What's Next, Now: February 2023
This month, our crystal ball predicts a long-awaited return to the office, new opportunities for laid-off tech workers, and more.
The tech layoff wave is still accelerating. According to new data from Layoffs.fyi, more than 100,000 tech employees have been laid off in 2023 alone. Big names including Yahoo, Zoom, and Spotify have cut up to 20% of their workforce in the past two months.
But recently laid off tech workers may have another place to turn: the auto industry. While this sector hasn’t been immune to job cuts and disruption itself, the rise of electrification, autonomous and assisted driving systems, and in-vehicle technology is driving demand for top tech talent among automakers and technology partners.
The EV battery industry is especially in need of tech talent. With demand growing, battery producers invested more than $73 billion in planned projects last year. They’ll need to build a pipeline of skilled workers to bring these projects to life.
The auto industry isn’t the only one attracting tech employees now looking for work. As digital transformation becomes the imperative across industries, there will be significant opportunities for laid off tech workers. Demand for software engineers in government was up 36% and 28% in construction in December 2022 in comparison to January 2021, according to data from job search board Handshake. Industries like banking, retail, healthcare, and manufacturing are also in the race for tech talent.
After two years of stop-and-go return to office attempts, office occupancy rates now surpass 50% of their pre-pandemic levels. Cities tracked by Kastle Systems reached return-to-office levels of 40% or more in the penultimate week of January. Though still below pre-pandemic levels, these milestones signal that workers are (finally) returning to the office.
Major companies including Disney, Starbucks, and Paycom have announced mandatory in-person work orders, with requirements anywhere from three to five days per week in the office. And it’s not just businesses pushing for the end of remote work. The House of Representatives passed a bill that will end telework policies for executive agencies implemented during the pandemic. As the pandemic becomes endemic and layoffs continue across industries, the power dynamic is shifting from employees back to employers, making it easier for them to shift policies.
The way we’ve worked has changed because of the pandemic — Maryland is even considering a 4-day work week — but it’s becoming a question of how workers will return to office rather than when. Over the next few months, organizations will be testing strategies to figure out what works best for their business and their employees. Companies looking to bring workers in-office full time are more likely to see success when upfront during the hiring process and are prepared for pushback from employees who have enjoyed working from home over the past three years.
Several news outlets have started to use AI to assist journalists — and to write entire articles. CNET attempted to fly under the radar with its AI-crafted stories, but the tech news site quickly faced harsh criticism for mistake-riddled articles and seemingly plagiarized content. Men’s Journal, a health magazine owned by the publisher of Sports Illustrated, also incurred backlash when it posted an AI-generated article with incorrect health information. Buzzfeed is attempting to take a safer route, using AI just to help produce some of its popular personality quizzes.
The search world seems like a perfect fit for the question-and-answer style of ChatGPT’s AI. Microsoft and Google announced competing products back to back, both claiming their AI will transform search as we know it. But it’ll take some time before the tech can deliver on its promises — Google’s AI is already facing criticism for serving up inaccurate answers. Microsoft is also introducing new constraints after the bot’s initial release.
There’s no question AI is here to stay — but preliminary products are impaired by errors and inconsistencies. Brands will need to find the right balance of when and where to invest. While it’s important to avoid associating with faulty products, brands who wait too long risk being left behind in the automation revolution.
Rumblings of a password sharing crackdown at Netflix began last year with experiments rolling out across Latin American markets. Now, the time is (almost) up for U.S. customers as well. While policy details are still not confirmed (Netflix claimed the first set of guidelines they released were posted in error), the news was enough to spark a wave of backlash against the streaming service.
Social media users were quick to hound Netflix for the plan, threatening to cancel subscriptions. Many complained that Netflix’s content just isn't worth paying for anymore, calling out the streamer for canceling beloved shows after just one season and churning out mediocre material. Netflix has also lost some of the classic shows that originally drew in subscribers, as legacy networks create streaming options and pull content onto their own platforms (Bye-bye, The Office and Friends). With top original content spread across services, the streaming industry has become a crowded space where Netflix is struggling to stand out, no longer the pioneer it once was.
Because of the overabundance of streaming services, bundling has become the standard. The Disney-Hulu-ESPN combo has so far proved successful, and Discovery+ and HBO Max are in the process of combining. Paramount also recently announced plans to bundle Paramount+ and Showtime.
While Netflix redacted its original U.S. plan, it continues to roll out new password sharing rules in other countries, including Canada, New Zealand, and Spain. Based on original results in Latin America, Netflix expects to see a proportion of users cancel their subscriptions, but its overall number of users to grow over time. Combined with an oversaturation of the streaming market, this crackdown may lead to consumer burnout and users pulling back on the number of streaming platforms they subscribe to.
You’ve heard of #CottageCore and #GoblinCore — now, get ready for #RecessionCore. Instead of shelling out for luxury brands and pricey products, consumers are looking for dupes, or cheaper replicas of their more expensive counterparts.
Made an influencer-inspired purchase you now regret? This time, listen to the de-influencers: creators sharing which TikTok-famous products you shouldn’t buy.
Now that video has officially been crowned king of social, is it time for a photo revolution? Photo carousels are taking over TikTok, and Instagram claims it will start to balance the algorithm to show more photo posts.
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