Resilience in the Tech Industry: Marketing Yourself for New Roles After Major Crashes
This past year has felt like a flashback to my early and mid-career days in the digital space. The tech industry has witnessed two significant downturns over the past few decades: the DotCom Bubble of 2000 and the Tech Crash of 2023. Both events are stark reminders of how fragile the tech sector can be and how finding new career opportunities takes careful dissection of your skillset.
The DotCom Bubble of 2000
Timeline
The commercialization of the Internet in 1995, coupled with the introduction of web browsers, made the Internet more accessible. By 1997, the Taxpayer Relief Act lowered capital gains tax rates, encouraging speculative investments. This, along with low interest rates and easy access to capital, led to a speculative bubble from 1997 to 2000, with the Nasdaq soaring from 1,000 to over 5,000.
Causes
The primary causes included a lack of profitability among dot-com companies, rampant overvaluation due to investor speculation, and a subsequent capital drought as investors became more cautious. Many companies lacked viable business plans and relied heavily on venture capital funding, leading to unsustainable growth.
Aftermath
The bubble burst in March 2000 when the Nasdaq peaked at 5,048. Over the next two years, many dot-com companies went bankrupt, leading to massive layoffs and a bear market. Surviving companies like Amazon, eBay, and Google consolidated and emerged stronger. My employer ceased operations in March 2000, leaving welcome gifts at desks in a network of new national offices for ghost employees who never materialized. The delivery of KFC by the CEO to the Christmas party the year before should have told us something.
The Tech Crash of 2023
Timeline
During the COVID-19 pandemic in 2020–2021, tech companies experienced a hiring spree, and startups raised record amounts of venture capital funding. As the economy reopened in 2022 and interest rates began to rise, tech companies faced slowing growth and higher costs, leading to the first wave of layoffs. The collapse of Silicon Valley Bank (SVB) in late 2022 exposed vulnerabilities in the tech industry, and by early 2023, fears of a recession and the SVB fallout led to a sharp decline in venture capital funding.
Causes
The crash was fueled by overvaluation and excessive funding during the pandemic years, rising interest rates making borrowing more expensive, an economic slowdown reducing demand for tech products, and a banking crisis disrupting startup access to capital.
Aftermath
In 2023, major tech companies like Amazon, Meta, Microsoft, and Google announced significant layoffs, totaling over 200,000 job cuts. Numerous startups, including high-profile companies like WeWork and Convoy, filed for bankruptcy due to funding issues and unsustainable business models. Venture capital funding plummeted, and surviving companies focused on profitability over growth. Investor sentiment shifted to favor established companies with strong fundamentals.
Comparing the Two Crashes
The DotCom Bubble of 2000 and the Tech Crash of 2023 were preceded by periods of excessive speculation and investment in tech companies, leading to inflated valuations and unsustainable business models. Both resulted in significant job losses and consolidation among surviving companies. However, the economic context, the role of a banking crisis, and the impact of the COVID-19 pandemic distinguished the Tech Crash of 2023 from the DotCom Bubble.
Lessons Learned
The DotCom crash taught me the value of understanding my full skillset and capabilities as individual components of what I bring to my job. Trying to find work in UX after the multiple layoffs taught me to dissect my skills into marketable traits I could bring to roles outside of UX and technology. I closely examined the various things I did as a UX professional: public speaking, client management, project management, user research interviewing, moderation skills for research, visual design, etc. Creating this list allowed me to explore jobs outside of UX and increase my chances of finding work after the crash.
It’s essential to view all individual skillsets one has when looking for new work after an industry crash. Dissecting a skillset into individual components you can capitalize on for finding work in new markets and industries is crucial. For instance, breaking down skills in public speaking, project management, user research, and design can open opportunities in various fields, not just UX. This approach increases the chances of finding work and demonstrates the versatility and adaptability of your expertise.
Conclusion
The DotCom Bubble of 2000 and the Tech Crash of 2023 were significant events that reshaped the tech industry. The DotCom crash taught me the impermanence of my identity as a singular career path and made me more critical in defining my offerings for a new employer. The end result was that I became a solo professional, finding projects that capitalized on my different strengths and skills, which took me through the next 10 years of my career. The lesson I learned then applies to the Tech Crash of 2023. The crash hit the UX community hard, but the amazing complexities of a UX role mean you have more marketable skills than you think.
