Thriving After Tech Layoffs. How Software Developers Can Rebound
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The tech industry’s hiring frenzy during the COVID-19 pandemic felt like it was on steroids. Companies were offering significant signing bonuses to attract talent, while tech professionals were switching jobs or taking extended breaks, confident they could return to even better opportunities. But the hangover came fast and hard.
By late 2022 and early 2023, companies realized they overinvested and overhired, leading to mass layoffs. According to Layoffs.fyi, over 260,000 tech professionals lost their jobs in 2023, with an additional 150,000 layoffs in 2024 across large corporations, startups, agencies, and consulting firms. Even as layoffs slowed, 2025 started grimly, with META, Microsoft, and Wayfair announcing fresh cuts in January.
The oversaturated job market has left many unemployed engineers, developers, and designers struggling to find work. LinkedIn and Indeed job postings often receive hundreds of applications within hours, leading to fierce competition. For many, this prolonged job hunt erodes self worth and drains unemployment benefits, which in the U.S. last six months. Despite these challenges, there are still many strategies to navigate this uncertain period and emerge even stronger.
Stay in the Game, Even If It Means Taking a Step Back
Keep applying for jobs, even if it means accepting a lower salary, a smaller title, or a volunteer role at a nonprofit. Being employed, even in a temporary or lower-capacity role, can make the job search easier and helps cover resume gaps. It’s also an opportunity to continue building skills while keeping yourself in the workforce.
Invest in New Skills or Further Education
Consider taking online courses or pursuing an advanced degree. While this requires an investment of time and money, it can fill resume gaps, strengthen your skill set, and potentially open doors to new opportunities in a recovering job market. Some may even use this as a chance to change careers entirely.
Explore Freelancing or Consulting
Freelancing offers flexibility and allows you to take control of your work environment. One example is a web designer who struggled to find full-time work for eight months but began taking freelance projects. He decided to move to lower-cost locations like Lithuania first and then to Bulgaria, where a comfortable lifestyle was more affordable, enabling him to continue applying for jobs and attending interviews online.
Collaborate to Build New Opportunities
Some professionals who lose their jobs band together to form small agencies or startups. This approach not only generates income but also maintains an appearance of employment on resumes. For example, a group of laid-off marketers formed RetainTrust, an advertising and reputation management agency. Their collaboration allowed them to network, stay relevant in the industry, and develop a portfolio of clients under their newly created brand. All it took was a website and LinkedIn presence to get started.
Be Persistent and Patient
The tech job market’s current challenges are undeniable, but they are also cyclical. Patience and persistence are key. Keep refining your resume, expanding your network, and staying informed about emerging trends in the industry. Demonstrating resilience and adaptability will set you apart from other candidates.
Final Thoughts
The tech layoffs of recent years have undoubtedly created a challenging environment for software developers and other tech professionals. However, by staying proactive and exploring diverse opportunities, it’s possible to turn adversity into an opportunity for growth and reinvention. Whether it’s upskilling, freelancing, collaborating, or taking a step back to move forward, these strategies can help you navigate the current job market and position yourself for success in the future.
