According to TrueUp’s tech layoff tracker, In 2022, there were 1,525 layoffs at tech companies, with more than two hundred thousand people impacted, and this data is not including small companies with a small staff. Behind the unpersonalized and cold numbers, thousands of families face a difficult challenge: paying bills and finding a job ASAP.
2023 layoffs
Unfortunately, 2023 keeps layoffs in pace with the last year, and to my deep sadness, my lovely Lightspeed was also affected by this trend. Thursday, 17th of Jan 2023, Lightspeed company laid off 300 people. The same day, Unity conducts the second layoff round in 6 months and sends home 284 employees. The numbers look so tiny compared to 10 000 employees that Microsoft or 12 000 that Google is laying off. But again, behind each of them is a series of difficult decisions that were made, sad words that were said and huge uncertainty created.
At the same time, people that were lucky enough to keep their positions faced a different kind of challenge. Inflation and hikes in interest rates do not leave the same bucks in the pocket as they used to. Promotions and salary adjustments are not up to date with spending. Changing the company is the only way to bring home a better paycheck for some workers.
Despite all the sad news, so many companies are hiring and trying to find good employees. Some companies have changed their hiring targets and focused on senior employees after a previous layoff; like Shopify, some companies keep doing business as usual. Linkedin is full of open positions, and recruiters are still sending invitations for a quick chat about “a great opportunity because they love my profile.”
I can’t and honestly don’t want to make a hypothesis about why this is happening and what we can expect from the job market. From the big picture, I want to zoom in on the level of all of us: employees and employers. And here, we are reaching the main point of the article:
- How ethical is it to apply to an open position you probably just like while so many people really need it?
- How moral is it to ask for a raise while the company is sinking or find it hard to make ends meet?
I’ve asked different people this question: employees who lost jobs, recruiters and managers. It goes without saying that their answers are just their point of view and can not be applied to all managers or employees and definitely can’t be seen as the official position of their companies.
Anonymous N1
I believe it is perfectly fine to apply for a position that you feel may suit you better than your current role despite the lay offs across the industries. There are tons of reasons - professional, personal and financial - that may be behind your reasoning. For instance, you may feel that the new role you’re applying for presents better growth opportunities or features a tech stack that may be of more interest to you. On a more personal note, if you are not being appreciated at your current job or the environment is just plain toxic, I don’t see any ethical issues with trying to find a new job. The financial component is also very important as a big leap in compensation may be what attracts you in the context of recession and financial security. These are all valid reasons to consider a move.
To answer your other question about the raise in the times of uncertainty and financial hardships in a company, it may be wise to consider a more conservative increase in terms of compensation and negotiate something else, like vacation days, for example. After all, having let go of 10-20% of the workforce during the lay-offs, the company did implicitly free up budget money for potential raises for other employees who remained.
Anonymous N2
I don’t see a problem with this; you’ll be leaving your job so it’s not like you’re taking a job off the market unless you know for sure your company isn’t hiring replacements at the moment; even then, I think it’s your imperative to look out for yourself, no one else will.
Regarding asking for raise, I don’t think this question has anything to do with morals. Asking for what you need is the only way you will get it. If the company is sinking, they can say no.
Anonymous N3
I see these as two separate questions that have similarities in how I would provide answers.
First, when it comes to working in general, let’s not kid ourselves, we work in great part because we have responsibilities, need to put food on our tables (possibly for our children and/or other dependents) and ensure that we have a roof over our heads. We work to fulfill some of the most basic needs of life!
In that context, it is natural to act with thoughtfulness and care for others, as we should in society, but with a “pinch” of selfishness, understandably. After all, how can you care for others if you cannot meet your basic needs?
With that being said, I believe that my answer to some of these questions is unfortunately: it depends.
Are you asking from a place of need? Or a place of satisfied needs? Are you currently employed and happy? Or jobless and worried about your financial health (which we know will have an impact on the rest, eventually)? Are you currently underpaid? Or seeking a raise to buy the newest iPhone?
We could also go a little deeper and perhaps a little more philosophical. Is money a priority for you? Do you always need more? Or are you satisfied passed a certain threshold of comfort? Are you happy in your current role and company? Or are you unhappy and hungry for something different?
Not everyone will have the same answers to these questions. Not everyone eats the same thing for breakfast!
I believe it is fine to apply for any role you like. Ultimately, the hiring team must make the best decision for itself and for the candidates. They will select the most qualified value-add candidate regardless of context.
I also believe it is fine to ask for a raise. The company should be equipped to understand if they can afford it and should be able to recognize if you earned it. Hopefully. If giving you a deserved raise would put the larger team in jeopardy, then the company has larger problems…a perhaps so do you. Also, the industry context will challenge and evolve, as it always does. But your compensation, all other things being equal, increases incrementally over time from its current state. Large salary catch-ups are usually a hard sell to executives. Don’t get me started about inflation…you probably get the point. So don’t miss the opportunity.
Without giving definitive answers, I hope this will provide food for thought.
Anonymous N4
Personally, I think all the layoffs have nothing to do with ethics, and if one has an opportunity/invitation for a job opening, one should go for it:
- You are not keeping two full-time jobs simultaneously.
- The job market is so crazy right now there is demand for even more specialists than ones who were laid off (I saw an article the other day)
- It’s not guaranteed that you will land the job either - maybe it’s even more competitive now… i.e. I don’t see why applying for an open position can be un-ethical
Anonymous N5
This is not something I really think about. If there is an open position, it means there is a need to fulfill. If I want this position as much as the person next to me, why would I give it away to him? When I grab the last pint of milk at the grocery store, I don’t really think about the next person. If I were to leave it there for the next person, I would need to go to another grocery…
Regarding asking for raise, that’s a tricky question. A company needs to stay competitive to keep its people within the company. However, if the company is sinking… I guess it depends on what your priority is and your relationship with the company. I will accept not having any raise if it means saving jobs. If it also means that we make informed spending decisions and have a plan.
ChatGPT
It is generally considered ethical to apply for an open position if you are qualified and interested in the role, regardless of whether other people “really need it.” However, it is important to consider the potential impact on others, and if the position is essential for someone’s survival, it might be more ethical to prioritize candidates who are in more dire need of employment.
As for asking for a raise while the company is struggling, it depends on the specific circumstances. If the company is in dire financial straits and layoffs or other cutbacks are likely, it may be more ethical to postpone asking for a raise until the company’s financial situation improves. However, if the company is doing well and you believe you have earned a raise through your performance, it may be ethical to ask for one. Ultimately, the morality of asking for a raise depends on the specific context and your own personal values.
Do you want to share your story or answer the questions? Ping me on Twitter or Linkedin.
What would I do if laid off?
I have no special skills or education to advise people affected by staff cuts. But I can share what I would do in a situation like this:
- First of all, I’ll take a break for a day or two. It sounds so irrational and counterintuitive, and it probably is. But think about emotional aspects. We make big mistakes while affected by anger, self-blaming, panic or others emotions that could be flourishing based on that sad news. I would go for a ski or biking or something that would move my brain out of this situation and the four walls where I work.
- I will try to understand what should be my next challenge and what kind of job I would like to do. Maybe ML/AI is something on my wishlist of knowledge, perhaps web3, maybe VR/AR? What is missing in my skills to apply? Do I want to stay IC (individual contributor) or better understand people’s needs and solve problems?
- Based on the previous step, I would tune my CV and take a class or watch videos to close the gap in my knowledge. I would start applying, asking friends and the LinkedIn community for help, and I’m sure, after that dark period, I would land at a better place with amazing people.
In conclusion, I would like to wish not to return to this topic anymore. Even though people look to the future with optimism and believe that layoffs are temporary and the job market is huge. I still believe this is not a great experience that you can recommend to your friends:) Leaving the company and colleagues should be for a good reason, like new perspectives or exciting challenges, but not because of stagnation and layoffs.