups are finding it challenging to maintain larger teams due to the present economic situation, which includes tighter funding and budget limits. Businesses are being prompted by these considerations to reconsider their organisational structures and give priority to responsibilities that are in line with their long-term objectives.” - Ravnoor Kaur.

1. Return to Office Mandate (Post-Pandemic):

Russell Emekoba, a Senior Software Engineer with over a decade of experience, is a full-stack engineer at Topset. He was a tutor for the ALX | Udacity developer training program, combining his tech skills with a solid teaching background.

"During the pandemic, companies had to switch to remote work, which boosted the need for technology to keep teams connected and productive. This created many new tech roles to support remote work. But as employees returned to the office after the pandemic, the demand for certain tech roles decreased," Russell explains. "With fewer teams needing remote support, companies began to cut back on these tech positions, leading to a drop in tech jobs."- Russell Emekoba.

1. AI Disruption:

AI is evolving fast, but is it causing tech job losses or just changing the roles we need?

"In 2023, I faced my first layoff, which turned my world upside down. This experience fueled my passion to start my gig, where I’ve been helping businesses and job seekers through these challenging times." - Ravnoor Kaur.

Ravnoor sees two main factors regarding AI: “It’s a combination of rapidly advancing AI and shifting economic dynamics. Instead of entirely eliminating opportunities, AI is helping businesses streamline processes, which reshapes the workforce’s needs.”

Keri Tietjen Smith noted, "Without clear guidelines on responsible and ethical AI usage, companies often struggle to integrate this powerful technology effectively. AI has the potential to revolutionize HR and Recruiting by enhancing team capabilities rather than replacing people.”

Fehintola Kehinde, a Senior Recruitment Specialist with six years in tech recruitment, has been key in helping companies find and attract top talent, and in her words:

“AI is transforming workflows, reducing the need for big tech teams. Some companies are now outsourcing to consulting firms rather than maintaining in-house tech teams. This approach allows them to access specialized skills without the commitment and overhead of full-time employees.”

1. Cost-Cutting:

For many companies, cost-cutting is a necessary part of staying competitive.

"Some companies have a culture where, once you reach a certain level and your pay increases, they look to replace you with someone more junior to save costs. This is a common approach, even with employees who perform well." - Fatomi Abiodun.

But, as Fatomi points out, replacing experienced employees with lower-cost junior staff can send a message that loyalty and performance aren’t valued.

“Companies are cutting costs, so they prefer versatile roles where fewer people can handle more responsibilities." - Fehintola Kehinde.

In light of these causes, let’s talk about…

Where New Tech Roles Are Growing:

So, which sectors are hiring?

1. Kelechi Uma, a Senior Front-End Engineer at Nomba, has nearly ten years of experience as a tech talent. He’s seen the tech space evolve and has grown with it.

"There are many areas to explore in tech; web development, mobile engineering, product management, product design, DevOps, data analytics, and cybersecurity," - Kelechi Uma.

1. Grace Alfred, a Senior Talent Partner for technical roles at CareerBuddy with ten years of experience, highlights fintech as a particularly promising sector.

“Fintech keeps creating new roles,” she explains. Grace sees payment gateway solutions as a key area of growth, noting companies like CRBs, Kurapi and Accelerix that need tech talent to support payment processing.

1. Russell Emekoba highlighted several tech areas with promising job opportunities for those looking to advance their careers. He majorly pointed out AI, social media, DevOps and cybersecurity as strong sectors that promise growth.

2. For new graduates or young professionals, Fatomi Abiodun recommends focusing on high-demand fields. “AI, data science, data engineering and cybersecurity are growing fast.”

3. "With more companies migrating to cloud platforms, the demand for cloud architects is growing. Cybersecurity skills and expertise in AI development, especially in data science and machine learning, are also in high demand." - Fehintola Kehinde.

If you're a job seeker, staying open and adaptable to these new tech fields can help you keep growing in your career.

How to Stand Out as a Talent in the Tech Space

Today’s tech industry is highly competitive, with hundreds applying for the same roles.

Kelechi and Kehinde stressed that companies still need talented techies but applicants must be exceptional to get noticed.

1. Become a Problem Solver: "In tech, solving problems means improving software, creating solutions, reducing bugs, and launching new features," - Kelechi Uma. He emphasized that companies want problem-solvers who can help them grow, making these skills essential to stand out.

Keri shared that the best opportunities are for professionals who can use and make the most of new tech solutions, making these roles crucial in today’s market.

“Organizations are replacing outdated processes and tools with innovative solutions that require employees who are not just tech-savvy but also adept at leveraging new technologies to drive growth and efficiency.” - Keri Smith.

1. Personal Brand and Freelance Work: Fatomi encourages tech talent to grow their personal brand as this helps keep your career options flexible.

2. Networking and Referrals: Fatomi highlighted that networking is essential. Many jobs get filled through referrals and professional connections, often before being posted publicly.

3. Equip Yourself for Remote Productivity: Russell stressed the importance of having the right tools and backup options to stay productive, especially if you work remotely. He advises investing in a dependable setup. For internet connectivity, he recommends Starlink. This way you can meet deadlines and stay connected to teams, even when network issues arise.

4. Merge Conventional Skills: If you're a tech professional who can blend traditional skills with modern solutions, your expertise is highly valuable and still in demand.

“As companies embrace this transformation, they’re actively seeking talent that can contribute to building a seamless bridge between traditional practices and futuristic solutions.” - Keri Smith.

“Tech talents shouldn’t limit themselves to a single niche. For example, a backend developer might find fewer opportunities compared to a full-stack developer. Tech professionals who haven’t expanded their skill set, especially in areas like cloud computing and DevOps, are finding it hard to stay competitive. Businesses are moving toward cloud-based infrastructures, leaving behind those who only have on-premise experience.” - Fehintola Kehinde.

How Companies Can Navigate Today’s Tech Employment Landscape

1. Building a Great Company Culture that is DEI-focused: Fatomi stated a critical issue for many tech professionals: a company culture that doesn’t align with their personal values or expectations. Diversity hires may face environments that aren't fully inclusive, causing some to resign.

When your company’s culture doesn’t support all its employees, it will result in high turnover and loss of top talent.

1. Workplace Flexibility and Employee Well-being: Fatomi recalls how a previous employer's inflexibility during a major life event led him to resign, showing how a lack of support can hurt retention.

Grace adds that toxic work environments are a major reason for job loss in tech, with many professionals leaving for healthier, more supportive workplaces.

1. Remote Work Options to Attract Talent: As a company, Russell suggests offering remote work options to attract and retain top talent.

"I had to decline an offer that, while offering attractive pay, required me to be on-site more often than usual. Working from home has so many advantages that I can’t easily give up, even for a higher salary. Companies should consider remote options to attract and retain top talent instead of missing out on great candidates."

1. Tapping into the Talent Pool Amid Job Losses;

Despite job cuts, Keri sees this as an opportunity for your company. With a surplus of talented professionals available, smart companies can strengthen their teams. Keri also helps companies navigate these changes by implementing strategies like integrating AI and flexible work policies to make the most of this shift.

Final Words

Undeniably, there’s a decline in tech jobs, affecting both companies and job seekers. This may result in new tech roles and strategies for companies to adopt. However, there will always be a constant demand for tech talent.

“The landscape is evolving, and those who are prepared to navigate this change will find exciting opportunities to grow, innovate, and lead in the tech industry.” - Keri Tietjen Smith,

"Technical skills alone aren’t enough. Tech professionals should also develop cross-functional skills, like communication, project management and business strategy, to make themselves truly indispensable." - Fehintola Kehinde.