Just an open ended question on why are layoffs happening on such a scale. I personally feel the skill to salary ratio has fucked up so much lately that the companies are having to fire people who are essentially useless to them. More of liabilities than just assets! What do you think?
Absolutely agreed. Hiring in hordes because money was easily available earlier and founders/companies thought that they will be able to build more and hence get more value / valuation sooner was the core reason why the skill to salary ratio got f’ed up. And it’s good that it’s being reset now.
Coming to who to blame for layoffs - no one. It’s pure capitalism - there was money, hence there were jobs. For whatever time people got paid a lot more than they deserved - they should be rather thankful. If they built their life around the assumption that this much money was the new normal, it was their naïveté. Companies got to survive, and they have to do whatever has to be done… as long as it’s ethical. Firing is fine. Not paying salaries / dues is not.
Yes completely agree. As far as my mind goes or whatever I’ve read, in the tech industry at least, firing has always been there for a very long time but job switching or lateral hiring is somewhat of a modern thing. Talent poaching became a thing, which again I think is fine, but overvaluing something became a new norm and that’s where things going south.
Hopefully industry stabilises sooner rather than later.
How do you measure the skill to salary ratio? And who gets to decide the ratio is high
Microsoft’s revenue per employee close to 1M while they pay 50-100k for even top talent. If anything we are underpaid lol
Layoffs in big tech are unnecessary. Instead of spending valuable time and money on lay offs to save 10-15% cost they could have easily just increased their revenue by that amount
It's not that easy to increase the revenue because of the general slowdown. Big tech wouldn't be able to charge the same amount they used to charge their clients.
It’s just plain naive to say this. “Just easily increased revenue”… that doesn’t happen so easily even in good times, forget when the global economy is unpredictable and in shambles.
Founders at mistake. They said they are doing layoff to do the cost cutting but at the same time they will draw salaries in Cr
So? You become a founder ceo and draw salary of 1cr. See if it is deserving or not then
It doesn’t matter if deserving or not but its simple that if you can lower your salaries in tough time and retain few employees then you need to do. You dont need to be in swiggy to know this basic (though some people in swiggy doesn’t have that basic sense)
You guys are the Fools Of Randomness.
You think you got jobs because you had skills? Wrong. You got jobs because the US government distributed free money for the last 10 years and that money flew into other countries from the US. That was the funding your useless startup got.
Now, the money is not free anymore. The money which flew to other countries is going back to the US.
Don't get ahead of yourselves. We are at the mercy of the US Feds.
Satya vachan
Demand and Supply.
We witnessed unexpected demand post-pandemic. Everyone hoped for a downturn but besides the first few months of 2000, there was none. Just look at NIFTY from March 2000.
Recall that silicon chip manufacturers had delayed the chip orders anticipating fall in public spending post pandemic. They were surprised like everyone and caught off-gaurd. Petrol crossed Rs. 100 in India but no one cried out.
Maybe, we just realized the futility of saving money with such a close encounter with death during the pandemic and went out guns blazing with discretionary spending.
Seeing the boom, investors opened up their coffers. There was money to be made in this boom. Companies were flush with money and they did not know what to do with it. So they started pumping money into just about any and every idea.
But they needed resources. Demand went up sharply. Supply is inelastic in short term. So prices (salaries) went up. The same talent pool, but everyone gets paid more. In the longer term we saw supply go up with more people upskilling and entering the talent pool. The course peddlers made a killing.
With the success in finding vaccines, rapid vaccination and subsequent herd immunity we overcame the pandemic. The uncertainty was over. Discretionary spending was reigned in and demand fell.
At the same time we witnessed the Ukraine-Russia war at the start of 2022. With sanctions on Russia, the energy supply throughout the world was affected. US and EU had to source their demand from elsewhere and this additional demand led to a worldwide increase in energy prices. Energy inflation slowly percolated through the economy affecting everything else. Food prices increased by 10% in US from Dec'21 to Dec'22. This further reduced discretionary spending and reduced demand.
We saw interest rate actions by Fed in 2022 hoping to reign in the inflation. Debt was expensive again. Funding dried up.
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Wrong decision making, companies have been hiring in HOPE of increase in business and not the requirement. And it is nothing against your skills, it's all office politics and your gender. 👍
You can only blame yourself.
Writing CRUD apps is not going to take humanity to another level. But founders and employees think they do. In 2000s call center employees thought so... In 2007s it was real estate agents and builders...
Don't believe me? Scroll up and find out how many think they are entitled!!
Guys, i am in final year B.Tech, currently preparing for placements.
My Parents advice is to prepare for Govt Jobs. They are fearing about the layoffs, but my aim is to get job in anyone of the MAANG.
I just want to know why layoffs h...
What causes so many large companies to lay off their employees, even when they have enough work for the employees? Why do companies want to have fewer people working for them? Can any expert provide their opinion?
I have been through ups and downs in IT, but these layoffs seem crazy. There is just no pattern to it, more like everyone is firing let me fire.
Honestly I feel its high time Tech companies, Startups take a hard look at their business...
Just a random thought.. please shed some light!!
Why would a demoralised employee work? Better to have none than have some.
You can upset 10 employees by letting them go or upset 100 by pay cuts.
