Silicon Valley's layoffs only get worse: Amazon's building in Sunnyvale. The nonprofit sector is waking up to new opportunities to attract technology talent.
The technology industry is still undergoing periodic restructuring. Tech stock prices rose more than 40% in 2023 and will continue to rise in 2024, but employment is declining. Hundreds of thousands of technology workers have lost their jobs over the past two years.
Based on the latest announcement (more than 50,000 more job cuts by 2024), this trend looks set to continue. The silver lining to technology sector layoffs is that it provides an opportunity for some of the tech workforce to refocus on actively helping humans rather than maximizing profits.
The fact is that the health of 95% of humanity (that is, the not-so-wealthy majority) and the planet does not fit into the industry's bottom line. The urgent needs of global society are too often overlooked by technology companies increasingly focused on pursuing greater profits. Markets are not profitable enough to meet very important human needs.
Fortunately, people who work in the technology industry actually think about the big picture. They're not crazy about the idea that their life's work is just creating better ads to sell products (and politicians) that consumers don't actually need. . Or we may develop technology that makes poor people even poorer.
The pandemic, combined with mass layoffs, has caused many technology professionals to reexamine their work lives. They realized they didn't have to go to the office or spend hours commuting every day. Many people are looking for flexibility and more meaningful work in exchange for higher incomes.
Work that impacts society has many meanings. In the same way that software and data have been used to create a wealthy few, technology will be used to find solutions to big and vexing social problems such as education, health, and climate. There is a possibility. What if, instead of stripping and exploiting personal data, data was used to put power back into the hands of those who need it most?
The nonprofit sector is also beginning to wake up to the opportunities of technology. Could a modest investment in technology enable current staff to deliver twice as much social benefit or raise twice as much money? How can multiple organizations work together to create technology solutions that work for everyone? Can it be built?
A new class of technology nonprofits is emerging. Just like specialty software companies that develop software for dental offices and restaurants, there are also companies that create software for other nonprofit organizations. More nonprofits are leveraging exciting technology to enhance their programs. These days, any type of ambitious organization needs technology to succeed. Peel back the lid on an exciting, award-winning nonprofit that's growing its impact and you'll find a technology team of product managers, software developers, and data scientists.
A new wave of risk-taking donors is also emerging. These donors understand the importance of investing in data-driven research and exciting new social enterprises. They are comfortable taking risks and making philanthropic investments in technology.
Let's not let today's crisis in the commercial technology industry go to waste. There is a huge opportunity to invest some of our vast technological talent and wealth to improve the lives of billions of people. Thousands of jobs could be created if a small portion of that increased wealth went to a new wave of tech nonprofit startups focused on maximizing social impact rather than maximizing economic profit. There is a possibility that If even just 5% of those affected by tech sector layoffs could use their skills for social good, they could transform sectors that impact society.
Humanity and the planet need these technology talent and investments to address the urgent problems we face and improve our collective future.
Jim Fruchterman is a technology entrepreneur and founder of the Palo Alto nonprofit Tech Matters.
