Huawei founder Ren Zhengfei expressed his judgment on the future economic situation in an internal Huawei article titled "The entire company's business policy must shift from the pursuit of scale to the pursuit of profits and cash flow."
He said that Huawei should change its thinking and business policies and shift from pursuing scale to pursuing profits and cash flow to ensure that it can survive the crisis in the next three years. "With survival as the main agenda, edge businesses are shrinking and closing across the board, passing the chill to everyone."
Concerns about the global economic recession are intensifying, and many technology companies have announced large-scale layoffs and hiring freezes to cut expenses.
From Apple and Meta, to Microsoft and Netflix - The tech industry that has thrived during the pandemic is showing signs of a downturn.
The news is discouraging enough to cause anxiety, forcing professionals to go above and beyond to keep their jobs.
How can you insulate your career from a recession?
1. Diversify your income streams
Don’t rely on just one way to make money – this is “the best anti-crisis strategy”.
Ideally, look for jobs in different verticals, geographies, and skill sets to diversify your revenue mix and minimize risk. If one of your gigs goes away, it will be easier for you to find a replacement for, say, 30% of your income, rather than losing everything at once.
However, there are alternatives to freelancing or working multiple jobs at the same time.
You can always find a company that offers you multiple projects instead of just one, thereby minimizing risk while maintaining a more comfortable working environment.
2. Participating in the gig economy
The freelance workforce continues to grow as more people demand flexibility and freedom in their work. In the U.S. alone, there were more than 6 million independent professionals as of 2021, according to Freelancer Platform’s 2022 Young Freelancer Economic Impact Report.
"This workforce is estimated to earn $247 billion in 2021, up from an estimated $234 billion in 2020," the report said.
Increased demand for flexible workers is "a great opportunity to escape corporate slavery" and increased earning potential—without quitting or changing jobs.
3. Watch for 'Signs of Trouble'
With the outlook for the rest of the year unclear, venture capitalists are warning their portfolio companies to prepare for tougher times.
Some startups have already taken action.
For example, Swedish fintech giant Klarna, which became Europe's most valuable fintech unicorn last June when it was valued at $46 billion, last week announced plans to lay off around 10% of its global workforce.
They were a VC-backed company that burned through cash...hiring quickly and counting on the VCs to keep pouring in cash. Now things have changed and they are forced to cut back.
Always triple-check the companies you work with as you can often see signs of trouble on a large scale spend, and consider bootstrapped businesses that are conscious of their own money and transparent about their profits.
4. Invest in your skills
Even in the most challenging of times, there are some skills that are in high demand.
“Every crisis is an opportunity.”
recommends researching trending skills and talking to HR or team leaders to “find out how to become a valuable asset.”
"Employers appreciate and promote talented employees who are eager to learn."
