Layoffs were a total failure at changing anything
I don’t understand what the point really was - companies with a bad product are still struggling - companies with a good product are still growing - rent in Bangalore, Mumbai is still sky high - salaries are still high, people are still asking for more - food is expensive as ever - stock prices of companies that fired people never really went up Someone make any sense or any of this?
I could be wrong but I think layoffs were a knee jerk move by most companies without much thought pur into it.
Let’s admit it, most CEOs are first timers and are learning as they go. For most of them this was the first recession.
They saw their peers take certain decisions.
They read about what happened in the previous recession.
They asked investors what was the best move.
Everything scared them. So they sacrificed the most easily replaceable resource - humans.
cuckingfunt99
Stealth
a year ago
These CEOs saw their peers overhiring in 2021 for no good reason and followed suit.
Now they're again seeing their peers and firing those people.
Khud ka dimag hai ki nahi?
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PunyDrama38
Stealth
a year ago
what??? it was certainly important to discipline my gen z friends. We were acting like we are entitled to high paying job. I have seen this people feeling smug about there salaries. Some of my friends were making fun of gov. jobs, other professionals. That was absolutely necessary. Not only this made us understand humility but also showed the realistic picture of corporates. The way students are in rushing into 5 sub branches of CS, that was laughable. This thing has made them aware at least .
p.s. : i want this world to earn good money for good life, not for FOMO or what society cares.
Nightgeek
Stealth
a year ago
I agree to your point. My batch in college CS had only 50 students, now more than 100. Like actual wtf students following trend like sheeps. They were going to fall someday.
cuckingfunt99
Stealth
a year ago
Govt jobs should always be made fun of imo.
Govt officers (not all ofc) tend to be the most incompetent & entitles who are sucking the nation dry.
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I’ve some pov on it:
1. Most of the high quality talent which got laid off in india got absorbed pretty quickly ex. sharechat folks
2. Many companies did layoffs badly, w/o strategy, did multiple rounds to see at which round investors got pissed vs happy
3. Namesake: Did layoffs because they could (no real runway gains), sack bottom 10%, bonus good pr as investors think company is becoming more efficient
SpeedyAide60
Stealth
a year ago
Where did Sharechat folks go? Which firms?
I don’t think so.
I feel they’ve been extremely important to realign expectations for an entire new generation of workers in the tech industry.
I feel there’s more humility amongst employees and they know it’s not always up, things can really turn around.
Hopefully this helps people stay more balance as we figure out the rest of our working careers
Well it reduced attrition and acted like a hammer to make people return to the office.
It was a power clawback.
On the flip side, I don’t treat my org special anymore. My time for your money.I no longer want to bond with anyone from work, go to tree planting, team lunches. No more of that Vin Diesel shit “We are a family…”
LeafyAnime9
Stealth
a year ago
It's called "taking precaution". When you are a company that big, you cannot "wait" for recession to happen to take steps later. No one was sure what's gonna happen within the next 6 months...either recovery or worse recession(like a really bad one). Now what's the best strategy they have......fire people with 6 months pay, so if it is recovered they can take back employees immediately if they have requirements (whoever is still not placed) OR if it becomes worse, at least they won't lose more money and those people would have been fired anyway.
According to me , it was never meant be game changing. It was primarily to please the investors portraying it as a measure to curb losses on paper and improve cash liquidity in this cash-crunch market
Disagree. They helped some companies cut costs and also correct for overhiring. There definitely was overhiring and in a Growth environment there isn’t incentive to fire low performers. Problem is the companies are overcorrecting sometimes to survive and that means even good performers get caught in this.
BlackSorbet
Stealth
a year ago
Because it was a "Layoff Contagion"
Read this:
https://www.businessinsider.com/stanford-professor-mass-layoffs-caused-by-social-contagion-companies-imitating-2023-2
Toph56
Stealth
a year ago
Seen 3 cycles of this. It’s effective to achieve the following -
1. Get the org to focus on core vs doing 20 side projects and staffing them
2. Manage under performers out - managers to face heat for over hiring / hiring sub par talent - almost a clean up of sorts.
3. Bring more efficiency in the org by reducing people - things will move faster
4. Manage costs and extend runway - sometimes it’s about survival
5. Signal to investors that one is serious about the turn around.
All the macros the OP is calling out are lag metrics and will take time to reflect.
We went through this cycle during pandemic and the last year was the opposite. Just market cycles. The bigger question however is in 3-5 years, AI can make a lot of these jobs redundant in a permanent manner.
While I got laid off, i couldn't see the point of doing it tbh! The business i was responsible for was growing at 60%+ yoy, which in this market i would say is great. It was a knee jerk reaction and put livelihoods of many people in jeopardy. Also I felt it was not based on merit or role elimination but more on "other criterias"
When it comes to cost saving, the first thing that is most doable for a company is to eliminate resources. The company hire resources anticipating the scaling or expansion but in current economic environment where VCs are not shelling out any more, the scaling of bad product or expansion of good product seems unlikely thus the preservation of cash becomes most important and hence 🥭 people.
Indusplateau
Stealth
a year ago
Personally feel you are seeing extreme capitalism world where the Govt is not prepared for the fast outcomes of the private world.
Extreme socialist failed as USSR collapsed. Extreme communism is at play in China.
We need a new Govt which works at an efficiency of private world. And focus generating Roi over their welfare and investments.
TiredCorporat
Stealth
a year ago
1. The salaries are still high but for very limited set of openings (which will always be the case). Overall, the salary expectations of the tech market has been lowered by the spate of layoffs.
2. Rents being high is not a function of higher salaries only. The demand has shot up with people returning to office. Additionally, the no. of residential units added post COVID is the lowest for Bangalore among the major cities. Layoffs or not, these demand and supply levers would have existed.
Glance Inmobi hired cheaper employees who were in need. These cheaper guys will soon switch when time is right
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