It should be obvious by now that these massive tech layoffs have nothing to do with the broader economy, which by all indications is doing fine. For many tech companies like Google they don't actually need the cost savings from layoffs relative to their outrageous profits and cash in the bank.
This is really about disciplining labor, specifically highly salaried tech labor. All of these companies use the same salary data and software and are therefore able to indirectly collude to suppress employee salaries. Firing large numbers of highly paid workers for no business reason is a semi-coordinated effort to reduce salaries across the board by flooding the labor market with talent. It has worked. If you look at offers for L5 today compared to 1-2 years ago median TC has come down by probably $50-100k. There also seems to be an increase in offshoring to markets where engineers are cheap(er) like Amsterdam and parts of South America.
The layoffs are the result of large tech companies becoming saturated with MBAs and mid-level executives. Tech has undergone a cultural shift away from technical innovation and rigor towards business expertise. These people are useless overcompensated garbage who are generally charismatic talkers but lack the creativity or technical expertise to innovate. Instead all these bug eyed psychopaths know how to do is hire and fire (that's all you learn at Wharton and GSB). They contribute nothing. They build nothing.
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This is really about disciplining labor, specifically highly salaried tech labor. All of these companies use the same salary data and software and are therefore able to indirectly collude to suppress employee salaries. Firing large numbers of highly paid workers for no business reason is a semi-coordinated effort to reduce salaries across the board by flooding the labor market with talent. It has worked. If you look at offers for L5 today compared to 1-2 years ago median TC has come down by probably $50-100k. There also seems to be an increase in offshoring to markets where engineers are cheap(er) like Amsterdam and parts of South America.
The layoffs are the result of large tech companies becoming saturated with MBAs and mid-level executives. Tech has undergone a cultural shift away from technical innovation and rigor towards business expertise. These people are useless overcompensated garbage who are generally charismatic talkers but lack the creativity or technical expertise to innovate. Instead all these bug eyed psychopaths know how to do is hire and fire (that's all you learn at Wharton and GSB). They contribute nothing. They build nothing.
source