Intro commentary from Keith Cline, Founder of VentureFizz
Coming in hot off yesterday's news of Meta's plan to reduce headcount by 5%, we have our annual 2025 Tech Industry Hiring Predictions & Poll results. This is the third year we've run this poll and ask HR & Talent Acquisition leaders to provide some of their own insights. Here are links if you want to see prior editions: 2024 & 2023.
Back to the Meta news, from what I've read, the company is looking to let go of under-performers with the intention of backfilling the positions with higher caliber people in 2025. So, that is a bit of mixed news...
I've also seen some people in my LinkedIn feed announcing that they have been laid off after the holidays, which was definitely shocking to me. Certainly, not the start I was expecting as we kick into 2025.
Looking back, 2023 was a year of massive layoffs and cut backs, while 2024 was a very frustrating year where there was just a steady stream of layoffs. Like a slow ripping off the bandaid year. Many times throughout 2024, I wondered... how are layoffs still happening? Yes, there are always economic cycles where we see ups and downs...but it's been 3 years of layoffs.... the longest cycle I've ever seen since I started in the tech industry back in 1998. So, how are layoffs still happening in January of 2025???
Now, if you've read my predictions in previous years, you’ll know I’m generally an optimist. This year is no different. I do believe that the layoffs will taper off by the end of Q1, as I see them primarily being the result of companies making tough calls while budgeting and forecasting for 2025.
What’s more promising, though, is that we’re likely to see a shift toward incremental hiring, particularly in the second half of the year. Here's why I’m confident about that:
- The AI Shift is Creating Buzz: The excitement around AI and its transformative potential for tech companies is real. As this platform shift continues to gain momentum, it’s sparking a wave of innovation and new opportunities.
- Founders Are Back in Action: Repeat founders are building again, many of whom are capitalizing on this AI shift. These entrepreneurs are uniquely qualified to build future anchor companies.
- Positive Trends for VentureFizz: In Q4 of 2024, we saw the first uptick in new companies joining VentureFizz in 3 years. Plus, we are seeing an increase in inbound demand again. In addition, it appears as though we hit a low point for job listings in August 2024, as we’ve seen a steady rise since. All of which signals positive momentum.
- Macro-Economic Signals: The U.S. job report closed out 2024 on a strong note, with 256,000 new jobs added in December, signaling that the broader economy may be picking up steam.
All in all, the mood heading into 2025 feels distinctly more positive, and I’m sticking to that outlook. The second half of the year should bring renewed hiring activity, especially in the AI and tech spaces. While the early part of 2025 may still feel a bit uncertain, the long-term outlook looks strong.
Let’s embrace those positive vibes—2025 is going to be a good one!
2025 Hiring Predictions Poll Results
Each year, we issue a poll on LinkedIn asking our audience to chime in. This year, we had 172 responses. There seems to be more optimism this year, with the most popular answer being 'Hiring again at a slower pace"
Here are the results:
Hiring Predictions
In addition to getting feedback from the VentureFizz audience, we also reached out to Talent Acquisition & HR pros to get their predictions for 2024.
Please note, the views and predictions expressed in this blog post are representative of the individual's thoughts and opinions. They are not representative of the individual's employer.
Sean Page at Propel
Talent Acquisition Manager
"In 2025, we'll see revenue generating areas within businesses continue to scale up (i.e. engineering, sales, and marketing) while other areas of the business will remain flat (i.e. operations). Candidates will continue to prioritize remote or hybrid roles over in-office roles, which means small, remote first companies will be slammed by more applications than they anticipated as large tech companies double down on RTO (return to office). Candidates will focus on upskilling their knowledge and skills around AI, machine learning, strategic problem solving, analytics and other highly sought after skills. Businesses should focus on retention tactics as there'll be an increase in attrition due to lack of recognition, career growth, or increased compensation. We'll continue to see an upward trend of employees leaving companies to start their own business."
Rick Silva
Director Corporate Recruiting at Agero
"I think hiring will be robust as the job market continues to adjust to the post-Covid world. AI and automation will continue to drive growth across industries. Candidates with skills in AI, ML, data analytics, and operational excellence will remain highly sought-after. In addition, there will be ample opportunity for non-technical talent to be upskilled in AI and add value to this ever-changing landscape. Employers who prioritize candidate and employee experience, workplace flexibility, development and wellness will remain desirable places to work."
Kate Morgan
Founder & CEO at Boston Human Capital Partners
"Software tech is in a tough spot right now. Overhiring flooded the industry, driving competition and compensation to unsustainable levels, especially for early-stage, VC-backed companies. Meanwhile, PE firms are snapping up businesses, focusing on evaluating human capital rather than hiring aggressively. It’s a perfect storm of market correction and consolidation. In 2025, the industry will still be using this time to recalibrate"
Larry Jacobson
Vice President, Talent Acquisition at SimpliSafe
"I think we will continue to see a disjointed hiring environment versus a broad trend one way or the other. Companies like ours that are successfully balancing growth and profitability and didn't get over their skis at any point during, or after, COVID will continue to hire to support innovation and growth initiatives. Others that were forced to scale back and are struggling for that growth/profitability balance will continue to hire in pockets (AI, Engineering) but not invest broadly and may continue to constrict overall headcount. There seems to be momentum (and a lot of dry powder) that will fuel hiring for earlier stage companies once (if?) the uncertainty of the new Administration subsides. I think it's going to be choppy for the first half of '25 and then start to accelerate. "
Emily Barden
Senior People Manager, US at Attensi
"Hiring leaders should be prepared to be considering and evaluating candidates who might have a bit more breadth of experience rather than depth. As businesses go through RIFs, restructurings, etc., which I suspect will continue to trickle throughout 2025, the folks that stay on board are now being asked to do more with less resources. Meaning, as hiring leaders, we need to be prepared that we might not be seeing candidates who had the luxury of being hyper-focused in their core role because of the additional hats they need to wear. I believe hiring teams will need to be better equipped to evaluate and assess candidates skillset, potential, and motivations for roles offering more depth, rather than breadth. "
Mary Paris
Director, Talent Acquisition at PERSUIT
"In 2025, we’ll see hiring start to pick up, especially in companies that are doubling down on AI, innovation, and digital transformation. While some industries might still approach hiring cautiously, businesses that are focused on future-proofing and building for the long term will be growing their teams. It will be equally important for companies to also invest in professional development for their current employees to gain skills within AI and innovation."
Zak Kovat
Director of People & Talent at ezCater
"I expect that the days of blitz-scaling and hypergrowth are generally behind us, and instead, companies will take a more intentional and moderate approach to hiring plans and practices. Hopefully, this "new normal" leads to greater stability across tech and results in candidates having a better experience. On top of that, I anticipate that a lot of companies' focus will continue to shift towards employee engagement. Retaining, coaching and driving productivity among current employees will take priority over hiring new ones. Talent teams will continue to run lean, while investing in quality sourcing, AI and compelling software - all to be as efficient, intelligent, and impactful as ever."