Layoffs disproportionately impact Black workers and will only exacerbate the racial disparities that ... [+]
More than 100,000 employees have been laid off from tech companies since 2023 stated, according to a running list from layoffs.fyi. Tech giants including Zoom, Pinterest, Paypal, Spotify and Google’s parent company Alphabet have collectively laid off thousands of workers. Many tech companies went full force on hiring at the start of the Covid-19 pandemic, based on a change in consumer needs, which required accommodating a remote workforce and increased e-commerce.
Now, during a period of slowing growth and economic uncertainty, racial minorities and women are the most vulnerable in the U.S. labor market. To make matters worse, during times of economic instability, DEI programs are the first to get defunded. In 2022, HR departments and DEI teams were seeing some of the highest job cuts, according to the Society of Human Resource Management . Halting DEI efforts may seem like a reasonable solution but leaders must recognize the long-term effects of this decision. Without the necessary push from HR departments and DEI teams, corporations don’t often put enough focus on hiring and retaining employees from underrepresented racial groups.
“What is the workplace culture going to be as people see a higher rate of Black and brown team members exit the workplace?” Workplace culture and leadership consultant Kim Crowder urges leaders to think about the implications of mass layoffs. “What are customers and audiences going to think?” With companies getting rid of their DEI budgets and DEI teams, racial diversity in tech will continue to suffer.”
Even before the current round of mass layoffs in the tech sector, there were notable disparities. According to Zippia.com, in 2021 62% of U.S. tech jobs were held by white employees, while 20% were held by Asian Americans, 8% were held by Latine/Latinx American employees and only 7% were held by Black employees.
Failing to prioritize DEI could widen these racial gaps in tech. “Companies need to be proactive when it comes to their DEI efforts,” shared senior talent acquisition professional, Jessica Pharm. “Don’t let fears of a recession be an excuse for not moving forward on critical DEI initiatives. If anything, it’s more important to double down and make clear DEI is still very important...considering how many Black/POC employees have been impacted.” A 2020 Washington Post-Ipsos poll found that Black and Hispanic employees were more likely to be laid off compared to their white counterparts. Layoffs disproportionately impact Black workers and will only exacerbate the racial disparities that already exist within tech. A 2023 McKinsey report indicates that the Black tech talent gap is expected to widen in the next decade.
Black employees face considerable challenges in the labor market.
Black employees face considerable challenges in the labor market. Structural barriers have created more hurdles for Black job seekers, who face higher unemployment rates and fewer job opportunities among other systemic issues. For Black talent, the popular career advice of “fake it ‘til you make it” doesn’t work. Research indicates that Black employees that engage in self-promotion in the workplace are penalized for it. Black talent that wants to showcase their knowledge, skills, and abilities must develop more nuanced strategies to navigate these challenges. LinkedIn can be a useful tool for Black talent to find community and showcase their acquired knowledge and skills. In addition to tapping into different online jobseeker communities, honing and developing one’s skillset can be beneficial for tech talent.
Recruiter and career consultant Jermaine L. Murray works to help Black talent secure tech roles. For recently laid off tech talent, Murray emphasizes the importance of strengthening one’s skillset. “I’ve been telling Black people to find community in these circumstances while also investing in their personal brands by either repositioning their existing skillset into a new value proposition or learning new skills to become more competitive in niche industries.” The Plug suggests that Black tech workers navigating layoffs should remember their worth. Layoffs can be extremely taxing on a person’s wellbeing and confidence. It’s vital for Black talent to focus on what an asset they are and to not be deterred by mass layoffs. Black professionals can’t be afraid to showcase their talents online and be open to help from the community, while trying to remain optimistic. Although a minor or major setback, a layoff is not end of the journey and can provide individuals with the chance to open new doors and pursue different opportunities.
