The markets are savage, Spotify trading at 8% higher after laying off 17% workforce
Tech is slowly realizing that Elon was right and a huge amount of overhead is not necessary to grow these companies when you actually manage teams properly.
The long picture is even more scary. Tech companies have realised they don't need as many people once the product is up and running and there are no repercussions for laying off people once you have gotten what you wanted.You can fire anyone at anytime. And for startups it would be even more brutal, they will repeatedly reduce workforce once they are stable to cut cost and increase the runway.
Your tech overlords will make the MBB restructure guys look like bloody saints.
But if you think about it, the startup space is going to heat up like anything. With multiple horses running with very little employees.
And it will again lead to consolidation. Nobody wants to pay for like 50 different SaaS services.
But yea small tech firms with 5-10 employees will thrive.
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Jordon Carmden
Stealth
a year ago
Well one can talk about HR folks having empathy but markets dont work on that. Can hope tech markets stabilise by 2024
Good. If the markets didn't do well enough, they'd be laying off even more people.
Umm…Elon was right? Too early to say that, especially when we keep hearing big advertisers moving away from X.
Secondly, big tech hiring is back with big bang. So all those layoffs were just optics for investors. In facts, the roadmap of 2023 were ruined because of all those tricks.
Right on point. Most tech companies are bloated, but this trend won't last for eternity.
No, they can't be bloated forever due to market forces and competition.
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