A Hyderabad-based software engineer claims he is “dead scared” to take a loan right now due to lack of job security. Mutha Nagavamsi shared an X post where he obliquely referred to the climate of fear in the IT industry brought on by frequent layoff cycles across companies.
Nagavamsi compared the current scenario to a few years ago, when software engineers could take on loans without a second thought, thanks to decent job security. He claimed that today, most people are unsure whether they will even have jobs in the future, and are hence hesitant to take on a financial obligations.
‘Dead scared to take loan’
“I'm an engineer. And I'm scared to take a loan right now. 5 years ago, software engineers used to take loans left, right & center. There was decent job security,” then,” the Hyderabad techie said in his X post. “And now... no one has a clue on what's coming in 1 year. So I wonder, is it just me or does everyone have the same problem.”
The comments section reflected Nagavamsi’s anxieties. Several professionals claimed to have cut down their expenses in preparation for any possible bad news in the future.
Layoffs in tech
{{/usCountry}}The comments section reflected Nagavamsi’s anxieties. Several professionals claimed to have cut down their expenses in preparation for any possible bad news in the future.
Layoffs in tech
{{/usCountry}}In the last 12 months, the IT industry has gone through another wave of layoffs, with the biggest reasons being aggressive investment in AI and restructuring around automation.
“If software engineering salaries are cut by AI and/or the industry shrinks dramatically, there will be a lot of people that can't afford their old lifestyles including their old credit card bills, mortgages and other loans,” a user pointed out.
“I am sure it’s the same case for most of us, IT jobs are very unpredictable these days,” wrote an X user named Shivam.
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“Is it normal that an engineer, someone society often sees as highly skilled and intelligent, is now scared to take a loan because he is not sure he can repay it? What is happening? Is engineering still considered a top career?” a person questioned.
A number of people advised saving aggressively to offset layoff-driven money problems. “Forget taking loans, and start saving for 6 to 8 months. If possible move back to home town, and work from home to save rent. Key now is to skill up in problem solving, and making sure you understand how AI Agents + LLMs work,” an X user advised.