Been hearing layoffs again and there are less hiring what's the actual reason for this and when this become normal

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Why layoffs ? What's happening with it sector ?

Software Engineer

Why layoffs ? What's happening with it sector ?- Grapevine

What's your thought on whether the job market is on a trend towards normalizing versus previous quarters? When do you think market will be back to normal?

Job market normalizing?

Medical Expert

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?

What are the causes of layoffs?

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 happening. Is it because of the over hiring or because of the poor performance of the employees.

Please share your experience in your company too.

PS: Please upvote to get more reach.

Why still layoffs in MAANG?

Welcome to IT Company Discussion's Private Community

I am really curious why there are so many layoffs in the IT industry. Wherever you see, big companies like CISCO are laying off so many employees. Experts on Grapevine, please explain what is going on.

Why are there so many layoffs?

Being an investor in equity markets, i was aware of the fact that US market will crash as the free money by fed draws back. I obviously was not able to link this up with the funding dry-ness.

I still expect a founder to be aware of these economic events. I am curious how could the management decide to go for hiring employees only to lay them off a year later. 

If you are a founder, would be happy to know the other side of the story.

What triggered layoffs ?

Let me explain in detail. 
 There are two parts to it and can be broken down basis PnL 
 1. Revenues : Sudden jump in tech( social media, e-commerce, ad tech, fintech, etc) plus supporting industries (chipmakers, laptop / device manufacturer) and the general economy with QE money  
 This impacted forecasts as most firms forecast AOPs basis historically trend (which clearly was an abberation) - this lead to higher HC estimates and rampant and quick hiring  
 Variable costs: CAC, customer support, sales incentive all spiked up as 1. Everyone was putting money (inc bidding price for key words) and 2. Huge customer inflow due to covid (edtech, e-commerce) that required support  
 Fixed costs: While office space / rents remained steady or dropped as % of revenue. This was offseted by fixed tech (software, hardware, people) costs and other costs like (legal, HR, Business, Marketing, supply chain, etc.) the talent was expensive to source plus their need was instant as you already had customer to be served  
 All of this lead to rampant hiring, inflated CTC, rosy forecasts, etc.  
 everyone had turned a blind eye to inflation implications (as for the past 30 Y no one saw a shooting inflation - hence the key decisions makers had now experience & idea about it) - till Dec’21 even FED said inflation is transatory. 
 It was the Ukraine invasion that opened people eyes. Oil went up, food prices went up, UK Europe saw an energy crisis etc 
 This made all the rosy forecast mentioned above duller as 1. Demand was expected to reduce due to higher cost of living 2. Capital became scarce as funding drired 3. Cost of capital (WACC) became expensive as hurdle rate climbed (which is rate of return for bond)  
 Management and investor panicked as they have limited partners (LP) to answer and quess who are these (big pension funds) so people’s pension money had come into startups which were not showing signs of exit for investors. 
 All in all - it is a pain we all have to bare for being exuberant in 2021-2022:

Growth Manager

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As everyone knows that zomato is now hiring 800 employees after two months of a mass layoff, and exit of senior profiles like VP and CTO.

Let me tell you the truth about the founder. He is an opportunist. He doesn't give a shit about the culture or any employee. The company is built on the death of many riders and cheating with low-wage workers.

Timing- Isn't it a bit weird that a company that did a mass layoff two months back is now hiring? Seeing that many employees got laid off from the top-tier company. It is a great time to employ smart folks as the hiring competition in the market is at its lowest. Or the mass layoff that happened previously was planned with the thought of hiring again next year with very little competition and desperate candidates. 

Layoff: In zomato, it's hire and fire culture. I have seen many of my friends leave even after performing well. Honestly, sometimes I don't even feel human. It's expected from employees to start their day early and go late at night. If you want to leave early (around 6 or 7), you should have a solid reason for doing that. Here code release happens late at night due to less traffic. So it's expected of you to be available all the time.

Incompetent Managers- I have worked with two managers here. Both know the existing system as they were once an IC building that system. The issue with these people is that they grew up the ladder because they were the only ones left behind in the team. They lack real-world system knowledge. I have previously worked at amazon, and I know the team lead level there. But here it's like jo ruk gaya vo raja hai. It's hard to work with these people as they lack proper estimations of the projects and at the end of the day. The ICs have to face the wrath of the product teams.

People who are planning to join the company. Please do join, as working 24/7 you would learn a lot in a very short period of time. Also, the culture is team dependent, so you might get a team with chill environment.

Reality check at Zomato

Founder

I am seeing a lot of layoff related posts everywhere from news articles to LinkedIn.. Is the Job market really that bad now? Or just the media is projecting that way? 

If it's really bad, which department you think is the most affected? How's layoffs specifically in India? Or is it layoffs in US but more hiring in India due to cost cutting? 

Are layoffs in technology/engineering dept as in for developers or some other departments? Your thoughts please..

Job Market right now in India?

It is really bad right now 
 1. Layoffs in many of the companies, irrespective of whether they're a startup or a big MnC. 
 2. Almost everyone I know of wants to switch, because of no/less appraisals from last 2 years 
 3. Bad work life balance - people thinks switching might help 
 4. Too much competition for any open position. Because of too much supply, companies are low-balling and people would accept the offer.  
  
 Recruiters ghosting is too common. Even if you've killed in your interviews and recruiters get someone who's ready to join on less pay, they'll simply ghost you.

Software Developer

So many companies are doing layoffs. It's becoming so common that now a days people have even got used to it. Folks in or know about US/UK/Canada, how's the situation over there? Is this shit show becoming common there too?

Hearing a lot of Layoffs lately

Source is someone from Cisco. Can anyone else validate or reject this leak/rumour?

Cisco to lay off 8-10k next week?

Investor

We've witnessed so many layoffs in the past year and this continues to be an upward trend. Bangalore is a city of IT professionals and these layoffs seem to have no effect on the real estate. 
Is this because the numbers are negligent? I don't think that's the case, my company has been laying off people since last year. It was never public. I'm sure there are lots of such companies. 
What are your thoughts?!

How is there no correlation to layoffs and Real Estate?

There is a lag effect, give it a few months and you will see rents and prices not increasing anymore

I believe the supply is more than demand for the talent pool nowadays. So, is cost cutting is the only reason or roles are getting redundant too? I am looking for good insights across sectors and roles to understand the overall situation.

Which all companies are laying off?

Business Analyst

Had this thought since long back, but there's one common pattern I have witnessed. 
Since the Twitter layoffs, all the companies out there (including FAANG/MAANG) have joined with the layoffs trend. What's surprising is that most of these companies have had a great financial year and made profits in billions. 
Recession is a time when markets go down and companies can't retain their customers due to economic or socio-political issues. 
So the current situation has made me question whether the layoffs are actually due to this fancy term called 'Recession', which most of the tech influencers out there are preaching and selling thier courses with (shame on them for doing so during these times) or is it actually the VC's control over the companies which is making the CEO's take such decisions?
All things aside, My heart goes out with people who have been impacted by layoffs. Don't forget that there is a thin line between being laid off and being fired, so don't lose your confidence and look out for new opportunities and sell yourself in the market.
Never forget, no matter how the market conditions are, if you are skilled and good at what you do jobs will always find you.

Stay Positive and be strong!

Are layoffs due to recession?

is it only going to get worse in the upcoming months?

Highest number of layoffs since Mar-2023

most of loud layoff are recorded here. trend seems to be going down.

Here you’ll find a complete list of all the known layoffs in tech, from Big Tech to startups, broken down by month throughout 2023.

A comprehensive list of 2023 tech layoffs | TechCrunch

layoff stats

Lawyer

Last night many people got notified; 10th June is the LWD in India ! Did you got impacted? 

This layoff is presented what happened 2.5 months back in MTV!

Layoff hitting Google BLR/HYD/PUN/GGN

Engineering Manager

Week back there were posts by linkedin engineers that linkedin is hiring SDEs and anyone can as referral and today they laid off 700 people.

Like whats happening man!!! Is the company dumb or what?

LinkedIn Layoffs India

(1) Reduce cost of human capital -> (2) Post better EBITDA numbers in earnings calls -> (3) Get big bonuses and sell your equity if its value is rising -> (4) Hire a lot of people again so that you can repeat this cycle again to profit

All of our fears about AI was correct! 

They will take our jobs, they will overtake the world & will finally turn against us. 

https://www.peoplematters.in/news/talent-management/ibm-asks-employees-to-volunteer-for-layoffs-targets-80-cuts-in-key-departments-including-hr-40430 IBM asks employees to volunteer for layoffs, targets 80% cuts in key departments, including HR

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