Technological Shifts and Their Role in IT Sector Layoffs

Once a dream job, the IT (Information technology) sector is now having massive layoffs. This change is not just due to economic factors.

Technological advancements are reshaping the workforce. In 2024, the industry faces a new reality. Automation, artificial intelligence (AI), and other innovations are causing both job creation and job loss.

Let’s understand how these technological shifts are contributing to IT layoffs. We will also explore strategies for adapting to such changes.

The Impact of Technological Advancements

Technological advancements are bringing both opportunities and challenges in the IT sector. Automation, AI, and other emerging technologies are changing how businesses operate. Therefore, there is a change in the skills they require which impacts job roles and the workforce.

1. Automation and Its Consequences

Automation means using technology to improve work efficiency and reduce human intervention in tasks or projects. In some industries, it has replaced human-led tasks like manufacturing and stock-keeping. In other industries, it has taken over customer management services.

• Automation in Manufacturing

Automation changes manufacturing floors. Robots perform tasks faster and with fewer errors than humans, reducing manufacturing jobs but increasing the need for robot technicians on the floor. Automation also improves quality control in manufacturing units. It conducts inspections accurately, improves product quality, and reduces waste.

• Automation in logistics

Automation, particularly robotics is changing the operations in the logistics sector. Drones are coming in as more effective replacements for delivery services. These are also used to keep track of the stocks. Other important functions are quick and accurate picking and packing operations by robots.

• Automation shifting skill requirements

With the introduction of AI, the need for physical and manual skills is increasingly dropping. The need for higher cognitive and technological skills is gaining more traction. In India with 11.4% of people^[1] working in manufacturing units, this shift depicts more job loss. However, there are strategies to adapt to such changes as we have shared in this blog.

2. Artificial Intelligence (AI)

Generative AI threatens many job roles today. Jobs like legal research, analytics, and supply chain optimisations are easily replaceable by AI. AI helps in predictive maintenance, reducing downtime and operational costs. Business experts will unanimously agree that AI improves functionality but cannot deny that it is leading to job cuts.

• AI in Data Analysis

Introducing AI for managing data in various industries is pushing data analysts to do more high-priority tasks. Routine tasks like data cleaning, creating visualisations, and charting patterns are being done by AI. Therefore, employees who are ready to upskill within short notice do not have a threat from AI.

• AI in customer-facing roles

AI chatbots manage customer inquiries, reducing the need for large customer service teams. These AI-based chatbots can handle many queries at once, speeding up response times and improving customer satisfaction.

• AI changing skill requirements

Unlike automation, AI is most likely to shift employee roles instead of layoffs. AI is prepared to do low-cognitive-level and repetitive tasks, saving people time to focus on high-cognitive roles.

3. Other Emerging Technologies

New technologies create new jobs but replace old ones. Cloud computing shifts jobs from traditional IT to cloud support. This needs new skills in cloud architecture and security.

• Cloud Computing

Cloud platforms change IT jobs. IT professionals now need skills in cloud architecture, security, and management, which are crucial as companies move their data to the cloud.

• Edge Computing

With more IoT devices, edge computing is vital. It processes data near the source, reducing delays. This needs experts who can manage and secure edge devices.

• Blockchain Technology

Blockchain is important in finance and supply chains. It creates jobs in developing and managing blockchain systems. Professionals need skills in cryptography, smart contracts, and decentralised systems.

• Quantum Computing

Quantum computing is new and can solve complex problems faster than regular computers. It needs experts in quantum algorithms, quantum mechanics, and advanced math. These are the technologies that will frame the future of business. New roles will be created with more companies adopting these technologies.

Strategies to Beat the Layoffs

As technology evolves, workers must adapt to stay relevant. Here are some practical strategies for professionals to be ready for the market shifts.

1. Upskilling and Reskilling

The tech landscape is changing fast, and workers must gain new skills to stay relevant. Online courses and certifications in AI and cloud computing can help. Workers should use online platforms offering courses in AI, machine learning, and blockchain. They include video tutorials, interactive modules, and forums.

• Certification Programs

Certification programs validate new skills, and employers recognize them. AWS, Google Cloud, and CompTIA are some of the popular learning platforms. Certification courses can be online or in person, including exams to test knowledge. They often lead to better job opportunities and higher salaries.

• On-the-Job Training

Companies provide training on new technologies specific to company needs. This helps employees adapt to new tools and systems. On job training includes regular workshops and seminars. They focus on trends and new tech. It helps in smooth transitions during tech updates and layoffs in the IT sector.

2. Networking and Professional Growth

Networking helps employees get insights into recent industry developments. They also gain more visibility into the resources that could help them upskill.

• Professional Associations

Joining groups like ACM or IEEE provide access to the latest research and trends. Members can attend webinars and read journals related to their niche. Discussions or debates on ideas can lead to new learnings or job opportunities.

• Conferences and Seminars

Conferences feature new technologies and offer workshops to improve skills. Networking sessions help professionals meet industry leaders and peers. These gatherings are a chance to discuss new ideas and industry challenges.

• Online Networking Platforms

Platforms like LinkedIn are key for networking. They help professionals connect and share knowledge. Regular updates and engaging in discussions boost visibility and connections.

• Volunteering and Collaboration

Volunteering at events or collaborating on projects helps build a network. It offers practical experience and connects you with key industry figures. This can strengthen your professional network.

Future Outlook

The future of tech will continue to develop and demand employee expertise. Let’s understand how this will shape the job requirements and applications in the IT sector.

1. Specialisation in Tech

The future of tech jobs will focus more on specialised areas such as AI ethics, quantum computing, and cybersecurity. Professionals might want to train in these fields to stay relevant. Specialising can open new job opportunities and increase job security.

2. Remote Work Trends

Remote work is becoming more common. Professionals should be comfortable with digital collaboration tools and remote working practices. Understanding remote work dynamics can make job candidates more attractive to employers.

Wrapping Up

The IT sector is changing rapidly due to technological advancements. Professionals must focus on continuous learning and upskilling to stay relevant. A proactive approach to talent management will help navigate the challenges and opportunities of this evolving industry. Changing business requirements due to automation can be challenging, but GrowthJockey is here to help.

We help you track your performance and growth from our performance management dashboards. You can use them to analyse and launch job training to upskill.

Connect with GrowthJockey today and take the next step in creating the most actionable workforce.

FAQs

1. How does AI improve company decisions?

AI helps companies make better decisions by quickly analysing large amounts of data. It finds patterns and trends that humans might miss. This helps businesses plan better and stay ahead of market changes. AI tools also help optimise operations and reduce costs. Despite the benefits, AI's role in the workforce has led to tech layoffs in various sectors.

2. What new jobs are emerging in blockchain technology?

Blockchain technology is creating new jobs in finance and supply chains. Key roles include blockchain developers and cryptography experts. These professionals build and secure blockchain systems, ensuring safe and efficient operations.

Skills in smart contracts and decentralized apps are also in demand. These new roles are emerging even as the IT industry layoff trends continue.

3. Why is continuous learning important for IT professionals?

Continuous learning is crucial because technology changes rapidly. IT professionals need to update their skills regularly to stay competitive. Lifelong learning helps them adapt to new technologies and find new career opportunities.

It also ensures they remain valuable to their employers. Staying updated can help professionals navigate layoffs in the IT sector and avoid being affected by tech layoffs in 2024.

1. 11.4% of people - Link ↑