Jan end is going to be another horrible period for tech! All companies will report their worst full year earnings in several years after the holiday period as consumers tighten spending the next 2 months. In order to stop their stocks from a free fall, they shall report atleast 5 to 10% layoffs on earnings day and try to convey that they are rethinking their growth strategy in 2023. Meta may continue to bleed money in Reality labs and not sure how they will apply lipstick to that pig and sugar coat it again in Jan. Amazon would certainly reduce workforce after holiday season in the retail/warehouse areas and also let go folks from loss making tech divisions like Alexa. Even Apple may see some reduced Iphone sales and layoff their apple store folks. Google may also finally get affected from drop in Ads. Twitter will continue layoffs and let go another 20% to rein in revenue reduction from advertiser drop. Several start ups will go belly up as investment dries up and they can’t IPO. Crypto and fintech companies suffer the most from the continuing impacts of FTX debacle and other issues. Semiconductor companies will bleed - Intel/Qualcomm/Broadcom. Vmware acquisition goes through and Broadcom lays off at least 20%. Tc 300k
The sectors hired a lot over the past couple years and cannot justify the head count and compensation of those hires.
Yep, era of weird high TC’s is hopefully coming to end. Which will force the cost of living to be rebalanced.
Why is your thought process that people need to be paid less but not people need to make more money?
Usually layoff is tied to SEC quarter filing and annual statement to shareholder. So it’s always Oct / Jan / Apr / Jul. Oct is more popular for layoff as it’s just before the holidays
Would agree with most of points. For semiconductors I’d agree with Intel and Broadcom though for different reasons. For Intel they will continue to shed people periodically since they’re never profitable though I don’t think it will be bad dramatic as software. And for Broadcom the software guys from VMware are gonna be hit the most but hardware probably won’t as much due to chip backlog. That though might rear it’s head 2024; we’ll see
Eep
Very few will be hurt in Bcom Hardware. My group is still trying to increase headcount
The layoffs will be sector depended.
Which sector would be the safest from layoffs?
Sector of people already laid off