Job cuts across the broader technology world could provide telecom operators with a chance to bolster their internal digitization efforts, though that will require a significant operational re-think for carriers.

A recent report from Analysys Mason noted operators have a “unique opportunity” to bolster their skilled workforce, which could help them in their efforts to further infiltrate the technology ecosystem and revenue stream. The firm cited efforts by operators in using cloud computing to improve the “customer experience, increase revenue, and develop business agility.”

Those operators had been competing with more forward-leaning cloud-based firms for skilled workers. Analysys Mason Research Analyst Stephen Burton in the report noted past comments from telecom executives citing a tight labor market for software engineers.

“Operators are aware of the problem, but the skill shortage in [telecom] has remained difficult to address effectively,” Burton wrote.

That trend could be changing as the cloud ecosystem has started culling its workforce.

Amazon just this week announced plans to cut 9,000 positions across its Amazon Web Services (AWS), People Experience and Technology Solutions (PXT), Advertising, and Twitch divisions. This followed Amazon in January announcing plans to slash 18,000 jobs.

The world’s largest cloud provider is not the only firm trimming its workforce. IBM, SAP, Microsoft, Google, and others have all announced plans to eliminate highly-skilled employees.

Burton noted that operators can gain valuable experience by targeting these tech workers to support oft-touted digital transformation efforts. He noted operators can offer these workers a solid base from which to work with clear development strategies and tout the stable nature of the telecom space.

“As workers with technical and software skills are in such high demand within telecom, recently laid-off staff can be assured of a more permanent role within the industry,” Burton wrote. “Telecom operators cannot directly compete with tech companies over wages but can offer job security and long-term career options during the economic downturn of 2023.”

Patrick Wu, a senior insights analyst at tech hiring platform Karat, recently told SDxCentral that the telecom industry has historically been less competitive in landing top engineering talent, with only 18% of candidates coming from telecom being placed in the top quartile of global coding scores. He added that this statistic was on par with several industries outside of tech like retail and financial services.

Yet, “one encouraging trend for these industries is that we’re seeing preferences change with engineers over the past few months,” Wu added.

Operators will also have to decide on their own workforce direction as many have themselves initiated job cuts in order to trim costs.

AT&T CFO Jeff McElfresh recently told an investor conference that the operator was looking to cut costs through further operational efficiencies that will allow it to cut headcount. McElfresh noted that AT&T had cut 30,000 positions over the past two years, including 7,000 job cuts during the final quarter of last year.

“And no headlines, no service disruptions. Performance, the key operating metrics look really great in the fourth quarter, the trends look fantastic, and you should expect us to continue to find ways to get more efficient because I’m here to tell you we are not best in class when it comes to cost structure. We still have room to improve and that’s why it’s really my main charter in the company,” McElfresh said.

An AT&T spokesperson later explained that some of those 30,000 positions were from divestitures, though the carrier couldn’t provide details. According to the carrier’s Securities and Exchange Commission (SEC) filings, it has reduced its headcount by approximately 67,000 employees over the past two year, ending 2022 with just under 163,000 employees.

Telecom operators could also face competition from those companies currently cutting jobs that are actively looking to hire tech workers in other fields. McKinsey recently noted that less than 50% of quantum computing jobs are predicted to be filled by 2025.

“The consensus is that we know there’s going to be a huge shortage on the order of thousands of workers missing from the field in the next five to seven years until 2030,” Olivia Lanes, North American lead of Qiskit research and education at IBM, told SDxCentral. “And the thing that I want to emphasize is that we need players across all parts of the stack in the business.”

Analysys Mason’s Burton did note that operators should act aggressively if they want to move on this digital transformation opportunity, noting other industries are interested in similar actions.

“With the tech market expected to rebound in 2023, telcos must recognize the high level of competition and small window of opportunity that exists to attract and secure these necessary workers, or risk missing out on a unique opportunity to accelerate their digital transformations,” Burton wrote.