The years following 2020 saw unprecedented changes in how businesses operate, grow, and manage talent. As digital transformation accelerated during the pandemic, companies across industries, particularly tech, embarked on aggressive hiring sprees. However, by 2023, the narrative had shifted drastically. Waves of redundancies swept through organizations as they grappled with economic realities.
What caused this dramatic turn? The answer lies in a post-pandemic recalibration—a necessary correction for overexpansion, with companies shifting their focus from rapid scaling to sustainability and profitability.
The COVID-19 pandemic was a catalyst for innovation and transformation. The sudden need for remote work, online services, and digital tools created a surge in demand across tech sectors. Companies raced to meet these demands by scaling operations, often beyond sustainable levels. According to Orbis Group’s 2024 Product Salary Guide, this era saw a glut of new roles, especially in non-core areas like mid-level marketing and HR.
With capital pouring in from venture funds and revenues climbing during this golden era, businesses prioritized hiring as a growth strategy without clear foresight into long-term needs.
As global economies stabilized post-pandemic, businesses faced a sobering reality: the revenue surges of 2020-2021 were not permanent. Investor sentiment shifted sharply, with a renewed emphasis on profitability over unbridled growth. This led to the downsizing of overinflated workforces.
Key drivers for redundancies included:
One of the starkest patterns in recent layoffs has been the targeting of mid-level positions. While critical during expansion phases, these roles are often deprioritized when organizations tighten budgets. Businesses have opted to rely on junior talent, often augmented by Generative AI tools, to manage execution-level tasks.
In product management, for example, roles at the senior level have seen significant salary increases, reflecting their strategic importance. Conversely, mid-level positions face a dual challenge of redundancy risk and stagnant wages due to oversupply in the job market.
The adoption of Generative AI has further reshaped the workplace landscape. While AI tools have boosted productivity, they’ve also reduced the need for large, execution-heavy teams. Product managers, marketers, and operations professionals are integrating AI into daily workflows, enabling leaner teams to accomplish more. However, thought leaders emphasize that human skills—intuition, creativity, and strategic thinking—remain irreplaceable.
The wave of redundancies has created a competitive job market, especially for mid-level professionals. Yet, this isn’t a bleak story—it’s one of opportunity.
Despite initial disruptions, 2024 has shown signs of stabilization. Companies are now focusing on building resilient, high-performing teams rather than chasing aggressive growth. As businesses finalize their recalibration strategies, hiring patterns are expected to normalize, particularly for strategic and leadership roles.
For professionals navigating this landscape, the key lies in adaptability. Building expertise, embracing technology, and aligning career goals with market demands will be crucial to thriving in this new era.
Redundancies, while painful, reflect the broader transformation of industries recalibrating to post-pandemic realities. As businesses prioritize sustainability, professionals have a unique opportunity to reshape their careers by aligning with this new ethos of thoughtful growth.
We understand that redundancy can feel overwhelming and deeply personal—it’s a moment of uncertainty that no one wants to face. If you find yourself at an exit point in your career, know that it’s not a reflection of your worth or abilities. This is a period to pause, recalibrate, and explore new possibilities that align with your strengths and aspirations.
Remember, you’re not alone. Lean on your support network, seek guidance from trusted peers, and take advantage of resources available to help you through this transition. The product community is here to support you, offering encouragement, connections, and advice to help you navigate this challenging time with resilience and confidence.
💡 If you need resources or a listening ear, don’t hesitate to reach out. You’ve got this, and we’re here to help.