I work as a software developer at Microsoft. SDE2 (62). Can big companies (FAANG + Microsoft) handle a recession without needing to layoff employees? Or would they try to keep their employees at a paycut? Or would they do what any profit oriented company would do?
Huge layoffs due to a recession is possible in any industry. Depends on the magnitude of the recession. Largest layoffs will hit the industry that bubbled. Tech is here to stay though so while they may get laid off, they will also probably have an easier time getting re-employed.
Recessions are usually followed by layoffs.
Depends on how badly they do. Even Lehman brothers folded overnight so it's possible, but unlikely
Take a look at the profit margins, annual revenue and annual operating costs and figure it out for yourself. With Microsoft's very high profit margins (as a percentage of revenue), layoffs seem unlikely even in the event of a 30% drop in its stock price and/or revenue.
Layoffs are done for shareholders, has little to do with profitability for profitable companies. Msft lays off heavily, they have never had to because of money.
You have no clue what you’re talking about. Company layoff because they can.
There is no such consideration anymore to keep people employed at a loss. It’s just labor capacity, utilization and productivity - numbers in the financial calculations. All while CEO’s enjoy severance bonuses in case they run the company to dirt.
Damn.. that's disheartening..
Dude, why not. We have a lot of deadload here. We could practically cut 30% of people and still be the same.
But will they layoff randomly or based on performance? I'm going to start soon, and just worried that I won't have enough time to prove my worth
As someone who worked through the last Great Recession, yes....layoffs will happen. Bigly. Microsoft shed 4K jobs. Security showed, a list of names was named and people had 1 hour to pack their things. Another list was read and those people had 30 days to find another role in the company or they’ll be fired. All big tech companies are much larger now, so a massive recession will have a bigger impact. Make sure you have some good savings built up.
Yeah. I'm on with Visa. so need to worry several times more.
Only thing you should know is any company can layoff anytime. Doesn’t have to be a financial situation - they can lay-off with org streamlining as a reason.
Exactly. Microsoft had a big layoff when Satya took over