Layoffs in the technology Sector and their Impact on remote work

Layoffs in the technology

The current situation in the world of technology is one of uncertainty and constant change. Many #tech companies are experiencing a decrease in their revenues and are cutting costs, which has resulted in an increase in layoffs in the industry. Although in the past, employment in technology companies used to be considered a secure job, nowadays this is not necessarily true. The demand for human labor has decreased in some areas, and there is increasing pressure on workers to be better and more efficient.

The technology sector:

is one of the most dynamic and fast-moving in terms of change and evolution. It is constantly transforming and developing, just like the capital market. This modifies the plans of #tech companies. The focus is no longer on growth, but rather on profitability.

Investors are increasingly seeking technology companies that can demonstrate their ability to generate sustainable revenues and maintain a competitive advantage in the long term. This means that technology companies must be more aware of the risks and opportunities that arise as technology evolves and markets change. They are feeling the pressure to be more transparent about their strategy and financial results. Investors are demanding more information and accurate data on the performance of technology companies, including information on profitability, growth, and the ability to maintain a competitive advantage.




The increase in global competition:

is playing a significant role in the context of layoffs in the technology sector. With more companies competing for a share of the market, many find it difficult to stay afloat and cut costs by eliminating jobs.

Repeated layoffs shake the stability of full-time employment, leaving a pool of highly skilled talent available to join the freelance remote talent mode. Reconsidering their job security and eager for greater control and flexibility over their time.

Work dynamics are changing as much as this industry

Faced with the massive reduction in personnel that prominent companies are carrying out, different hiring models and opportunities that respond to the concerns and interests of new talent become relevant. In this way, a conglomerate of technology workers is created, available to participate in new projects.

Furthermore, layoffs can also affect the work culture of a technology company. Technology companies often have unique work cultures, based on collaboration, innovation, and teamwork. When a company lays off a large number of employees, it can negatively impact the morale and work culture of the company. The remaining employees may feel less committed or even fearful of being the next to be laid off.

Despite the instability, many niche companies continue to grow and expand. There is a high demand for skilled individuals in areas such as artificial intelligence, cybersecurity, robotics, software development, data analytics, etc.

In this context of accelerated transformation of the technology sector, the constants to face the new labor organization seem to be two: flexibility, remote and asynchronous work.


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It is impossible to compete with those who enjoy and love what they do

The Head of Operations in a company not only is in charge of avoiding and reducing failures that do not add any value to the organization but they also try to optimize processes in order to make them more efficient by means of strategic initiatives. Pablo Zuccarino is the Head of Operations in The Flock and told us about the challenges he takes up and the satisfaction he feels in such a job in a startup, where he is ready to draw up on the blank sheets.


How do you deal with time management and processes of this kind of ground-breaking company which does not have any how-to manual?

Such a good question, as every company is different and the startups in particular do not have any magical recipe for resolving problems. What I often do is to make agreements among teams that let us work in an organized and efficient way. As an agile person, I am always open to change and many times we apply the Lean manufacturing process for continual improvement. In organizations like this one, with such an exponential growth, procedures are hard to organize due to constant change. However, by using continual improvement, we adapt our processes in small pieces to constant change. The most important thing for us all is to be efficient so the changes can be transparent within our procedures for both the Flockers and our customers.


Where do you start from when accelerating processes? How do you focus on a potential problem?

I start by doing an assessment of the place or organization that asks for the process’ improvement. The aim of that need and the expected outcome are established. Then the Pareto principle (80/20 rule) is applied in order to prioritize the needs of improvements that are found and to make changes in the required processes for obtaining the greatest benefit in the shortest time possible.


Can you describe a Head of Operations’ typical day?

Really busy. The Head of Operations is focused on every process functioning, on the project’s follow-up and on guaranteeing a proper service for the clients. But above all, we want to make sure the Flockers know this is the best place to work and that the clients consider us as partners in their developments rather than simple software service providers. It is essential to do a daily follow-up of projects and processes without neglecting the long-term strategic aims.


Which is the greatest challenge when setting your goals?

Within a start-up, every goal is a challenge. There are too many things to do, changes take place very fast and that is the attractive part of short, middle and long-term aims. It is relevant to identify the quick wins that enable us to make quality leaps in our growth. It is also vital to be defiant with the objectives but at the same time being a bit conservative on some occasions. An uncontrolled growth may cause big problems in the processes at the expense of the customer service quality. That’s why our main objective is to grow as fast as possible without giving rise to risk in our service quality.


Which is the most difficult methodology to apply and why?

There are no easy or difficult methodologies to apply. The challenge arises when you work as a change agent in the company you are collaborating with and there is no applied methodology.

It is common that there is some resistance to change and if there are no outcomes or synergy among the teams, it is really hard to generate change opportunities. I used to work as an agile coach for a bank where I worked with a big team and there was a huge resistance to methodological changes.

We agile workers tend to come across as relaxed when you meet with people who are used to working with more traditional methodologies and that generates mistrust. I got really satisfied with the end of the year’s feedback: “This thing about agility gives good results, I didn’t believe it at first but now I see it more organized and we can see the improvements more clearly.”


Which is your slogan when working?

“Have fun”. It is impossible to compete with those who enjoy and love what they do.

I constantly get enormous satisfaction from the work we are doing in The Flock, which is really entertaining. New challenges are continually arising and that make us improve every day.


Why are startups so attractive for remote talents?

Because of the flexibility and constant innovation that most of them offer. Those who work remotely are not comfortable with the idea of office work and like to manage their own time. And startups allow that. People work by objectives that are in general very challenging but they are able to manage their own time and energy. In most cases, the startups offer great challenges related to technology and continual improvement which is important for those who dare to go beyond and face them.


Which are the main challenges of designing processes and establishing them in a remote work enterprise?

Most people who work remotely, either digital nomads or freelancers, usually do asynchronous work. So they adjust their timetable the way they want. The challenge is to synchronize in an efficient way their work with the rest of the team. By means of agile methodologies, specified requirements, repository management and automatic deployment processes it is possible to achieve this even when working from different time zones.


Which is the difference between doing a job in-person in a company and doing it remotely?

In my whole life I have worked in-person, hybrid and remotely. I consider it is completely possible to work remotely and even more efficiently, as you can invest the commuting time in personal tasks, such as going to the gym or picking up your children from school. However, it is also a nice thing to often meet your colleagues to build better relationships within the company.

It is essential to be organized with time management when working remotely. You should follow certain behavior rules and be able to fulfill the established goals. If we are not able to control this, we may be not doing our best to fulfill the goals or we may be going through a burnout due to working 14 hours (which was so common at the beginning of the pandemic, when people were not used to remote work.)

Today’s worldwide trend is remote work, The Flock knows it and it is ready for this increasing way of working.


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Latin American Talent has the key for succeeding in a remote world in their DNA

Remote work has increased 91% in popularity over the last 10 years. After the Covid19, it has grown and it has accelerated processes that some companies had already started. Within this new working model, many challenges have arisen but they must be turned into chances. Today it is no longer necessary to be from 9 to 6 in an office to develop professionally. The freelance modality allows workers to manage their own time given accomplishing goals or objectives it’s what is really important. Not where or at what time you are working. Given freelance and remote work are growing exponentially the recruiting world is changing too and now ONLINE has become the main way for connecting with new talent. The biggest demanding task in this post-pandemic era is, at the same time, the biggest advantage of remote work. Nowadays all meetings and interviews are virtual and, although that has provided a wide variety of possibilities when recruiting talents because of the access to people all around the world, it has also taken out an essential part of communication, the non-verbal one.

The most significant challenge for organizations is how to make the best talents work in their company when there is such a great offer in similar conditions. What makes The Flock different from the rest is that despite being freelance #flockers that join the team and certain projects, the enterprise culture is above all the employees. There are activities in common in order to gather and meet each other no matter where they are. The Flock is above all a COMMUNITY of talented tech freelancers, where they can access challenging projects globally, self-managing themselves 100% but being also part of a network that supports them and that they can rely on.


The distinctive feature of the Latin-American talent is contained in its DNA

According to the UN, in 2020 remote work was only considered as an option by 3% of the population. Today between 20% and 30% of Latin Americans work this way.

The great difference in all Latin America, not only in the labor market, is that people who are born and live in this region have a more adaptable personality to change. Since childhood, adaptability comes from the culture and the situations experienced in this zone. And that makes them a talent hub for companies outside Latin America. People from this region are brought up in an economically and, in some cases, socially unstable context, which allows them to develop an adaptability and flexibility capacity different from people from the rest of the world.
Doubtlessly, this feature is key when having to work remotely. Currently, the balance between personal life and work is clearer than before the pandemic. Home office stabilizes these two aspects. It is no longer only a “benefit”, workers do not only look for an attractive salary but they consider the offer as a whole. And that involves an equilibrium between work and personal life and a more flexible schedule and conditions.

Today’s workers want to be evaluated for the value they provide and not for the volume. And the question here is how to build confidence in the digital world. Micromanagement (personnel management philosophy that involves the strict supervision of the assigned tasks to employees by the manager or a hierarchical superior) is a waste of time and energy and it generates distrust not only from the leader to their team, but also the other way round and the best results come from teamwork and synergy indeed. It’s the leader who must create that confident relationship so their team can work efficiently and independently without worrying about insignificant matters.


The challenge of retaining talent

Before it was common for a professional to stay the whole career in the same organization but these days it is more frequent for talent to change jobs and enterprises and even to work simultaneously for many of them. This represents an explicit and implicit fact. Both parties are aware of the ‘threats’ within the labor market which can tempt the resource drain. Is this the end of the company’s presence? As stated by Forbes Magazine, the main millennials’ ambitions are 57% travel, 52% being rich, 49% buying a house, 46% having a positive impact on society and 39% raising a family. Therefore, every talent wants to add new experiences, instead of accumulating years of experience. They want to work how, when and where they want. They are no longer interested in a career in a company with rigid hierarchies, they want to work with leaders from whom they can learn, and work on challenging and impactful projects.

So, the question is how to retain talent. In relation to freelance talent digital platforms, the key is to provide support for them so they can focus on their tasks without dealing with matters that are not of their competence. This is what happens in The Flock. Every employee works in the area they love and then the community supports them in order to perform well in their objectives.


Opportunities: the launch pad to success

Despite the labor market is more and more competitive due to the endless chances of online self-learning courses, it is no longer necessary to have university degrees that guarantee the talent’s knowledge. Every talent has something good to offer and the only thing that separates them from success is the chance of showing their abilities and skills. The Flock offers multiple challenges and projects in which each talent can develop without worrying about anything but their work. Clear goals, a supportive community, and the opportunity to start the life you long for.


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How to manage IT remote teams – 5 key aspects

The era of fully in-person work is going through a transition toward another working model. There are plenty of ways of making up, maintaining, and leading teams without having to meet face-to-face in a physical space, but this is not exempt from risks, which we must be ready to face.

Taking into account the changes that are taking place in the current world and, mainly, in the labor market, new demands and new stages appear, where it is possible to develop projects at a faster pace and at other spatial levels. These projects are interconnected from different places of the world and it is also feasible thanks to other team dynamics.

Asynchronous work, technological agility and the chance of identifying the geographical location of talents in any part of the world have become really interesting considering that, at this moment, there are other ways of designing, achieving and sharing projects.

Nowadays, there are many digital tools which let us use agile and flexible methodologies in order to assign the roles and tasks among the members of each team, organize the schedule of every activity and establish assessment and revision methods. At the same time, it is possible to come to common agreements related to each project.



Regarding the IT area, the necessity of finding skilled personnel leads to the search of new talents by outsourcing and, at the same time, to the constant training that the new employees are offered in order to undergo daily challenges.

There are more and more companies that decide to work remotely but they do not know how to do it or fear failing during that process. In spite of that, it is completely profitable. Beyond the economic benefits that are obtained after that decision, it is also true that leading teams remotely means putting faith in new working methodologies and internal and external strategies of communication. The result of these changes can be seen in better working conditions and greater creativity, productivity and efficiency. So, when workers feel more at ease in the enterprise, they are likely to remain there.

The key is to generate a good work environment by creating mutual support conditions, where challenges can be seen as an opportunity to move forward and grow as professionals and not as an obstacle that prevents them from improving their performance.

The IT talents that are part of the teams feel the necessity of incorporating technical competencies and soft skills so as to fulfill their tasks properly and, in many cases, employers must invest in training to achieve that.

Therefore, it is logical that many companies feel that when modifying their work structure, they lose control on the process and the implementation of the planning. However, at this point, it is also essential a supervision strategy and the chance of a fluent communication, where everyone’s position is appreciated, so both of them know they are going on the same track.  


Now, let’s speak about 5 key aspects when leading IT teams remotely:

  1.   Set out the working time: every planning requires to set the goals to fulfill, the way of measuring results and, at the same time, it is necessary to fix the deadlines that must be met by the team and the personal time of every worker. It is essential that this planning makes it possible to organize the personal schedule and the quantity of hours assigned to work, because if there is a balance between both of them, performance and productivity in the execution of projects are likely to improve. The way of solving difficulties must also be identified in a responsible way.
  2.   Make a constant follow up: as they are not in the same physical space, both employers and employees need to get in touch to move forward in each stage. Although it is true that when working remotely those distances seem to be longer, the leader of the team must get together with the other members not only through video conferences or video calls but also through common documents where they share the improvements, so as to evaluate the development of the project, revise the KPIs and make the necessary modifications.
  3.   Strengthen the communication: it is key to set out communication channels by means of which notifications, announcements, updates related to the team and relevant information will be sent and shared. It is also essential to coordinate online meetings between the leaders and the people involved in the project, so they can speak about their ideas, suggestions and contributions. Taking into account their needs and answering their questions lead to a fluent exchange that makes the improvement feasible in a fast and clever way.
  4.   Promote and develop confidence: it is important to appreciate empathy, offer attentive listening and promote respect among workers. This makes it possible to develop a confidence environment where everyone feels accompanied by the rest of the workers in order to achieve the common goals. They should also be helped by their leaders to overcome any obstacle and learn from every experience. The fact of having the chance to express their feelings, expectations and aspirations in front of others causes a better understanding, willingness and commitment towards the job they are performing.
  5.   Appreciate the achievements at an internal and external level: this is an effective way to encourage the employees to continue developing their tasks and being part of the team. The appreciation can be within the enterprise or in a public way. This will boost their self-esteem, raise their desire for growth and success and, therefore, they will feel totally encouraged.

In this sense, considering some trends, such as the Gig economy, which leads the way to the future of the business market, it is clear that the leadership of IT teams remotely is completely beneficial, as it is a tool that enables to offer greater temporary job opportunities to skilled personnel (by objectives or being part of certain projects). At the same time, it makes possible a coordinated job that balances the need of keeping certain flexibility and independence and the need of producing in a current context of high competence and hyper-specialization.


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The secret of effectiveness lies in a Culture of Open Talent

Nowadays, companies are going through a crucial moment as they are almost forced to innovate some practices and dynamics in accordance with these times but without giving up old work schemes (in which the physical presence in the office was one of its requirements).


Therefore, the complex company culture is constantly changing by means of the use of technologies and Internet, which allows more and more new and better ways of exchange, beyond working face to face.


The new searches and needs of both enterprises and freelance workers show the current reality of the labor market.


Companies are facing the dilemma of continuing with their talent recruitment and selection processes as they have been doing for ages or looking for new ways of recruitment.


One thing is certain, they are immersed in the new virtual model, so they are not exempt from using platforms and digital resources at work. The opportunities that can be obtained with this new situation justify the importance of respecting and including the diversity of available options in the known schemes.


So the idea is to create an open talent culture by keeping in permanent contact with collaborators and other companies, increasing the talent sources by looking for more flexible and open ones, generating more dynamism inside the enterprises and encouraging the talent flow respecting its time, roles and specific needs.


All of this requires a total commitment in the recruitment of new talents.


The aim is to prevent a company culture from keeping closed in on itself, blocked and rigid. In this traditional talent system, there is little resources flow and there are not enough movements in order to make the exchange profitable.


Most organizations, even the ones that belong to fields that change constantly, keep on being involved in a traditional working model – the permanent employee who has a fixed schedule. That model is no longer able to follow the rhythm of the huge informative and technical change which it has to respond to and the speed at which it has to do it.


Promoting an open talent culture does not mean that we must accept everything equally, as this may cause the system to disorder. When we allow more exchange, there is more energy, ideas and tasks flow which are aimed at creating innovative solutions within the organization.


In this context, the foundations of the open talent culture are:

  • Transparency and openness. Once the new temporary members are incorporated, there is new constant information and methods to solve problems. The openness to new information and methodologies are the key for the company success.
  • Agility and dynamism. Open talent cultures are abundant in suggestions and experiences from freelance workers who, as a global community, provide a specific approach in order to share new tools and methods.
  • The incorporation of global talent promotes the addition of different cultures and ways of thinking. The fact of having a culture which is focused on inclusion will improve the results significantly.
  • Collaborative environment. It is essential to understand that, in order to achieve the best performance of remote workers, we must collaborate in an open way.
  • Management by objectives. Open talent cultures hire employees who work by projects. The enterprises that apply this methodology have less permanent labor relationships.
  • More predictability. One of the main problems of an organization is to be able to know which actions it may need in the future. In this context, with an open talent culture, the functions of the employees are reduced and remain without internal background that makes them unable to operate. There is no prejudice when leading change.



What’s the use of keeping a fixed work team in which its members feel blocked, without any chance of growing and even any clear goals? For what purpose do we resist to take advantage of the new work dynamics?

The current work models must be more and more aligned with the hybrid schemes and the dynamism of the context in which they are developed. Having a close talent culture which does not go together with the external events and trends causes the loss of effectiveness in all of its organizational levels.

An enterprise that maintains its open talent culture, with its front doors in constant movement allowing employees to move freely, is likely to have more effectiveness when showing the results.

This is not a new trend but the promoters of the open talent culture allow the mixed and flexible labor force to increase at a pace that has not been possible so far.