'Even If the Sky Falls, There Is a Way Out'... US Big Tech Employees Find a 'New Nest' at JP Morgan and Walmart After Layoffs

"Startups Also Get Opportunities to Hire Skilled Technicians"

[Asia Economy Reporter Jeong Hyunjin] This year, as a wave of mass layoffs swept through the major IT industry in the United States, engineers have been rapidly re-employed in the finance and retail sectors, leading to a large-scale job transition. Amid inflation surges, interest rate hikes, and recession concerns, IT companies aiming to maximize profitability and efficiency have implemented layoffs and hiring freezes, which is expected to further accelerate the movement of engineers. In particular, large corporations and startups in other sectors, such as JP Morgan and Walmart, which had previously been distant from the IT industry, are actively recruiting, and significant changes in organizational culture are anticipated.

On the 29th (local time), The New York Times (NYT) reported, "As Silicon Valley carries out layoffs, the shift of tech talent is accelerating," adding, "Most tech jobs are in mainstream industries such as healthcare, finance, and retail that require digital skills." On the same day, CNBC reported, "With major tech companies implementing layoffs and hiring freezes, startups have easier access to talent."

◆ JP Morgan and Walmart Welcome Engineers with Open Arms

According to NYT, JP Morgan, Walmart, and UnitedHealth are representative companies that have recently been aggressively hiring tech talent. As finance, retail, and healthcare industries gradually digitalize, the demand for tech personnel has significantly increased. Unlike Silicon Valley, these companies did not substantially increase hiring during the pandemic but have continued investing in technology.

JP Morgan had about 50,000 tech employees before the pandemic but has increased that number to 55,000. Lori Beer, JP Morgan’s Global Chief Information Officer (CIO), said, "Almost every company is experiencing this situation. Companies need tech talent," adding that it has become easier to hire due to Silicon Valley layoffs. She also mentioned that competition with other companies for candidates is relatively less, reducing associated costs.

[Image source=Reuters Yonhap News]

Walmart is also seeking tech talent. Over recent years, Walmart has hired more than 20,000 tech engineers, data scientists, and technical product managers. In March, it announced plans to hire an additional 5,000 tech employees worldwide. Randy King, Walmart’s hiring manager, explained to NYT that they were able to fill these positions by persuading engineers from Silicon Valley and startups that the services they create could reach millions of consumers.

UnitedHealth has hired more than 10,000 tech employees in the past three years, currently employing a total of 36,000 tech personnel.

Tim Herbert, Chief Research Officer (CRO) at CompTIA, a technology research and development company, evaluated, "If this transition reallocates skilled tech workers to other industry sectors, it will lead to healthy growth."

◆ "Also Considering Startups with Greater Flexibility and Impact"

Startups have also seized the opportunity to secure tech talent. Skilled tech workers who previously headed straight to big tech companies can now be retained. CNBC reported, "With the stability once offered by big tech companies disappearing, engineers are seeking startups or mid-sized companies that offer greater work flexibility and more influence within the company."

Following announcements of layoffs such as at Twitter, startup CEOs have repeatedly posted messages on social media welcoming departing employees. Amanda Richardson, CEO of recruiting software startup CoderPad, referred last month to Elon Musk’s sudden ban on remote work at Twitter, stating, "At CoderPad, we believe your skills speak for everything. It’s not about where you sit, whether you sleep at work, or working 18 hours a day, seven days a week," appealing to potential recruits.

With this situation, startup HR teams are busy. Dave Merkel, CEO of cybersecurity company Expel, told CNBC in an interview that they plan to increase their current staff of about 470 to 520 within a few months. He described the atmosphere, saying, "Usually, hiring managers are not busy around this time of year, but now they are very busy."

◆ 150,000 Laid Off This Year Alone... Re-employed Within 3 Months?

The fact that tech workers are quickly finding new jobs can also be confirmed by statistics.

[Image source=AP Yonhap News]

According to Layoff, a U.S. layoff-related research firm, more than 150,000 tech workers have been laid off this year, with over 50,000 laid off in November alone. However, The New York Times, citing government statistics, reported that total employment in tech occupations in the U.S. reached a record high of 6.39 million in November this year. This figure increased from the previous month and represents a 12% increase compared to a year ago. This suggests that new jobs are as plentiful as layoffs.

The Wall Street Journal (WSJ) recently cited a survey by job site ZipRecruiter, reporting that 79% of workers laid off or whose contracts ended at tech companies found new jobs within three months of starting their job search. Thirty-seven percent found new jobs within less than a month of beginning their search, and nine out of ten respondents said they were contacted by recruiters or company hiring managers within a week of submitting job applications.

This content was produced with the assistance of AI translation services.