As demand for tech talent outstrips supply in Asia, job seekers with relevant skills remain highly sought after despite ongoing sector volatility.
SINGAPORE: As economic uncertainty looms, tech companies have significantly reduced their workforce this year. Analysts argue that these layoffs, including those at Shopee, are necessary for the industry’s long-term health.
Major companies like Netflix, PayPal, and Tesla have downsized their workforces, and in Singapore, e-commerce giant Shopee has also conducted layoffs, citing escalating losses and slower revenue growth.
However, experts suggest that such mobility within the tech sector can foster innovation and growth. “Labour mobility is essential in the tech ecosystem, especially among start-ups. The flow of talent to and from tech companies and institutions fosters innovation,” stated Assistant Professor Ng Weiyi of the National University of Singapore (NUS) Business School on CNA’s Heart of the Matter podcast.
Asst Prof Ng noted that research shows around 90% of start-ups fail to secure venture funding. “When you’re let go from one of these start-ups, you join another tech company, and that cycle fuels ongoing innovation,” he explained.
An Industry in Transition
The current tech landscape has been characterized by significant job cuts. Sea Limited, the parent company of Shopee, previously raised approximately US$6 billion through a major fundraising effort. Yet, just a year later, the company made headlines by rescinding job offers shortly before new hires were set to start.
While Sea’s situation could have been managed differently, Ms. Yorlin Ng, COO of venture firm Momentum Works, emphasizes that layoffs and restructuring are often necessary adjustments in response to changing economic conditions. “Sea has been growing rapidly, focusing on growth over efficiency. However, as seen in other tech firms, restructuring is a regular occurrence,” she noted.
The tech sector’s explosive growth during the pandemic led to a “growth at all costs” mentality, resulting in excessive hiring and spending. However, with geopolitical tensions and a shift back to traditional retail environments, companies now face the imperative to generate profits rather than simply growing at any cost.
Skills Demand Amid Uncertainty
Despite the volatility in the tech industry, there remains a strong demand for skilled professionals. According to consulting firm Mercer, tech talents are increasingly sought after in Asia, particularly in fields such as artificial intelligence (AI), machine learning, cybersecurity, and e-commerce. Hiring trends continue to favor technological competencies, as highlighted by a report from recruitment agency Robert Walters.
Asst Prof Ng noted a rising interest in entrepreneurship and technology courses among students, particularly those in engineering and science disciplines. “The demand for entrepreneurship classes and cross-disciplinary collaborations at NUS is growing rapidly,” he remarked.
However, Ms. Ng cautioned that while Singapore strives to advance in technology, some employees exhibit a reluctance to think creatively. “Mindset is crucial,” she said. “We need to encourage boundary-pushing and logical thinking. These skills must be applied daily for meaningful progress.”
In summary, while the tech industry grapples with the consequences of economic shifts and layoffs, the underlying demand for skilled professionals remains strong, underscoring the dynamic nature of the sector.
