To say we live in uncertain times is a gross understatement. Things are happening so fast that we don’t know what to expect in a week, let alone next quarter. At some point, we will drift back to a quasi-normal state. But our society and way of life will be permanently affected.
Despite the massive layoffs due to Coronavirus, many tech companies will need to hire more employees due to the surge of stay-at-home needs. This article is about looking into the crystal ball to see how things will be in six months to a year or longer.
After the catastrophe of 9/11, it took a while for consumer behavior to drift back to normal, but eventually, they did. Right now we are going through something similar but on a bigger scale. Coronavirus has killed or infected many more people and affects almost everyone on this planet.
The story of anyone who lived through the Great Depression is that it forever changed their lives. Some tended to hoard things because of a lasting philosophy to “hold on to what you have” for safety. This virus will affect how people live their lives going forward. While some will get back to the normal routine, others will be cautious. This is especially true if Coronavirus never completely goes away and springs back from time to time (albeit on a much smaller scale).
Tech Companies in COVID-19
Large tech companies such as Facebook, Apple, Netflix, etc. will be safe as they have the resources to outlast and even thrive during these times. But for startups with a low runway, this virus is a detrimental hit to their longevity. Startups born during the days where raising money was easy will find it extremely difficult to raise the next round. Some will die off quickly if they don’t know how to be fiscally conservative.
Company types that are not going to do well now and maybe permanently affected:
- Car ride-sharing apps (although some are turning to grocery/food delivery)
- Events, Hospitality: Cvent, Meetup, airBnB, Priceline, Kayak
- Traveling: TripActions, Turo
Some tech companies are doing very well. Specifically, ones connected with “staying at home.” These include:
- Streaming video, gaming, entertainment, and online education
- Work productivity
- Cloud infrastructure
These shifts will have a profound impact on the tech industry and tech recruiting, but automation will by far have the biggest impact on both. In our next article, we will cover what tech recruiters can do to prepare for the looming changes in the industry.