The Impact of Tech Consolidation on Recruitment in 2025

Mergers, acquisitions, and widespread layoffs are reshaping the tech industry. For employers, this means more candidates on the market in some areas, but slower decision-making and higher risk in others. For candidates, it has created a more cautious, selective mindset.

The result is a hiring landscape that feels uncertain and uneven. A surge in applications does not always make recruitment faster. In-demand talent, especially in areas such as cloud engineering and data analytics, is still highly competitive. Meanwhile, oversupply in functions like QA or product is making it harder to identify the right fit.

This blog explores:

• What consolidation looks like in today’s tech market
• How candidate behaviour has shifted since 2024
• What this means for employers hiring now
• Practical ways to adapt your recruitment strategy
• How McGregor Boyall supports clients through change

Hiring through consolidation requires clarity, speed, and the right recruitment partner. The businesses that adapt now will be the ones that secure the best talent while competitors hesitate.

Defining Consolidation: What’s Happening in Tech?

Tech industry consolidation might be a boardroom strategy, but it’s impacting operations, teams, and the jobs market on a daily basis. Over 62,000 jobs were cut across tech firms in the first five months of 2025, and more than 100,000 by July, including heavy reductions at Intel, Microsoft, and Meta.

Meanwhile, M&A activity is surging. U.S. tech deal volume rose 8%, with values up 41% year-on-year, averaging over $82m per deal. However, it's not confined to headline-grabbing mergers; it also includes:

• Strategic acquisitions of niche product teams by enterprise platforms
• Widespread shutdowns of unprofitable or VC-dependent startups
• Mass redundancies in engineering, product, QA, and operations
• Internal restructures driven by cost-saving and integration priorities

These events are forcing companies to reassess team structures, workflows, and hiring strategies. Following a merger or acquisition, recruitment often pauses while leadership teams align on budgets, roles, and new strategic goals. Meanwhile, businesses undergoing rebranding or system integrations may delay external hiring entirely.

Even high-performing firms are adjusting their approach. In financial services and pharmaceuticals, for example, tech-enabled innovation remains critical but headcount approval cycles have lengthened, and hiring timelines are extending.

Retail and energy companies face similar pressures, especially those accelerating digital transformation. For them, consolidating internal tools and reorganising teams post-acquisition has led to temporary slowdowns in tech recruitment.

Overall, consolidation introduces ambiguity. And ambiguity often delays hiring. Understanding these pressures is essential for building realistic recruitment timelines and identifying where contract recruitment can bridge delivery gaps.

Candidate Confidence is Shifting

The assumption that a surplus of candidates means easy hiring doesn’t hold true in 2025. Tech professionals are approaching the job market with caution, and employers must work harder to gain their trust.

• Risk-aversion is on the rise. Candidates are prioritising job security and stability over bold career moves. Larger organisations, especially in financial services and the public sector, are attracting talent previously drawn to startups.
• Candidate activity is lower. Many skilled professionals are choosing to wait out the uncertainty rather than actively apply. Others are exploring freelance or contract tech jobs as a lower-risk alternative.
• Market saturation is real. Functions like QA, support engineering, and non-core product roles have seen a surge in applications post-layoffs, intensifying competition and increasing selectivity among candidates.
• Expectations are evolving. Candidates want clarity on flexibility, development pathways, and compensation transparency before engaging in lengthy processes.
• Reputation matters more than ever. Tech professionals are scrutinising how companies treated staff during consolidation, with Glassdoor reviews, peer feedback, and LinkedIn activity all influencing decisions.

These behaviours are changing how organisations approach talent acquisition across all sectors. In FMCG and retail, companies that offer hybrid working and a clear employer value proposition are winning over experienced tech talent. Meanwhile, in pharma and energy, where some roles still require on-site delivery, EVP clarity and process efficiency are proving essential.

What This Means for Employers

Is your hiring process moving at the speed candidates expect?

The current market presents a contradiction with more candidates available, yet recruitment outcomes feeling slower and less predictable. For employers, this means adapting expectations and refining processes to keep up.

• Volume doesn’t equal ease. While applications may spike, relevance and readiness vary significantly. Sorting through high volumes of misaligned applicants can delay decision-making and overwhelm internal teams.

• Process quality is a differentiator. Candidates are prioritising speed, clarity, and communication. Long, drawn-out processes or inconsistent messaging can lead to disengagement and dropouts.

• A strong EVP is a must have. According to Gartner, a strong EVP can lower your turnover by 69% and help retain high-performing employees. The best candidates won’t engage unless they understand what makes your organisation stand out. Flexibility, purpose, and growth need to be clear from the outset.

• Slow offers = missed opportunities. In-demand candidates, especially in areas like cloud engineering or data analytics, continue to receive multiple approaches. Delays in interviews or approvals lead to lost talent.

• One-size-fits-all doesn’t work. The needs of a software engineer in pharma differ from those of a DevOps contractor in the energy sector. Tailored messaging and role-specific approaches are essential.

In short, effective tech recruitment now requires a blend of speed, structure, and empathy. Businesses that streamline their recruitment services, shorten feedback cycles, and prioritise transparency are more likely to secure high-value hires.

Four Ways to Adapt Your Hiring Strategy

Which part of your process would most benefit from a reset right now?

In a market shaped by uncertainty, incremental improvements can make a significant difference. These four tactics will help you optimise your recruitment process and attract top tech talent:

1. Prioritise clarity at every stage

Unclear job specs and vague growth opportunities are now deal-breakers. Candidates need to know:

• What the job really entails
• Who they’ll report to and collaborate with
• What the progression path looks like
• How flexible and transparent the package is

Spend time refining your job briefs and ensuring alignment across stakeholders. Avoid generic descriptions and be more specific about tech stacks, team dynamics, and delivery goals.

2. Streamline the interview process

Caution is natural, but lengthy interview processes are counterproductive. Top candidates, especially those considering multiple offers, won’t wait six weeks for a decision.

Try to:

• Limit interviews to essential steps
• Use structured scorecards for consistency
• Provide timely feedback and maintain candidate engagement throughout

Speed signals decisiveness. Clarity builds trust. Together, they increase your chances of securing high-quality hires.

3. Promote your EVP proactively

Your Employer Value Proposition (EVP) is your brand's recruitment engine. Make sure you’re actively communicating what sets you apart, particularly if you’re in a sector still under scrutiny post-layoffs.

Include messaging around:

• Learning and development
• Work-life balance
• DE&I commitments
• Purpose-driven projects

Use your careers site, job ads, and candidate conversations to showcase this. Our Recruitment Services team can help craft EVP messaging that resonates.

4. Use contract talent to move faster

Permanent headcount freezes don’t mean recruitment has to stop. Contract recruitment gives you:

• Rapid access to skilled professionals
• Budget flexibility
• Delivery continuity for high-priority projects

Roles in Cloud, DevOps & Infrastructure, Development & Testing, and Data Analytics can often be filled more quickly on an interim basis. Leverage our Contractor Hub to find, onboard, and support contract tech talent quickly and compliantly.

How McGregor Boyall Can Help You

McGregor Boyall has been partnering with organisations through market cycles for over three decades. Our experience handling disruption makes us uniquely positioned to support your hiring needs during consolidation.

We provide:

• Specialist recruiters across all major tech disciplines, from Compliance & Governance to cloud, security, data, and software development
• Contract and permanent tech recruitment services tailored to your operational pressures and timelines
• Sector-specific support across financial services, energy, pharma, retail, FMCG, public sector, and more

We also offer real-time insight into market movements, helping clients benchmark roles, refine EVP messaging, and futureproof their talent acquisition strategies.

Whether you need to build new teams post-restructure or maintain delivery during a hiring freeze, we can help you manage uncertainty with confidence.

Hiring Through the Reset

While consolidation may feel like a setback, it also creates opportunity. Teams are being reshaped, budgets reallocated, and priorities redefined. In this context, recruitment becomes not just about filling roles but positioning your organisation for growth.

With candidates more cautious and competition heating up, businesses that refine their approach today will be best placed to lead tomorrow.

Now is the time to assess and benchmark your hiring processes against the leading tech recruitment and talent acquisition strategies.

Talk to Us Before Your Competitors Do

Consolidation may be reshaping the tech landscape, but the right recruitment partner can turn disruption into momentum.

Whether you're facing an urgent gap, planning for future growth, or want a clearer view of the market, our expert teams are here to help.

Contact us today and take the first step towards smarter, faster, more resilient hiring.