News & Analysis

Twitter, Meta Layoffs a Boon for US Companies

The recent spate of layoffs from Meta and Twitter could just be the opportunity that US IT firms have been waiting for to hire quality staff cheap

The spate of layoffs that left many employees of Twitter and Meta flummoxed, could actually be a blessing for several IT services companies and staffing companies in the United States. Why so? Because, they’ve suddenly found a robust reserve of potential employees who could be hired almost instantly and possibly at a lower cost. 

Given that many of those fired by Twitter, post the takeover by Elon Musk and Meta, owned by Mark Zuckerberg, have existing H1B work permits, they become the best fit for these IT companies, including those from India that are working on onshore projects for clients. It would be a great win-win for both parties, though the hirers may expect a discounted price. 

Since these employees who were fired would not be eligible to stay back and work in the United States 60 days after their contracts expire, getting offers from these IT companies and staffing organizations would work well for them. Yes, they may have to take a salary cut, given their inability to demand or command a price. 


A great opportunity to hire cheaper

Several staffing companies believe that this could be a great opportunity to hire good talent at a competitive price in the United States. One of the companies, which began operations in the US some months ago, feels that the layoffs provide the opportunity for better placed companies to acquire the very same teams that originally built those firms that laid them off. 

“In other words, you are getting qualified people who worked towards building a business, which has now turned back on them. The layoffs are across the board, both in startups as well as in the mature ecosystems. Now, given that the employee has a working visa is an advantage, which is why it’s a good time to hire,” says a senior executive at a staffing firm.


Demand for staff remains robust indeed

Readers would recall that most IT services companies have been hiring in the US as part of their efforts to move in closer to their customers. This has been part of their plans to get more out of their customers, especially since two years of remote operations necessitated by travel restrictions following the pandemic. 

Today, the fact remains that US companies require workers with H1B permits and there is no easy way to find them, since employers are loath to advertise for such jobs since they open them up to lawsuits in the country or even regulatory sanctions. So, the best way is to look at staffing firms to acquire this laid off talent with as little fuss as possible. 

And the easiest way to do so is to use their existing employee networks to tap into the pool of workers who lost their jobs and then go about quietly recruiting them. Such an effort benefits both the companies who are seeking trained employees as well as those who suddenly face unemployment and the prospect of returning to their native countries. 


Staffing companies vs. IT companies 

In fact, staffing companies could actually be competing with IT companies at this juncture as they too are scouting for potential employees to place with their IT customers for short-term projects. Many have already approached some of the staff laid off by Meta with offers. The quandary in this setup is for the employees – do they join the staffing companies or wait for possible offers directly from the IT giants? 

And this issue has everything to do with the salary packages offered by the IT companies, which is fairly premium compared to the staffing firms. However, given the recessionary pressures, even the IT companies are looking to reduce salaries and may want to go with sub-contractors in the near future, in which case the laid off staff doesn’t have much of a choice. 

In fact, the maximum job offers are happening on Twitter and Facebook itself with people posting prospective job offers for those who got laid off. Most of these are with startups who are also willing to sponsor the work permits, while a few are from larger companies who may have some trouble to shift the work permits over. 

One thing though is quite clear. The prevailing atmosphere is hardly in favor of the employees and does not seem likely to be so for the next couple of years at the very least. Big tech companies have reduced staff and stopped hiring, the same holds true for others, which means the supply far overshoots the demand. 

So, there is no surprise that the hiring climate would be far from welcoming for the employees, instead being skewed heavily towards employers who would first look to reduce the overall staff bill through pay cuts with no perks in the near future. As for the employees, it would amount to having something in hand rather than a few in the bush. 

Leave a Response