Job market trends after tech layoffs: What’s next for professionals?

The wave of tech layoffs in recent years has reshaped career paths and the job market itself. While headlines can be discouraging, they don't tell the whole story. Many companies—especially outside traditional tech giants—are still hiring, and new opportunities are emerging in unexpected places.

Developer at work, coding with a breathtaking cityscape as her backdrop.

Whether you're a laid-off tech professional or observing the shift, here's what you need to know about post-layoff job market trends:

Game-changing or job market trends after tech layoffs: Tech Talent Is Spreading Across Industries

The demand for technology professionals is no longer confined to the tech sector. Industries such as finance, healthcare, logistics, and manufacturing are actively seeking tech talent to drive their digital transformation initiatives.

According to a report by CBRE, for the first time, non-tech industries hired more tech workers than the tech sector itself. Professional and business services companies added 49,760 tech jobs, while the transportation, warehousing, and wholesale sector added 45,390 tech positions in the past year. 

This shift is fueled by the increasing integration of technologies like artificial intelligence, data analytics, and cybersecurity into various business operations. As a result, tech professionals are finding new and diverse opportunities in sectors that were previously considered non-tech.

Startups and Scaleups Are Scooping Up Talent

The tech industry has seen significant layoffs, with over 95,000 U.S.-based tech workers affected in 2024 alone. This has created a talent pool that startups and scaleups are eager to tap into. These smaller, agile companies are prioritizing experienced, mid- to senior-level contributors who can deliver immediate results with minimal oversight. Source: Crunchbase

In London, for instance, the "Fastest Growing Scale-ups 2024" collection highlights 50 companies that have increased their headcount by 20% to 218% over the past year, actively hiring engineers to support their expansion. Source: LinkedIn

This trend reflects a broader shift in hiring practices, where startups and scaleups are seizing the opportunity to bring in top-tier talent from larger tech firms, fostering innovation and driving growth in a competitive market.

Contract and Fractional Work Are on the Rise

Contract work involves individuals being hired for a specific period or project, typically without the long-term commitment associated with full-time employment. Fractional work, on the other hand, refers to professionals taking on part-time executive roles, such as fractional CFOs or CMOs, allowing companies to access high-level expertise without the cost of a full-time hire. Source: Sconstaffing

AI and Automation Are Reshaping Skill Demands

With the rise of AI tools and automation platforms, employers are prioritizing hybrid skill sets: technical knowledge combined with strategic thinking, data fluency, and creativity. Upskilling is key.

Remote and Hybrid Roles Are Still Thriving

Despite some companies pushing return-to-office policies, remote roles—especially in development, design, marketing, and customer success—remain strong. International hiring is also expanding, creating opportunities beyond local markets.

Soft Skills Are Gaining Importance

Beyond technical abilities, companies are placing more value on communication, adaptability, and collaboration, especially for remote and cross-functional teams. Candidates who can lead, influence, or innovate in uncertainty are highly valued.

Job Seekers Are Prioritizing Meaning and Balance

Layoffs have made professionals more intentional. Many are choosing companies that offer stability, purpose, flexibility, or alignment with personal values over just high salaries.

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To navigate these changes effectively, staying informed is crucial.

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