A number of tech companies have announced massive job cuts and hiring freezes to curtail spending amid growing fears of a global recession.
From Apple to Meta, to Microsoft to Netflix, the boom in the tech sector during the pandemic has soured.
“This news is discouraging enough to cause anxiety, forcing professionals to go above and beyond to keep their jobs,” according to Aleksandr Volodarsky, CEO of Lemon.io, a freelancing marketplace for software developers.
What can you do to recession-proof your career? Look what CNBC Make It has to say.
Diversify your revenue sources
It’s best not to rely on one method of making money alone — according to Volodarsky, this is the “best anti-crisis strategy.”
“Ideally, look for gigs in different verticals, geographies, and skill sets to diversify your income portfolio and minimize risk. If one of your gigs shuts down, you’ll have a much easier time finding a replacement for, say — 30% of your income rather than losing everything all at once.”
“Every crisis is an opportunity.”According to Volodarsky
As an alternative to freelancing or working multiple jobs at once, there are other options available.
“You can always find a company that offers you multiple projects rather than just one, thus minimizing risk while still staying in a more comfortable work environment,” Volodarsky added.
Become a part of the gig economy
As people increasingly seek flexibility and freedom in their working lives, the number of freelancers has grown. Based on Fiverr’s 2022 Freelance Economic Impact Report, there were more than 6 million independent professionals in the U.S. alone as of 2021.
As per the report, “This workforce is estimated to have earned $247 billion in revenue in 2021, up from an estimated $234 billion in 2020,”
Volodarsky cited the increased demand for agile workers as a “perfect opportunity to escape corporate slavery” as well as increase earnings potential without giving up your job.
“If you do leave the corporate world, don’t worry about having to spend an incredible amount of time building professional reputations before getting your first cent.”
Pay attention to ‘signs of trouble’
Venture capitalists warn portfolio companies that they should prepare for more challenging times as the year concludes.
Some startups have already taken action.
Klarna, the Sweden-based fintech giant valued at $46 billion last June when it became Europe’s most valuable unicorn, announced last week that it was looking to lay off about 10% of its global workforce.
“They are VC-backed companies that burned through cash … fast-tracked hiring, and counted on VCs to keep pouring in cash. Now that the situation has changed, they’re forced to cut back,” Volodarsky said.
“Always triple-check the companies you work with, as you can often see the signs of trouble in massive spending, and consider bootstrapped businesses that are conscious about their funds and transparent about their profits,” he suggested.
Take the time to develop your skills
According to Volodarsky, there are skills that remain in high demand even during the most challenging times.
“Every crisis is an opportunity.”
According to Volodarsky, you should research skills that are in demand or speak with human resources to “find out how to become a valuable asset.”
He further added, “Employers appreciate and promote talented staff members who are eager to learn.”