Ever since the tech layoffs began in 2023, they’ve become a troubling new norm. Each week brings news of another company cutting costs, “realigning,” and pivoting toward AI. Just this past week, I connected with at least ten people searching for a new role after being laid off, and I’ve heard about even more through friends of friends.
There seem to be three major reasons this job market feels so challenging right now.
Investor pressure and profitability: Although the 2024 layoffs began as a correction to pandemic-era over hiring, 2025 and 2026 have brought continued pressure. Even companies that are doing well are having to take steps to protect their margins. Economic uncertainty has a way of making everyone cautious. And this isn't just a tech story anymore. Many other sectors are going through the same exercise.
Flatter hierarchies and roles that aren’t coming back: In many cases, companies simply aren't backfilling roles when someone leaves voluntarily. Middle management is quietly disappearing as organizations flatten their structures and ask: do we really need this layer?
AI investment and reallocation: Budgets are being reallocated toward AI, which means ruthlessly prioritizing which teams and roles are essential - and which ones can be cut to fund the shift. A few organizations have already figured out how to use AI to do more with fewer people. The numbers are still small, but the trend is clear.
Healthcare, construction, and skilled trades are actually starved for workers right now, so if you're in those fields, you have more leverage for sure. But white-collar knowledge workers are struggling to find their footing.
Despite the headlines, there is a glimmer of hope. Recently Lenny’s newsletter shared an encouraging look at the state of the product job market in tech. And there’s a lot of good in it. The key highlights from early 2026 are:
High Demand for Talent: PM and engineering job openings are at their highest level in over three years.
AI Explosion: AI-related roles are experiencing explosive growth. No surprise here.
Location Shift: Remote work opportunities continue to decrease.
Design Plateau: Job opportunities for designers have plateaued.
Seniority Shift: There’s a focus on hiring more senior PM roles, with a potential dip in leadership roles like Head of Product
I've met many people who successfully landed new roles even in this market. Here's what they had in common:
Here are 3 things that seem to be most helpful according to them:
Referrals and advocates: A warm referral is still your highest probability path to getting an interview. And if you have an advocate inside an organization who can vouch for how good you are, your odds change dramatically. A previous manager, a coworker who loved working with you can be an amazing connection to reach out to.
Cold applications - done well: Unfortunately AI slob has made its way through automated applications and ATS reviews. But thoughtful, targeted applications still work. These folks stood out for their experiences and doing great at the interviews.
Patience and a financial runway: Most people who made it through found that having three to six months of financial cushion was a game-changer. It kept desperation at bay. They built a tolerance for rejection, leaned into their strengths, and played the long game. They also knew that their mind could become their worst enemy, so they did something about it.
One pattern I keep noticing: people are forgetting how they're showing up.
They are letting their anxious mindset, the job search fatigue and the quiet desperate energy come through on their interview calls. The person on the other side can sense it, even when you think you’re hiding it well. And yet, so many people are not self-aware of they are projecting this energy. Think about it on the next call. How are you showing up?
In this market, its not only about the technical skill set and experience you bring to the role, but your confidence, and a high level of positive energy that makes people want you to join their team. When knowledge is common, communication and likability become the differentiator.
Managing your energy when reality is tough is genuinely hard. But if worrying hasn't helped so far, it might be worth trying something different. Do things between your job searches that sustains your energy - and genuinely feels like refueling. For some people it is their workouts, new hobbies, dance classes, painting, writing, cooking and daily walks. It is an essential human need to be creative. At work it meant solving problems or creating new products and features. Now without that role, you still have to be creative. Whatever it is that gives you energy now, lean into it - because you are playing the long game here.
This market is hard. That’s not in your head, and it’s not a reflection of your worth.
A year from now you’ll be able to tell stories about how you got through this difficult time. For some people its their first time having to face a market like this. Having experienced the tail end of the dot-com burst, I know a thing or two of making it to the other side. Whatever your experience, know that this too shall pass, and you’ll become a more resilient person having survived this.
The people getting new roles aren’t necessarily the most qualified, they’re the ones who stayed consistent, stayed present, and kept showing up in a way that made someone eventually think: I want this person on my team.
Do the tactical work. Apply smart. Build in public. Make new connections. Reach out to the right people.
But don’t lose yourself in the process. Take care of your energy like it’s part of the job search, because right now, it is.
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