“We all came back from our new year leave full of motivation and aspiration for 2024. However, by the end of the day, some people got invitations for a one-on-one with human resources personnel.
“The next day, we found out that whoever got an invite was getting retrenched,” says a former user growth analyst with a local ecommerce platform who wanted to be known as just Bailey.
Waves of layoffs have rocked the tech industry in recent years, with major players like Amazon, Apple, Dell, Google, Meta, and Microsoft making headlines for significant workforce cuts.
Layoffs.fyi, a tracking project, reported that 1,191 tech companies laid off a staggering 263,180 employees in 2023 alone. As of April 2024, the trend shows no signs of slowing, with 57,505 cuts across 229 companies.
In the midst of a global surge in job cuts, Malaysians working in the tech sector are also feeling the impact firsthand, as they are not immune to this unfortunate reality.
And when employees are taken by surprise by job cuts, the effects go far beyond just losing their income. This was true for Bailey, who was affected by layoffs in a subsequent round.
“Honestly, it impacted my confidence the most because, after getting laid off, I faced several rejections as well as no offers from all my job applications.
“I almost gave up, but thankfully I was approached with an offer, which helped me get back on track,” says Bailey.
At her former company, Bailey says staff learned about the layoffs through rumours and external reports rather than through internal communications.
Laid off suddenly? Don’t let this be your fate – keeping your resume up-to-date and touching base often with your contacts could help you land a new job or career faster than others in the same predicament. — Image by freepik
Another tech worker, Lee, who also experienced layoffs earlier this year, described a “silent” company restructuring effort that was taking place behind the scenes.
Eventually, his former colleagues faced widespread layoffs across various departments, resulting in a final working day that was significantly shorter than the customary two-month notice period outlined in their contracts.
However, they received appropriate compensation for their abrupt termination.
Lee, who has since secured a new role as a product analyst and prefers, like others in this story, to remain anonymous, says the experience has increased his awareness of job security when looking for employment.
Augustin, a quality assurance (QA) tester at a company that has since shut down, says he had concerns after overhearing discussions about the company’s financial instability and the lack of a salary raise in 2023, but he didn’t foresee the severity of the situation.
“I was surprised, but it didn’t have such a big impact on me personally since I wasn’t that high up the totem pole. It was definitely harder for seniors who have been with the company for over a decade with kids and a family to feed.
“It was sudden, but since I hadn’t settled down or had major commitments, I still had room to breathe,” he says.
Augustin adds that his colleagues, who paid closer attention to the warning signs, left the company before the announcement of its closure, managing to escape relatively unscathed.
He advises workers, especially in the tech industry, to stay informed and be prepared to act to avoid being caught off guard, as he was.
Experts advise workers to keep their resumes updated so that it’s ready to go immediately. — Image by rawpixel.com on Freepik
Tham Ming Keat, another employee of the company, shares that while the incident didn’t leave a lasting impact, he was disappointed that the issue wasn’t handled more professionally.
“Being retrenched did not change my perspective on my career and the tech industry as a whole, since I have always been aware of its ups and downs because of all the news about companies downsizing and doing layoffs.
“It was just disappointing that it came as a surprise, without any warning or communication,” he says.
Helping hands
Many of those affected found solace and support from the tech community, which played a crucial role for some in finding new employment.
Being retrenched did not change my perspective on my career and the tech industry as a whole, since I have always been aware of its ups and downs because of all the news about companies downsizing and doing layoffs. — THAM MING KEAT
For instance, Lee found a new position after a month and a half of searching, attributing his success to LinkedIn and WhatsApp groups created by senior staff members who helped connect them with talent scouts.
LinkedIn helped amplify news about the layoffs at his previous company, attracting headhunters eager to absorb the newly available pool of talent into other organisations.
On the other hand, the first resource that Tham tapped into was his network of peers, friends, and ex-colleagues who were in the same industry to explore job openings at their companies.
During his search, he also relied on LinkedIn and joined social media groups focused on the tech sector, such as DeveloperKaki.
This community maintains lists of laid-off tech workers from Malaysian companies, complete with details such as CVs, professional profile links, websites, and employee locations.
A more comprehensive catalogue hosting crowdsourced data on laid-off workers can be found at layoffs.fyi.
Following her layoff, Bailey secured a new position after recruiters reached out to her.
Meanwhile, Augustin secured a new job in the same field after three months of job hunting.
The need to network
KK Ng, chief technology officer with DoctorOnCall and a senior member of the DevelopKaki group, describes the past year as challenging for those in the tech sector.
Making themselves more marketable is going to be a very important skill that was not really important when the good times were here, but now that the bad times are here, they should really polish themselves. — K.K. NG
“You see big names like Google and Meta Platforms laying people off. These are big companies, so they can afford to compensate people very well, with good severance pay, but the smaller companies might not be able to afford that. A lot of people are getting left in the lurch, and some people might not be prepared for that,” he says.
Ng assists job seekers by connecting them with recruiters, sharing their profiles within hiring circles, offering suggestions on how to improve their CVs, and providing advice on how to enhance their job market presence.
He says that those who grew too comfortable in a role may have neglected updating their online professional profiles and developing more up-to-date skillsets, which may leave them redundant in a rapidly changing industry.
Ng also highlighted another aspect often overlooked in the industry: the tendency for some individuals to be more introverted.
This can inadvertently lead them to undervalue the importance of cultivating a professional network.
“Making themselves more marketable is going to be a very important skill that was not really important when the good times were here, but now that the bad times are here, they should really polish themselves.
“Tech people have traditionally been very introverted, and they don’t really like to network and go to events, but in this day and age, knowing the people around, who’s hiring, which companies are expanding, and getting to know different circles is going to open doors,” says Ng.
He highlights that failing to build and maintain these networks puts someone at greater risk compared to those who do. He believes there needs to be a shift in mindset, especially among developers and tech professionals.
Updating one’s skill sets, be it learning a more current programming language or mastering the use of artificial intelligence, will also be key to securing a job, experts say. — Photo by Christina @ wocintechchat.com on Unsplash
Updating one’s skill sets, be it learning a more current programming language or mastering the use of artificial intelligence, will also be key to securing a job, he says.
For Safinah Mohd Zin, a software test manager, a well-established network was instrumental in her bounce-back following a layoff wave in 2017, as it enabled her to secure freelance work through an industry contact.
Having spent four months working as a freelancer before moving to a new permanent position, she advises others to do the same, adding that these opportunities turn up on various job platforms.
Tham similarly took on freelance gigs while he was waiting for interview callbacks and preparing for a new role.
Improving the industry
Many of those retrenched out of the blue feel that companies have to better communicate with staff – and have a greater degree of transparency about decisions and developments – especially when it involves the livelihood of employees.
Lee believes employees have the right to know the company’s actual performance, rather than being shown a rosy picture only to face sudden layoffs.
Don’t be shy to ask for a resume review – both paid and free options are available on the market. — SAFINAH MOHD ZIN
“Employees are there during the bad times, working overtime and sacrificing their personal lives and family time, so the company should have their backs too,” he adds.
Lee says providing assistance in finding a new placement via the company’s partner networks, for instance, would prove invaluable in shortening the time someone is without an income.
Both Lee and Bailey share that the HR department of their previous employers introduced them to the Employment Insurance System (EIS) provided by the Social Security Organisation (Socso).
The EIS, established in 2018, provides income replacement for eligible employees who have contributed to the scheme and lost their jobs through retrenchment, VSS/MSS (voluntary/mutual separation schemes), bankruptcy or closure of the business, among others.
However, they will be required to enrol with MyFutureJobs, where they will be matched to suitable vacancies.
Successful applicants will be able to claim up to 80% of their income – subject to a maximum wage of RM4,950 – in the first month, with the rate decreasing thereafter. Socso provides a handy EIS calculator.
Ng is of the opinion that the wage cap is too low, which reduces the replacement salary a person could qualify for.
“If you get retrenched from the age of 30 onwards and live in a place like Kuala Lumpur, that amount is not going to mean much. It’s really not a huge amount.
“I think it should take into account the value of the ringgit and the cost of living in the city,” he says.
Safinah suggests providing post-layoff assistance through a third-party service provider to manage and extend the required support, adding that her previous employer offered such services in the first month after layoffs.
“I took the chance to engage and speak with experienced recruitment personnel who helped me review my resume and provide constructive feedback on how to structure key achievements using the STAR (Situation, Task, Action, Response) method.
“The personnel also gave suggestions in case I wanted to join another multinational company in batches given the mass layoff.
“I learned that companies also prefer mass-hiring candidates who were laid off from the same firm, as it helps narrow down the training process and cultural gap.
“These candidates usually come with a set of ways of working following the previous company’s standard,” she says.
She recommends periodically updating resumes, especially after realising that this was one of the stumbling blocks for her when she was retrenched and needed it on short notice.
“Always update your resume at least once a year. This reduces the thinking process, and you can immediately apply for available openings.
“Also, don’t be shy to ask for a resume review – both paid and free options are available on the market,” she says.
Ng has a similar perspective on keeping resumes and professional profiles up-to-date, emphasising the need to highlight accomplishments and achievements.
“Don’t just leave it in the dust until the time comes. Make sure it’s ready and handy to go whenever you need it.
“Take updating your LinkedIn, for example – some people leave it like an empty house. The advice would be to keep your house clean, updated and fresh,” he concludes.