Layoffs have battered the industry. The current economic environment is far from ideal and it is not easy to find a new job if you do not have above average skills. What is your prediction when the tech industry will recover?
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@4wyx Always rely on the hyphen, not the space. That's why it's in the top row with the numerals.
Shoot, I knew that'd take two tries. Here are similar numbers from a different source:
Company -- Growth 2018-2022 -- Layoff
Meta -- 144% -- 13%
Alphabet -- 89% -- 7%
Microsoft -- 69% -- 5%
Apple -- 24% -- 0%
https://read.chartr.co/newsletters/2023/1/23/undo
This is what near-zero interest rates, quantitative easing, and stimulus money do. The Tech industry is not dead, if you're at Apple. But almost everybody else over-hired. And the recent layoffs do not begin to compensate.
Here are similar numbers from a different source:
Company Growth, 2018-2022 Layoff
Meta 144% 13%
Alphabet 89% 7%
Microsoft 69% 5%
Apple 24% 0%
https://read.chartr.co/newsletters/2023/1/23/undo
This is what near-zero interest rates, quantitative easing, and stimulus money do. Almost everybody over-hired. And the recent layoffs do not begin to compensate.
The tech industry will NEVER recover; if by recover you mean paying obscene salaries for pie-in-the-sky side projects that may never pan out. However, opportunities for tech workers outside of tech will continue to grow i.e. Healthcare. If you were making a top-tier salary, you better be able to put your mouth where the money is. Now you'll be getting paid on your contribution to generating revenue just like jobs in every other industry.
I don't expect tech to recover this year. I believe the layoffs have only just begun.
This Bloomberg article shows big tech grew ~20% per year, for three years. They've only laid off ~10%.
https://www.bloomberg.com/news/newsletters/2023-01-19/tech-layoffs-microsoft-amazon-still-bigger-than-before-covid
When interest rate was so low big corporates borrowed it for free and invested on real estate, digital assets, crypto, stock exchanges. They all contributed to inflation including housing market boost, while supply chain bottleneck added fuel to the fire.
Billionaires used to be rare. Now they are more common than Bees. They now fight to reach "Trillionaire" tag. Millionaires have no space in modern popular culture. This was the same idiosyncrasy that drove the kings and emperors to conquer. You can even take a penny with you when you die. You only leave what you had...your wealth or legacy. Ask Alexander, Genghis Khan, Gandhi, MLK or Steve Jobs.
There won’t be a “recovery”. These layoffs are just a correction after tech companies got bloated with so much investment capital that they didn’t know what to do with it. They’ll never get that level of capital injection ever again. The money will go to the new kids on the block.
As in every cycle, entrepreneurship explodes in downturns and freshmen businesses will replace many of the current market titans just as FAANG did during the GFC. Corporate media and big tech are going to see significant competition on the other side, but Meta and Google will fare a lot better at weathering the storm than Disney and Comcast.