We usually used to have layoffs when there was a bad economy. Currently, the economy is still doing great. It seems layoffs are in big tech to justify investments into acquisitions and AI, while smaller companies are just pinch saving following the big guys. We've never had layoffs used in this way. This is dangerous and could be a point of no return - because I repeat economy is doing just fine.
It’s a conspiracy to suppress labor price.
What evidence is there of a conspiracy?
Go try to borrow millions of dollars to fund your operations and then you might understand why companies are in emergency cash mode.
Is it because of high interest rate?
Big tech has enough cash reserves.
Unemployment is still low. There is no new era. Jobs are being redistributed.
Where is the distribution shifting? Non FAANGs?
There is no redistribution except increase in blue collar jobs
Yeah, this capitalism thing sux... what are you? 12? Seriously. Stop the whining. It has always been like this: your employer has zero loyalty towards its employees, and the reverse should also be true. If your skillsets can no longer provide the company the expected ROI, then your job status will no longer be secure. If you want job security, then work for the govt.
I want regulations and unions. Doctors have that. Engineers have that. Even actors have that.
Unions suppress wages and a good chance our work might be shipped to off shore.
People who entered the job market, particularly the tech job market, after 2016 or so have a distorted view of reality. I lived through the post dotcom implosion of 2001-2003 and the 2008-2010 GFC. It can get 1000 times worse than what we're seeing now.
There is no crises now as it was in 2001 and 2008.
exactly. that’s why we’re seeing belt tightening layoffs and not companies folding completely or slashing their numbers 50%+
Revenues are down across the board. Costs have to go down to maintain the profit targets, regardless of how much 'cash reserves' one has. This is not rocket science.
Just because economy is surviving, it doesn't mean it's doing good. There are many slippery slopes here. Geopolitics influence the future too. Do you think the investors won't be wary of the future possibilities of geopolitical pivots, that are very much possible and which can and will change the dynamics of US economy too?
Yes and big tech companies are making lots of money and stocks are rising. They’re laying off just because they can
Which is their responsibility to shareholders and something most large tech companies have ignored for the last 4+ years
How old are you? Have you worked through recessions previously?
Don’t think blind has a age restriction for mentally non grown ups
Agreed. Seems like people are getting laid off just to appease the investors in smaller startups