I have witnessed it myself and have heard from many people in different companies now (FAANG) that they are hiring more than the need is. There are already enough people and not much work. Executives are smart people and if we are noticing it they know it very well. What can be the reason of this hiring spree. Does it help stock prices? Maybe stock-algos take into account number of new hires as a measure of futute growth?
Self interested managers who get raises from having more reports, and promos from becoming managers of managers. Empire building and make work is everywhere
What a beautiful and concise way to phrase it. this comment is like the Newtonian physics of corporations.
Better to have too much than not enough. If they can afford it, then why not? If shit hits the fan, they can lay them off and shareholders will be satisfied.
Yeah once these companies stop growing it’s layoffs time.
Yeah always better to overspend and not have as much profit huh? 😑
Effects of corporate tax cut rate?
Corporate tax cut only led to more stock buybacks. The hiring didn't increase from that.
Interesting
There are lots of hiring but there are also lots of quitting.
Great question. This was true of Microsoft as well. There were pockets of Microsoft where people were working on projects for years that nobody was actually using. It would be interesting to calculate ROI on people. The tough part is some people are very valuable but they’re working on things that have no value. In the end you lose them anyway from boredom.
Managers like to grow their teams more than necessary, managing bigger teams helps them get promoted. It’s not tech specific. And since FAANG have ridiculously low headcount to revenue ratio it’s not such a big concern. Talent is their only cost, its not like they have factories to run and machines to maintain
It's all about acquiring talent. Sometimes I buy a second pair of pants I really like - not because I need them right now... But I want to know they are there for the future.
This. Except talents are not like shoes. Most of the time it’s you hire the talents so that your competitors won’t have them. I don’t know why not so many people get this
💯. These FANG companies are some of the largest and most profitable entities in human history. Competition is fierce. With billions in liquid capital they can afford to soak up talent just to remove it from the market. This isn't some engineering problem - this is business.
We are setting ourselves up for Infinity War
Gold comment +1
Who snaps the fingers? My money is on Bezos.
Classic late market cycle activity. As soon as the economy sputters, they'll cull the herd. Think long and hard about that before you decide you leverage yourself up to the eyeballs for a $1M crap shack.
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