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.
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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.
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.
That is also very true.
Nothing to be amazed about. Companies exist to make money for shareholders.
People are COGS on the balance sheet. Reducing costs which do not negatively impact revenue is a common tactic to survive when the economic outlook and revenue growth projections are muddy. Shareholders appreciate this and so the stock price appreciates.
Benefits, Good/Bad cultures are just companies trying different mathematical approaches to find a maxima on the productivity - manhours curve. The appearance of giving a damn about employees is just incidental to this process. There is no selfless act.
Exactly 👍🏻
This isn't about Elon's view. It's more about the bad business models which over estimated revenues rather than high bloat.
Spotify is laying off because they cannot keep charging for music streaming and podcasts which YT is bundling. And they possibly aren't able to command prices on ads.
Looks like Spotify wrapped it's employees