I think the layoffs we have seen is just the start of the recession. 2023 Is going to be hard, and it will affect severely on the entire economy, not just tech industry. We will see the news opening with the recession news, unemployment rates rising, some companies crushing, etc.. In the long run, everything will be fine, but in this recession I think the tech industry will change for good. It is important to note the tech industry is not just big tech. It is a huge amount of startups that helps inflate the salaries. Most of the tech industry operates on external money and not on revenues. It is not sustainable. The gap between non tech and tech is shrinking. Most tech companies use simple tech, web, apps, security and not some high barrier tech level, so it easy to compete, and non tech companies already doing it. We will see in the future much Lower evaluations for companies, much more focus on income and net revenue and less focus on the next investment round/IPO The tech industry works currently with disturbing similarities to pyramid scheme where early investors collect their return on investment from late investors. Your thoughts?
No one can predict OP. All these FAANG and other top tier companies weere hiring crazy right 6 months back. Just suddenly everything changed in one month, had they been right predicting growth, they would not had hired so crazy with such high TC. So just wait and see, irrespective of tech industry, smart people will always make money be it recession or tech bubble
I have heard the same thing during 2016 in APAC and yes a lot of startups got crashed and investors started to care about revenues. But Fed inflated its balance sheet so much since the 08 crisis...
Personally I think companies want to create a "need" to end remote work optional after covid withput much of the backlash. Best way to do that is create impression things are bad so employees want to come back running in hopes to secure work. I dont think the economy is bad just a lot of hype around a recession we are actually starting to create based on fear. Most managers/CEOs etc are using this hypw for justified firing to make it okay to fire with just cause, have people quit and maximizing the profit by cutting expenses and resources.
Inflation is real, high interest rates, slowdown in revenues is real But yes, they use this opportunity to go back to the office
I am hearing the term "recession" for 10 months now when the Russia-Ukraine war started. There is no doubt the economy is going down, but it is very much unlikely we will see a recession. Economy will be down but no recession. Very much likely the government is taking active steps to make sure we are not in recession, otherwise it will be weird. One thing we need to understand how the companies make money. With people hearing "recession" daily, they are likely to spend less, and this will have implication across all industries including tech. Tech will likely to have more impact now, as most of the companies have upgraded their tech infrastructure since coronavirus, and tech pays a lot to employees as well.
I'm always curious how people can spew such absolute bullshit and be so confident about it. https://www.bloomberg.com/news/articles/2022-12-20/economists-place-70-chance-for-us-recession-in-2023?leadSource=uverify%20wall
So you mean to say, government is aware the recession is coming and they are not doing anything about it? Also as I said, because of the stupid article you posted here in the chat and created a fear of recession, it's more likely to happen now Go and read articles what causes recession then come and comment, I will read
All of us work in tech, so we are overestimating how representative the tech layoffs are of the greater economy. It is bad in the rest of the economy, but for some reason it seems worse in tech right now. We aren’t the canary in the coal mine in this situation, we just happen to have one of the bigger sectors with a lot of VC money which dried up pretty quick.
Folks why are you panicking I don’t get it. You’re getting 4% risk free in markets. If I have a million, I get 40K for next 2 years. I have never seen such yields ever with lowest risk imaginable.
The reasons for the high salaries and forming startups have not changed and won’t at any time in the foreseeable future. It’s quite simple. There’s just not enough good developers to go around. Period. As far as startups. There will always be startups. A guy with 100 million wants to be the guy with 100 billion and the only way to do that is to invest in a startup. That’s the only point at which the rate of return will be sufficient during your lifetime to get you over that hump.
It’s the Great Reset. All private property and money will be confiscated and we’ll move to CBDC.
We s re
This has happened before and will happen again in the future. It’s all cycles, nothing is changed forever