Blog

Is a Recession Coming to Tech?

By: Thom Singer |
Published: November 4, 2025 |
Is a recession coming to tech? How will it impact Austin? The Austin Technology Council believes that community is not a slogan, but a risk management strategy
Every few weeks another headline warns that the economy will crater. Is a recession coming to tech? Some forecasts call for a soft landing, others predict a hard one. Meanwhile AI is igniting spending, retooling entire stacks, and opening new markets. Which storyline wins in the coming months is impossible to know. What we do know at the Austin Technology Council is simple. Austin’s tech community has weathered cycles before, and every bust has been followed by a boom. This is not optimism for its own sake. It is a pattern we have lived through together.

Strong companies and individuals prepare for good times and hard times at the same time. Scenario planning is not fear based, it is clarity based. Build a best case plan that accelerates investment in people, customers, and product. Build a conservative plan that protects cash, preserves culture, and focuses your team on the handful of moves that matter. Share the guardrails with your leadership group and the principles with your broader team so decision making stays consistent when news cycles fluctuate.

Keep building even if markets wobble. Momentum compounds when teams keep shipping, keep selling, and keep supporting customers. If there is a correction, do what you must to right size, then keep moving. Use the moment to improve funnels, shorten feedback loops, and strengthen your partner ecosystem. Downturns reward operational discipline. They also reward leaders who communicate with clarity. When people know what is happening and why, trust grows even in uncertainty.

In Austin, community is not a slogan. It is a risk management strategy. Companies that show up, contribute time and expertise, and help others solve problems build a network that pays off when things get bumpy. Community creates faster learning because peers share what is working. It improves talent outcomes because relationships surface trusted candidates. It increases resilience because you have people to call when you need a warm introduction, a sounding board, or a customer reference.

Put community on the operating plan. Participate in cross company roundtables, host a meetup, and encourage your team to attend. Strengthen the partner bench by identifying complementary companies you can co market with, co sell with, or co build with. Nurture the talent pipeline by building relationships with universities, bootcamps, and veteran programs now, so hiring and rehiring is faster later. Communicate with clarity by sharing scenario plans with managers, reinforcing values, and keeping listening sessions on the calendar. Measure connection by tracking how many meaningful external conversations your team is having each month. What gets measured improves.

Austin’s history points forward. Our region has bounced back stronger after every cycle because leaders kept the conversation going. Semiconductor to software to SaaS to AI, Austin’s advantage has always been a culture of collaboration. We compare notes, we make introductions, and we choose to build with others. That fabric matters when markets tighten, and it accelerates the next expansion when capital flows again.

At ATC we believe in the future of this community… and we need the community to believe in us. We convene leaders across stages and sectors to exchange playbooks, build trust, and work on shared challenges. Through peer forums, policy dialogue, and curated events, we connect operators who are building the future of Central Texas. If you want your company and your employees to be ready for whatever comes next, plug into the network that is committed to long term success in Austin.

Is a recession coming to tech? History shows that the answer eventually will be “yes”.  But this is why we need strong community.

A practical question for companies. How are you supporting the community and investing in the long term of Austin? If you cannot answer this question and the economy drops, you cannot expect people to rally around your business.

A personal question for individuals. Who in your network will have your back if a layoff hits. Make a short list, reach out, and strengthen those relationships now. Connection is the safety net, and in Austin we build that net together.

Categories

Don’t Miss ATC News

  • This field is for validation purposes and should be left unchanged.
Austin Technology Council
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.