Diversity, Equity & Inclusion Impact

By Buffy Naylor

The boom-and-bust cycle is not unfamiliar to the tech industry. The “surge and purge” in the tech workforce, however, is a new phenomenon. Like many of the other wrinkles currently in the fabric of our lives, it is largely an aftermath of the pandemic — but one with complications.  

When reliance on technology boomed during the pandemic, tech companies and other players in the channel went on a hiring spree. At the same time, the deaths of Ahmaud Arbery, Breonna Taylor and George Floyd spurred a worldwide resolve to confront systemic racism. In the tech industry, more than 200 companies pledged to embrace DE&I in their organizations. But intentions aren’t actions, and two years later, while the U.S. Bureau of Labor Statistics showed the tech sector growing 10 times faster than the rest of the economy, the professional, managerial and executive population in tech was still predominantly white and male.

And it’s likely to stay that way as tech companies begin unprecedented job cuts as part of their strategies to become lean in the face of an impending recession.

Layoffs.fyi shows that nearly 160,000 employees were laid off from 1,040 tech companies in 2022. While women and Latino workers make up roughly 300% and 10%, respectively, of the tech industry workforce, they represent 46.6% and 11.5%, respectively, of those laid off between September and December 2022. In most tech companies, ancillary departments — marketing, customer service, communications, etc. — are staffed largely by women and ethnic minorities. As such, these individuals are more likely to be caught in layoffs, since they are considered less essential than those involved in developing and maintaining products.

Black and Asian employees — especially males, sadly — are more likely to be working in technical areas and, therefore, less susceptible to job cuts. But a number of women working in those areas are there because of newer, more inclusive hiring practices. And if they’re working for a company that has a last in/first out tenet in their layoff procedures, they could be affected.

The lesson here: Now more than ever, DE&I is essential. Diverse teams are more innovative, flexible and productive. Clients want to do business with organizations that look like them. And up-and-coming talent want to work in a diverse environment. It’s a top priority for most. DE&I must be a pillar in every business plan. Without it, even the best plans can come tumbling down.