Why Are IT Teams Still Growing in 2023? Insights from the Linux Foundation Survey

The Linux Foundation’s new report shows that 37% of IT hiring managers added new staff in 2023, while about 34% kept their workforce unchanged.

Despite large‑scale layoffs at FAANG companies post‑pandemic, most organizations did not cut staff in 2023; 37% increased technical headcount and only 29% reduced it overall.

Cloud providers reported the highest hiring surge (59% planning to add technical staff), whereas hardware and software firms were more sensitive to the economic cycle, with only 28% expanding and 37% reducing staff.

The report also notes a positive sign for those who were laid off: a Boston Consulting Group study found that nine‑tenths of tech workers dismissed in 2022 found new jobs, often with better positions.

However, economic worries persist. About one‑third of respondents are more concerned about the economy’s impact on their organization in 2024 than in 2023, and 46% say their concerns remain unchanged. Larger IT firms (over 5,000 employees) show even higher anxiety (49%).

The survey, conducted from late December 2023 to early February 2024, involved 418 participants who hire or recruit IT professionals, with three‑quarters hiring for their own teams or departments.

Training and Personnel Flow

47% of hiring managers use cross‑skill training to fill skill gaps, and 43% focus on upskilling new hires and existing staff, while only 29% rely solely on recruitment to address vacancies.

Organizations have sharply cut most forms of skill training, especially those requiring significant employer financial support. For example, while 49% said they would send employees to technical conferences in 2023, only 23% reported the same in the current survey.

New technical hires often take a long time to become productive, and once onboarded they are more likely to leave or be let go within six months.

In 2023, the average time for a new technical employee to reach normal proficiency was three months; this rose to 4.8 months in the 2024 report. Overall, 64% of organizations now report onboarding periods longer than four months, up from 32% in 2023.

Recruitment cycles have also lengthened. Hiring a technical employee took an average of 4.68 months in 2023, increasing to 5.4 months in 2024. Only 36% of organizations filled positions within three months, down from 48% the previous year.

Retention remains challenging: in 2023, 23% of organizations lost more than 40% of new hires within six months; this figure jumped to 52% in 2024.