The tech giants have fallen. Usually the mid sized and small sized companies follow suit in the following months. Having lived through 2 tech recessions this is what I expect to happen: 1. Very few tech companies are going to hire for the next 6-12 months. It will be 10 times more competitive compared to a year ago. 2. A lot of startups in the bay area and Seattle are over leveraged and with interest rates rising, won't be able to make payroll. Many are unprofitable. Layoffs in this sector will follow. Many will close shop unfortunately. 3. Many techies joined startups with low base salaries and tons of stock options that will become worthless. A friend of mind (VP) at a startup accepted a $240K base salary in the bay area with 100,000 in options that became worthless when the company wound down. There are 1000s of employees who are in a similar boat- ie took a pay cut on the base salary in exchange of substantial stock options. 4. The public markets are dry and with interest rates so high, it is close to impossible to raise money at attractive interest rates currently. The venture capitalists are also running away because their portfolios are down 30/40/50% yoy. 5. For companies that are stable and with employee needs, there will be a natural "wait and see' period for the next 6 months. As a comparison, we are in the mid 2008 phase of the great recession, ie at least 3-4 more quarters of pain is ahead. For those with severance, this is the best time to refresh, travel, spend time on what you like. No more looking at Slack messages from your bed before going to sleep and right after waking up, and in the bathroom and while having lunch. No more meeting notifications and dealing with arse holes and toxic people. No managers. No politics. No schedules created by other people. ENJOY this phase! This is a welcome blessing. For those without a severance or savings, it is highly recommended finding alternative income streams until you land the next role. For most people, the next job won't be secured for several months (3-12 months). It will get UGLY when the layoffs trickle down to privately held companies that have been pinching their balance sheets. Cut expenses where you can. Your future self will thank you. As Jeff Bezos said "Batten down the hatches" All in all, it will be mid to late 2024 before any normalcy in tech labor markets. Do not expect conditions like 2018-2021 for another 4 years at least. The economy was over extended because of low interest rates. I wish each and everyone of you well and remind you that if you are not living and experiencing what life offers, you are wasting the human experience that the universe has created. We are not here on this planet to be a modern slave of someone else who controls our calendars and who's whims decide when and how often we can go on vacation. Money is not everything. Life is.
I approve this message!
So I guess I should stay on j&j peanut salary then?
Dude we are fortunate to be in a recession proof kind company like JnJ... Stay low till season changes
Bruh I can barely afford my studio apartment rent 😭
This may be off topic but I always wondered. How does interest rate affect startup funding? Funding usually comes as VC investment (and not loans.) And VCs invest their funds money, again not loaned money So at what point in this process does interest rate come in? (note only talking about funding. no roundabout effect about reduced consumer spending and then revenue goes down or something)
If you have cash. And you can get 0% yield on it. Your slightly more likely to chase yield with startups or equity than if you were getting 4% on it risk free in say bonds There's a 4% yield difference now over the previous situation. In the 70s some bonds were close to 20%. Money chases yield
Meaning VC funds are gonna buy bonds instead of equity? == no raising for the startups companies
Don't forget LC. 1+ per day to be better prepared.
LC is done. its ChatGPT era now.
Hahaha. Not done.
Amen!
Sorry it happened to you or congrats! well done
2023 & 2024 graduates ☠️ dead!! (Unfortunately i will be one of them🥲)
There's always consulting
I see a long list of companies hiring every day, am I missing something?
Dawg go ahead and apply and see what happens Been ghosted for a month straight even with a rescinded FAANG offer
Its difficult to get hired. I have had 1 role where I cleared the final round, but the position was cancelled, one role where position was cancelled before the final interview, another role where 2 hours before tech interview I was notified that position was on hold. In one FAANG, I am waiting for the budget review (end of jan)
Great post❤️
How do you find the time to write this wall of text
Because OP is clear at what they want and is not part of the rat race anymore!
Doomerism has rotten their brain like a drug.