The Q layoff is just a precursor to a more general cooling of tech that is going to happen soon. China is in a tailspin, americans are tapped out (still), europe is a mess, the dollar versus other currencies is getting stronger (and as such making our exports and labor costs even less competitive), and valuation of tech companies is at a high and has been in slow decline over the past few months, even in the absence of any interest rate movement from the Fed. You think the Q is bad, just wait until tech takes a nose dive, and see what happens to a tech-only concentrated economy like the Bay Area. Been there, done that, and saw the DotCom crash days. It wasn't pretty for a lot of techies, much worse then elsewhere. Plus, you still had to deal with higher cost of living. Look at all the tech high flyers. They are all well off their peak and no "new news" seems to be helping prop share prices. Apple, LinkedIn, Facebook, Twitter, etc....What's going to be interesting is when the stocks tanks even further, and folks in tech banking on their options/RSUs to pay for that higher cost of living...That's certainly going to be interesting in tech-concentrated Bay Area.
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Yes who doesn't own one. No longer a need for fast refresh cycles. Sloooowing growth is bad for stocks which have priced in high growth and high margins. Where's @goodenough when u need him?
Deep Freeze? What? We live and die with our wonderful toys now. Who doesn't own cell phones, tablets, computers, etc.
Little Birdie Yellen will save us all!! Nirp nirp nirp chirp chirp chirp
NASDAQ off the rocker again like it has been for some time now. The only redeeming fact of Q is that it's fallen so low, it probably.isn't going to fall much more, unlike other tech companies.
Some of the other tech companies like sandiskand micron got totally hammered. Id hate to be a worker there watching my options get obliterated
When tech slows down, everyone gets impacted. Its not a matter of if, but simply a matter of when. Those of you that think you will be immune because you are software clearly have not lived through a tech recessionary period and are in denial.
Software people would be just as impacted. In the least impact way, your previously expected d supplemental income from your stock options or stock would drastically take a hit, and if you didn't factor in that hit into your operating budget (for example, your ridiculous home purchase in the bay area ) like many people forget to do, you would get pretty screwed to. Take linkedin for example. Peek was $240/share. Now $188/share and falling. That was part of your $200-300k comp that just took a pretty big hit. Take away the stock/stock option value , that base salary in the bay area isn't going to let you sustain yourself well in the bay area. Housing is so much more ridiculously disproportionate amount of expense versus base income, even worse than in SD and oc. In the worst case so of the software will also endnup getting outsourced, if growth cools. The only reason why it hasn't been as widespread yet is because many of those companies are still in the growth phase and are still richly valued by wall street, so the companies haven't had a need to clamp down on cost. But with a slowdown, that will definitely happen. Just look at what is going on with the biggest companies that are lacking growth like oracle and Microsoft.
Very well said
People usually have very short memory n they tend to think prices always go up
Fyi. Even software professionals would be impacted
Very well said
People usually have very short memory n they tend to think prices always go up
There might be some truth to what you say in hardware oriented positions. For software coders, absolutely not true. I have lived through the 99-00 period when I was just out of college. The large companies that you have referenced are much more diversified, have cash reserves up the you know what...I do not see any let up in demand for competent software developers.