Stock Market Crash
Realistically, at some point in the future, we will go into a recession. A lot of the tech companies stocks will fall. When this happens, will current employee salaries also fall, or will only new hires interviewing get less competitive offers? Will stock refreshers be reduced drastically as well? I’m a new grad, so I’m sorry if I sound stupid. Furthermore, for any people there during 2008, we’re Google/ Microsoft and the other tech companies firing a lot of devs? Or were they just hiring a lot less?
It really depends on how bad the stock crash is. E.g. 2000 and 2008 were really bad, it wiped out certain businesses and created surplus labor for certain industries. People lost hight paying jobs and took up jobs they normally wpuldnt. The companies generally dont reduce comps, they just layoff excess strength and can do some restructuring on bonus. But don't be too worried yet, the consumer ecomomy is still strong. Always have enough money in bank to survive for a year or two without job.
Good question. Intel peaked at $75 in 2002. A bunch of talent left and the company struggles to this day.
What does that mean?
I'd say the partnercentric model is actually an advantage during a recession: contracts are stickier. There's a reason MSFT can get away with not always having the best product in the segment.
Facebook lost 25% if its values, after a major scandal — and because of hard limits like “world population”. I don’t think there was any layoffs, just a ton *more* people joining Security. All these companies are growing as fast as the recruiters can make it, so I doubt the slowdown will mean more massive layoffs. They already can get away with easy fixes, like raising the bar a little (which they do for other reasons, like fixing low morale because newcomers are too weak) and having most of your compensation market-driven. That last one does mean stock tanking makes a lot of people a lot poorer. No one will go hungry, but still.
In 2008 companies cut all svp through director, increaded sr. Responsibility and hired more or equal talent less expensive because people were deaperate.
From what I’ve heard from other devs I’ve worked with, the big “L” word is definitely exercised during recession times. That can also be accompanied with some hiring freezes, etc., but companies, to a certain extent, will still always be looking for fresh talent. As a side-note: if you’re a young’n or new to the company, I’ve heard generally you’re prioritized to not be one of those laid off (unless in certain circumstances). I think the thought is that they just got you here and spent all this money acquiring you and they still want to evaluate you before making such a big decision against you.
I saw the opposite for young and new employees in the 2007-8 recession. They immediately laid off the least experienced people and kept those core to business.
The sooner you are closer to the core business, the merrier you are.