Yes, As my Dad used to say "Those who work hard and do their best, will get laid off just like all the rest." Remember in any company you are just a payroll number.
I will be laid off from my infrastructure construction job soon. I'm reasonably confident they will hire me back next spring but I'm going to try and get assurances OR confirmation I won't be hired back when I do get laid off so I know how hard to look for another job. It's not a unionized city or state job but it's a very good non-union workplace and we do work for governments as well as some "green power" construction so, provided governments don't go deep down the austerity path and the green transition isn't put on hold there will be work for us next year!
As I near senior citizenry, I have seen this cycle repeat many times in my 38 year corporate career. Basically put, it's to instil terror and exert control over the workforce, by tacit, but sometimes overt collusion between ever narrowing industry principals. Get everyone afraid of losing their house or condo and that'll snap everyone back to longer work weeks and lower compensation expectations. Protecting and improving Shareholder interests are the foremost responsibility of the CEO and executive management, whose role it is to implement policy towards those ends - beyond all other concerns. A supplicant workforce being a key enabler of that.
Wrong, as in the case of meta and twitter for example they're really suffering from latest business decisions meaning they have to reduce costs since they're losing money and that means firing people who aren't pulling their weight.
"People who aren't pullung their weight" should mean people who have no weight in the company decisions and that have less potential to do damage after being fired...
@@birisuandrei1551 I think that for meta, Zuck try to brute force the metaverse and failed. It's something that will take time and also cannot be concentrated by one corporation to work. The way that he fired people hint that he will try again because of the package that people got. Twitter firing is just barbaric compared to Meta's.
I got let go from Amazon, got into Google but couldn’t find a team due to hiring freeze. I was about to join Stripe but they had layoffs. I decided to join a non tech company that paid just as much. There’s too much nonsense happening at the moment. I’ll look again next year or 2024.
Microsoft's 1000 firings isn't really much. Their have over 200K employees, so its 0,5% of their workforce. Nothing compared to Twitter, Facebook etc. Its also pretty obvious why the numbers aren't that high, because Microsoft has a solid business model compared to the likes of Twitter and Facebook.
@KoeiNL Exactly. These numbers are high, but showing the percentage of employees affected gives a more realistic picture of how drastic (or not drastic) each company's layoff is. 1,000 from Microsoft is a very different story from Lyft's seemingly smaller 700.
Layoff are a indication of poor planning. This might be the calm before the storm. Large companies like to inform people of what’s to come with these initial layoffs.
For a while now it was known that a lot of these big tech companies, especially the Social Media giants in particular, had been sustaining themselves and growing almost entirely through investment money and hadn't really become profitable. So in a sense this whole thing was quite a long time coming. Even if its a little shocking that they started doing it pretty much all at once.
This was generally known by some but Twitter acquisition pretty much let the cat out of the bag for all to see. They had to follow suit or their stocks could crash.
@@HontounoShiramizu Yes I did wonder if the Twitter acquisition was the catalyst for all of this. Since Musk, having just bought the company at an apparently overvalued price would be under more pressure to cut costs quickly. Then the other big tech companies saw it as a chance to let the floodgates open without being singled out as being in trouble.
Im happy this is finally happening. I work at a tech company, do actual work. The last year the company grew 2x in people, most of them completely bullshit jobs of people that just talk, post on linkedin, drink coffee, praise each other for something, do countless meetings and never seem to actually do anything of value. Now all of this fluff is being let go. The startup dream only worked until money was being printed like crazy. As soon as the printer stopped, the show was over.
I was in a couple big tech companies. They can be pretty chaotic, people that don’t even show up to work gets promoted and teams are created for no reason. So laying off 30% or 40% people wouldn’t really impact business operation if you cut the right people.
One thing everyone is leaving out is how few actual engineers are getting let go this round. Yes 60,000 people were fired but digging into the numbers I have seen (and I haven't seen them all) less than 10% of those laid off were engineers. I would like to get a sense of which jobs are at most risk. I suspect it's Recruiting and HR first.
All of those who try to force woke hiring are not really needed to run a business. Most HR people are not even fundamentally necessary for a business to run. A book keeper is necessary, a person who tries to push woke politics are only costing money and doing nothing that inherently earns money. These companies are being forced to get real about the cost of these types.
Anecdotally, I've been watching my LinkedIn network like a vulture to scoop up engineers who are recently available and so far literally none have been affected by the layoffs.
Retired developer here Throughout my career there were always at least 50% of the department basically doing nothing It's not hard to trim if you trim the right people Trim the wrong people and the company will fail
My experience in such companies is that the majority of those released are the most productive. Productive workers don't spend much time schmoozing management and thus are easier to let go.
@@LostInThe0zone I was once at a company where they wanted to downsize a bit They offered anyone who would leave an attractive package All the experienced left and found another job the next day Can't quite remember the company name but it was something like HAL
There is a lot of fake work created these days. Like any bureaucracy, jobs and tasks are created which do not help the company in any way. These environments are highly political, just like a government.
Where I work, in my depaterment, I could get rid of half or more the people and it wouldn't affect productivity. I've rarely been in an environment that such incompetence, lack of work ethic, and lack of professional pride has been tolerated. But I'm not Management, and never will be, because I'm actually useful.
Not only coinbase and meta let people go, they revoked a lot of offer letters which should be added to layoff count as well cause these people were basically left without a job aftre the offers were rescinded
Twitter restructures because past execs left the company in a position of losing a billion dollars a year. Media smears twitter like crazy. Facebook lays off 11k people without notice, while still making a profit, and its barely covered by any news. Jokes on them, twitter has elon's cash and is hiring after the restructure. Anyone without cash like that is going to run out of money during the recession and collapse.
Meta bet big on VR and lost. It's not a surprise that they fired people. Coinbase is a "cryptocurrencies" trading company. It's known the "cryptocurrencies" were volatile and have been going up for years. It was time that they started losing money. They won't be making a recovery anytime soon. That means far fewer users and traders. Coinbase will be dramatically affected. It makes sense.
@@zaco-km3su VR has nothing to do with this. They would have already written off VR investment. VR might sustain itself since people buy games and they kept selling out of headsets which product a profit, not a loss. This is 100% a reduction in ad spending Any company reliant on ads for revenue is going to be hurt really bad in a recession. If anything is wasting money it is zucks obsession with his 2nd life clone.
@@_PatrickO No, it has a lot to do with this. Those headsets aren't going to generate any income and the important part is the most expensive one: software. It was a loss. This was a loss. They hired thousands of people for this VR project that failed.
coinbase are thieves . they still have a bunch of my money and i can't get access to it. they just lock my account for no reason and now way to get a hold of anyone no way to send the money back to my bank. i''m talking us currency not crypto in my account.
Big Tech laying off employees doesn't make them Medium Tech. It just reduces the demand for software engineering talent, allowing the companies to negotiate lower pay going forward. Outside of big tech (medium/small tech to borrow the terminology), this is a fairly common strategy where you simply don't backfill positions that crop up due to natural attrition while still expecting the same level of work from the team. Essentially, a pay-cut + lesser work-life balance for everyone left on the team.
Depends on whether they are actually firing their engineers, or rather people that don't directly contribute to the company's productivity, like marketing, HR, middle management and so on.
They got their wish, now that “everyone can code” the cost of hiring an engineering is drastically going down. Americans are gonna be the most hurt. People thought tech would solve a lot of issues but it didn’t. My eyes where opened when Elon musk couldn’t complete the tunnels and fully automated self drive cars. After that my suspicions where more or less confirmed. I’ve done kids programming for six years now and have seen the hype train pass. We just don’t need so many tech solutions for things 😢
Its not the actual software engineering talent he seems to have laid off. There is no spike in available engineers in the market. It appears to be admin, HR, sales and other office staff. Yes some programmers have resigned but the bulk of the dismissals in the sector are non core in business services.
I've been in enterprise IT since 2009, this is all true. I recently interviewed at a place and the hiring manager asked "if having only a small team of 30" below me was a problem.
Fired does not = laid off. They are very different in the US. If you are laid of your are eligible for unemployment benefits and usually get a severance payment. Also, if you are laid off you do not have grounds for a lawsuit where as when fired you may
I was in high-tech for decades. I was at one company that always had 1 and, often, 2 layoffs every year. They got me after 23 years. I, then, went with another tech company. They had a layoff every June and December. They got me after 9 1/2 years. This continued over the 45 years that I was in the business.
I'm totally bookmarking this one. Great explanation about why middle-management cares about size rather than output, why useless people get promoted to middle-management positions, ... Spot on.
Can’t generalize all middle management. Depends on org structure, business model, and KPIs. I’ve worked at firms where it was a Herculean effort to get approval to hire new talent. We were ALWAYS under staffed.
@@TheStonesQT93 I beg to differ. Generalization is a requirement in order to speak about any topic. Exceptions exist, but that's what they are: exceptions.
@@parametr I think the example where I have the most knowledge is the model where company revenue is booked based on employee utilization. The key KPI is profit margin (not revenue volume - I know sounds weird but it’s true). This means that it’s in the interest of the company that employees are 100% utilized and margins are high (low labor cost). This puts pressure on teams to get the most done, with the least number of people possible. The companies that I’ve seen do this the most are Big 4. Edit: to be clear, total revenue is a performance metric but margin reigns supreme. Hiring budgets are made annually and there needs to be a clear business case for it (I.e. we’re leaving money on the floor since our team is fully booked, here’s the case for that, etc.). As far as I’m aware, consultancy and marketing firms operate like this. I’ve seen it in consulting, only heard about it in marketing. My gut feel is that manufacturing operates like this too, which is why they’re keen on more automation.
Most of the layoffs seem to be in HR (recruiting) , marketing and some tech roles ( an example would be amazon laying off a lot of alexa products staff, but not touching the AWS staff )
@@truthserum6808 It can't really be its own company. AWS was born out of a desire to utilize their infrastructure during the non-christmas season because they build their hardware infrastructure based on the demands of the busy christmas shopping season. The two businesses are still very much intertwined, as are the economics of them.
The hoarding of talent by big tech has had a massive impact on tech scenes globally for many many years, they've driven up wages and reduced the talent pool in certain markets that many companies have just given up even attempted hiring for certain positions (in engineering mainly) and have relied on Near/Offshore teams to handle these roles. My hope is that it will enable smaller tech firms to start opening up to local recruitment of talent again.
All companies requires about 1-3 years of experience for junior software developer roles. It is not unusual for people to send 300+ applications before any company hires them as a junior developer. Some people have had to volunteer (work for free) before they were given a chance. There is no shortage of junior developers, the shortage is at the higher levels.
That’s what I’m hoping for all the laid off people take their experience and what finances they have left and start being competitive to the big tech companies
nobody still can and nothing has to improve. the beauty of IT is that if you have skills and know how to market them it's irrelevant what you're working on. what was happening in these giants was quota hiring. the woke agenda is starting to go out of fashion and so are their employments.
@@BillLaBrie maybe, but they still have degrees and understand the technology in theory. This is already much more than the employees in many places today.
@@stefang5639 I disagree. Like mentioned in the video managers grew their teams just for the sake of growing them. I have seen many incompetent people get employed in Amazon who otherwise wouldn't survive in a startup. Working in tech startup is very demanding in terms of knowledge and personal effort compared to a job in an established corporate like Amazon.
It seems that every time a certain profession gets marked as leading to "guaranteed employment", a few years later that exact profession is facing mass lay-offs 😅
One of the big issues with Twitter's firings compared to the others is that it came so quickly before Elon understood who the company needed and which were bloat. This became apparent when the stories about how they were trying to rehire some important laid off workers shortly after the firings and now how Elon is telling employees they need to basically double their man hours, man hours that could have been provided by the people he just laid off.
Every decision elon has made reeks of panic and knee jerk reaction from someone who doesn't understand anything of the company hes leading. You can feel him pissing his pant trying to cut cost everywhere. While musk fans will keep thinking "all according to plan" lol
No, in every company, there's a handful of people who really make things work. He's likely had people inside the company for months as part of the takeover. They know exactly what they're doing, and worst case, if they accidentally let go someone they need, they offer him a bunch of money to come back.
Before you go off on a rant, you should check on the financial reports of Twitter. It has been losing a boatload of money for years. It has never turned a profit. Do you think it can live off its "credit card loans" forever?
@@teekay_1 How do "people in Twitter" know exactly what needs to be done? Losing a boatload of money year after year is NOT "know what needs to be done." As a business, Twitter needs to make money. Period.
Their mistake is mostly that they scaled up their workforce when their profits increased due to the pandemic - and didn't foresee that the revenues and profits would crash so fast. So they're essentially returning to the headcount they should have.
@Steven Strain Yes and no. Businesses need to compete, and sometimes that means you have to take risks. Sometimes they pay off and you become sustainably dominant in a market. Sometimes they don't and things go bad. (Compare Google's bet on Android and Microsoft's bet on Windows Phone.) Basically, in something as massive as a "world economy", it is very difficult to figure out what is and isn't just trendy and will go away vs a permanent fixture of future society that you want to be a big part of. (Compare the Swedish minister of government for communication saying that "the internet is just a fad" back in 96. A personal favorite. :D ) But there's also indeed a fair few tech companies that simply MUST bet big and dominate SOMETHING to survive, because they were never or almost never profitable to begin with. I'm expecting quite a crash in the whole "rent an electric scooter" and "dark store delivery services" markets for that reason. Tech-drive, far from profitable, and very low margins that require massive scale to reach profitability. Also seeing that pattern with food delivery services right now, with one after the other leaving the country because they "failed to scale to profitability" because of the market being overcrowded by competitors.
Should blame the investor as well, because these investors, like VC, pressure startups so grow big and fast with their invested money in hopes of attracting the next round of funding from other institution, so they can exit their initial investment with stack of ponzi profit.
@@Envinite the investors just want to make money, the business owner chooses what to do with the money. in the video the dude said the business spends more money to make it seem like the next investment cycle is just as necessary.
This mass layoff is foreshadowing for a lot of these new job openings being outsourced overseas. As physical office space isn't a prerequisite anymore, especially in tech, these firms are going to save a lot on both payroll and rent.
Ive seen this happen in my company in another sector. Instead of upskilling and paying their current staff a little more to reward their productivity they kneejerk hire more people and then layoff when they realise they added one too many extra salaries. It's all too endemic.
"ex amazon | ex google | ex microsoft | pursuing my dream" - tips from a real amazon developer - free coding lessons from a senior google developer! there is a joke here but I couldn't find it lol
I already saw 4 to 5 channels like that. 😂😂. I think since companies are not ready to pay for advertisement looking at the present situation. RUclips is also gonna find it difficult to pay the youtubers.
Every company is preparing for recession by trimming any excess overhead that was accumulated during the growth spurt- especially employees. If it were only the ones who never really tried that got cut, it would be easier to handle- unfortunately, some good folks get caught up in the politics of the purge as well. I’m seeing it play out right now at the small company where I’ve been for 2 years now. I’ll be glad when we’re past this and back into the growth phase! Good video!
That varies though. Cross-referencing with the layoffs tracking site they mentioned, it looks like the Booking number is actually the "start of Covid" layoffs from 2020 from when the company had negative revenue due to complete collapse of the travel industry (and resulting cancellations requiring refunds).
Managers probably deflect getting fired onto competent workers. If you remove the competent ones, you need more managers per worker. And firing thousands of people at once means a collapse of wages.
You should look at the TikToks some of these tech employees were making lately about their workplaces. These jobs looked more like vacations than actual jobs. The tech job gravy train is over.
One company fires some, the next one follows. Most likely just to make room to attract the employees that have been laid off from the other companies. Are we checking the hiring too?
Very high level summary of CEO statements, if you actually want to know why each company has let go of staff do your own research, a CEO will never expose their weaknesses in public. You can attribute alot of recent layoffs due to the change of the apple monopoly privacy policy.
Amazon is doing this too and it was not long ago that they were complaining they were running out of people to apply. They treat employees as disposable and Jef Bezos even said he doesn't want people staying at amazon too long.
Well said. If they would really "take responsibility" they would resign, or at least cut their compensation by 50% and give it to a fund to assist the people they had to lay off.
There's also another incentive. Dumping a ton of specialist workforce into the market at the same time crashes the salary goals, as people struggle to compete for the limited work. Considering that US IT is incredibly overpaid compared to the rest of the world, that seems like another major incentive for this massive layoff wave.
Except that this isn't because of "limited work." For years the tech giants have been vacuuming up every person they could get their hands on and small to medium companies have been struggling to staff IT departments as a result. Just because gigantic companies that rely on ad revenue couldn't find a way to convert speculatively hiring thousands of employees into profit doesn't mean there isn't an increasing need for tech workers across all industries.
@@jonb914 oh boo hoo, poor small companies being deprived of "talent". do you know why outsourcing exists? it's because exactly the opposite is the case. it's always the big oppressor that's the cause of your own damn problems. clowns.
It's a common phenomenon in the software industry. It happened to Blizzard. What happens is that the base product is mostly solved and what remains is marketing and sales, so engineers are fired. Then what inevitably happens is that the industry changes and you've got a bunch of business people running around, not understanding why their product can't keep up. Then the next cycle begins. Managers and sales get fired in favour of rehiring engineers. And on and on it goes.
@@shahanaparveen2413 Yes but it is expensive. The company where I've been working for the last 6 years has around 90 software engineers on the bench at any given time. I think they calculated that it's still cheaper than the recruitment process, risk of hiring duds and having a bad product. It's been working so far.
Remember how we were told that the only way to ensure a career (and not deservingly starve for working retail or hospitality) was to seek training and employment in tech?
These firings will fulfill a vicious cycle of depression in the economy. Companies will fire employees, former employees will cut on spending, companies will receive less income and will then fire more people. It's fascinating that these same tech workers were in such high demand the previous years, and now they're being fired.
Jake tran did a vid on this almost an year ago, this has been a very long time coming. Basically he did an interview with some economy analyst or whatever, who said that big tech is essentially insentivised to operate on a loss and any return on profits is actually detrimental. It's essentially keeping on the training wheels for so long that you end up developing bad habits.
Its going to be interesting to see what the job market opportunity in the state of California is going to look like after this. With many of these high paying position in California its going to be hard at the very least to get a high paying job that is 6 figures or more. If you include the fact that California is one of the most expensive places to live their definitely going to be trouble. What's more, you also have people graduating university and they're also going to be competing for the few places that actually hire.
I remember reading an article some time ago that suggested that Texas may become the new California given the large number of Californians moving to Texas.
Keep in mind, a large amount of the jobs cut are not necessarily the high paying variants. Most jobs at meta, uber, twitter etc. Are mostly avergae or low incime jobs.
You also have to keep in mind: Many of these companies are reaching the END of their growth. If you're not having a facebook account, you actively decided against it and will never make one. If you not use Groupon, you still most likely heard of it and didn't decide to use it. And there are more examples, although not being applicable to the complete list of companies mentioned. The biggest impact for these companies will be, if more of the world's population are getting access to the internet. Hence the SpaceX project for providing internet to remote areas. Hence the facebook programs to build internet infrastructure in 3rd world countries. They need to extend the consumer base - be it for themselves, or for other companies related to them.
All well and good, but it's not likely going to work. People in more remote areas likely also have less money. Instead of digging up nuggets of gold they go to panning for gold in a stream. This will not give them the growth they need
Job losses are sad indeed but there being some type of pause on mindless money spending by tech companies is a good thing. We've been seeing how financial backers like Softbank have pushed companies to spend money with no care for sustainability, focus on future and profitability which led to downfall of many promising startups. Hopefully this rude shock will make new upcoming business more responsible with their money
IT is a very precarious job category today. It used to be quite the opposite before the year 2000. If you are looking for job security, be a civil servant or be a physician or a nurse. I became an IT developer because I was passionate about programming. Today I would rather be a civil servant because the drawbacks are really too big in the IT. Looking for a new job can be really very stressing, and the pay is not good at all anymore, especially when you factor in the periods you are not paid at all.
Why not work in IT and be a civil servant? Or work for a contractor that serves the federal government? You should seriously look into this, if you are looking to change jobs. You won't have crazy hours, and you'll have great job security. EDIT: I meant to say a possibility is to work for a contractor that runs the helpdesk for a federal agency. Or, look for an IT position with the federal government, or with your state government.
@@hamsterama Thanks for the info. ‘Federal government’ probably means that you are stationed in the USA? I am currently living in France, and I can tell you that the government here doesn’t favor at all the internal IT anymore and this for many years. The best you can do, if you want to work for the government as an IT guy, is to be a kind of civil servant link between the administration and the external IT providers. Needless to say, that you won’t do any software development at all. What’s even worse is that these providers are often hiring people from India and Eastern Europe. Big companies in Switzerland do the same by the way; I worked there too a lot. Anyway, I was pensioned recently; all this is nothing but a theoretical problem for me.
@@jasc4364 Ah! Because RUclips is a US-centric website, I just presume someone's an American, unless they say otherwise. I didn't know you were in France! Yes, I am in the US, and I have a federal civil service job. I work in a finance-type job, and I have a bachelor's degree in accounting. Our agency uses a government contractor to run the helpdesk and handle our IT problems. We all use computers, and we all have problems every now and then. So, someone with an IT background would easily find work with a federal contractor, because the there's a huge need for those jobs.
Relatable. While I’m not actively looking for a new position, my friends who’ve left government employment for higher-paying private industry jobs keep trying to convince me to jump ship, and I am leery. Don’t want to leave a guaranteed job, albeit with lower pay, just to go to a firm that then lays off my entire department / division just to score shareholder brownie points.
Been in the automotive industry for 16 years, raised in an autoworker family that suffered in the "rust belt" with layoffs since the 80s. So this is nothing new for me, but I can see how panicky young people are getting in the tech industry, they havent had to experience this yet. Get used to it. Go learn a recession proof trade.
Its all about Share price, with cheap money people invest in IT looking for future capital gains. When money is no longer cheap this goes away, which impacts the Share price. Companies can do one of two things, buy back shares using money raised with bonds, as apple did, or increase their PE. Increasing PE means reducing expenses, as increased revenue is not possible. Reducing expenses normally means reducing staff level. While this has a short term hit to a company PE, announcing a major staff reduction makes investors feel that while the PE may take a short term hit, it will improve later. In the end share pricing is maintained. It should be pointed out this is only the beginning and will only end when the cost of money drops, or when cutting staff actually impacts immediate revenue, which means a lot of people could end up being affected.
Curious about the use of the term “firing” vs “laid off”. I usually associate being fired with being terminated with cause which doesn’t sound like it’s the case here.
I work for Amazon, and I'm under no illusion I can be laid off should the c-suite close down the FC where I work. Also last Christmas period was pretty flat with hardly any overtime, so this years might be even flatter, and we haven't been that busy for a while now compared to how busy we were in 2017 - 2020.
I am reminded of one of the speeches of Mr. Narayana Murthy, Indian billionaire businessman and founder of Infosys, one of the world's largest IT companies. This, he said, "Love your job, but never fall in love with your company because you never know when the company stops loving you." This rings so true! 🙂
@@deathstroke2341 Right, I just figured its former Indian President Dr. A.P.J. Abdul Kalam. Let's give the proper attribution to where it is due. Thanks!
What worked for me in the past during hard IT times: Manufacturing, Trading/Factoring, Enterprise Systems. It is normal for CEOs/Management to show more loyalty to their bonuses and bottom line than to the grunts who generate the money. Learn from their actual behavior. Outside of very small businesses loyalty will get you pizza & pinball, not pay.
Working in construction for 20 plus years I really have no idea what it's like working these corporate or big tech jobs but right now skilled trade workers or in huge demand right now even with this recession and were now finally getting paid a decent wage but the point is I would recommend to a lot of people who lost their job to reconsider their career choice. Good luck to everyone.
When you see videos about how some of the employees of these companies spend their day, helping themselves to the free drinks while sunbathing on the company building roof after a yoga session (where maybe 10 minutes of actual work is done) you can kind of see why these places needed to cut back.
I loved the "What the fuck is going on?" drop in the video lol Part of why I enjoy watching your channel, when you present the content it still feels very genuine and relatable because your doing it like an actual human being. Appreciate the team's efforts towards providing information about the going on stuff of the world 🌎 Feel free to drop some coverage on the Canadian Inquiry happening now over the enactment of the emergencies act! TLDR take on it would be super-duper entertaining =) Either way, please know I appreciate yas keeping it as real as you can within the RUclips ecosphere. Great video!
I’m currently working for a small business that specializes in distributing and filtering cooking oil for restaurants. Thankfully it’s recession proof.
A lot of people asking If these companies didnt have a plan or solid business strategy....They do but their strategy is based in a completely optmistic world scenario, which is completely dumb. The biggest digital bank in my country just hired one thousand people while the current scenario is completely negative.
Ceo: "I take responsibility" *by firing you all ofcourse, what else am I gonna do? Find a way to reduce the layoffs? Reduce top management bonus? Not overhire ? Obviously not!*
I started working for a more rapid growing mid sized company. It was interesting in that it grew so fast it still ran a bit like a start up and did not behave like a mid sized company. Even more interesting is how international it was and how the startup feel about it caused so many differences. The American manager was keeping the lean manufacturing philosophy as his hiring practice but the EU and the unions there caused a massive over hiring. The result was the American side of the buisness started to overperform as the recession hit while the EU portion was irresponsible with its hiring. There was about 7% layoffs at the American site (which actually is not unusual for a company going through a certain financial cycle at every start up) while the EU portion had from what I gather a 40 to 50% layoff rate.
I've noticed that there's a weird tendency towards over-hiring in a lot of places. Kind of odd considering employees are often your #1 expense. Kind of curious what you mean by lean hiring though. Is it basically a skeleton crew of full-time hires plus a bunch of more flexible subcontractors/freelancers/outsourcing companies?
@@DefinitelyNotAMachineCultist "Is it basically a skeleton crew of full-time hires plus a bunch of more flexible subcontractors/freelancers/outsourcing companies?" That makes more sense. The EU might over hire but US company's/branches often under-hire and rely on all the things you mentioned plus potentially working off the clock. Inevitably, in a down turn, most company's will have to thin themselves a bit due to a down turn in sales.
@@TimothyCHenderson Yes. The point OP was making is that US companies may have to thin themselves less. If hiring people is easier than firing them (not _easy_ just easier), then it makes even more sense to err on the side of under-hiring and grow incrementally as needed. One solution to the crunch problem might be having multiple teams (working on different days or time slots) and making it a habit for each team to effectively delegate duties at the end of their “shifts”. Effective delegation and knowledge transfer takes practice. Keeping hires to a minimum isn't counter-productive penny-pinching, but having so little people that there's basically 1 guy for each role with no possibility of delegation kind of is. If you absolutely need people who go the extra mile and fill roles that can't really be substituted/delegated/split, either pay them top dollar, or if you're a startup, find people willing to work those hours for shares in addition to pay. If it's a decent stake, and they actually expect the company to take off, it'll provide sufficient extra incentive. If people choose to work crazy extra hours and put in extra effort without extra compensation, that's kind of their fault. _Kind of,_ because it's easy to feel trapped in a job you don't like, which is why people need to get that constantly looking for new opportunities (even when employed in a job they like at that time) isn't disloyalty. Honestly, if freelancing is a viable option in your industry at all, you should probably treat your first corporate gig as prep & training for working by yourself once your first contract is up. Hell, you can work side gigs on weekends and evenings without it conflicting with your day job. Maybe turn them into full-time gigs later.
@@DefinitelyNotAMachineCultist I think a big reason of why it happens is because more people equals bigger company, which increases the prestige of said company. I mean ask yourself how many people in a (large) company are not needed for the core business of that company to function properly yet are there anyway? It's easy to fall in the trap of more workers equalling more revenue being generated particularly when a company is on the rise. What also often happens is that due to technological progress certain employees have become redundant and for one reason or another it's a bigger hassle to fire them than to have them do some sort of menial labour. Even not including stuff like severance pay and bad PR there's also often a fear in companies to simply lose access to that manpower. "What if we fire those people and we suddenly need more people again then we have to find new folk!" This can be a major scare factor in economies where the labour force is not that big and companies have to compete heavily with one another for the few people willing and/or qualified to do the job. Sometimes companies literally hoard people to put it bluntly. Finally managers are definitely not necesarilly competent leaders. I've known superiors who whilst competent at their job definitely were not leader types willing to make such tough decisions. Though admittedly it also partially had to do with the organizational structure making it a herculean task for them to do much beyond a certain point which perhaps resulted in them no longer trying? Particularly if they risk losing a teammember for a longer period of time. A subpar teammember does some work, if you fire said person you are down one person until a replacement can be found and are often still stuck with the same amount of work needing to be done.
What’s scary is the side effects of this could cause problems for businesses that depended on those tech worker’s spending and lead to contagion in the economy
Hey my guy, I have never seen one of your videos before. I just wanted to say the comedy bit at the end with subsribing and there possibly being other channels is why I am now subscribed thank you!
Something you haven't mentioned, but is an important factor, is that lots of tech companies (especially startups) rely on investor money. That's starting to dry up as investors are taking a step back to become more risk-averse and to protect their own assets. As the stock market destablises because of world events (the car crash of the UK's PM, Ukraine, what's happening with China and the new Eastern Block they're building) investors are less keen to part with their money. And companies like Meta are reasonably beholden to their shareholders, and a destablised market makes a lot of people nervous. They're trimming the fat now to weather the storm of an incoming recession, and will always move to protect their own net profits rather than protect their staff. It's likely that this will cross over into other sectors soon, especially ones in the public sector, who usually see their money dry up quicker than other areas.
Corporate system needs to be updated. Every stakeholders interest should be prioritised and not only shareholders. As soon as economic outlook seems negative companies lay off employees to protect the interest of shareholders. In reality its the employees that are contributing the most to company's growth not the shareholders.
Great points but you left one massive important point out: the stock price. The share price of these companies are no longer attractive as their operating costs to which most of it comes from employees, makes the valuation of the company unattractive. Which therefore people sell the stock. Once the valuations become attractive, they will most likely slowly start to hire again
It's amazing how we seem to have get along pretty well before all these platforms came into existence. But then again we had true journalism back then unlike these so-called news agencies that we have now that are basically just activist organizations.
Me too. I watch also other channels about politics and economy. I try to have a balanced diet of videos from both sides of the political isle but it demands energy to sort out the facts out of propaganda. I don't feel I have to work as hard with these guys because they at least seem to try to be unbiased. Everyone makes mistakes and this channel is no exception - the question is, how willing are the people to admit it and correct themselves? This team has shown the willingness to do so.
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In short, don't be too loyal, companies won't be.
Yep. Is a company gonna give you a 2 week notice before they fire you? That's what I thought.
Yes, As my Dad used to say "Those who work hard and do their best, will get laid off just like all the rest." Remember in any company you are just a payroll number.
The days of the golden watch is over.
I always did bare minimum
I will be laid off from my infrastructure construction job soon. I'm reasonably confident they will hire me back next spring but I'm going to try and get assurances OR confirmation I won't be hired back when I do get laid off so I know how hard to look for another job. It's not a unionized city or state job but it's a very good non-union workplace and we do work for governments as well as some "green power" construction so, provided governments don't go deep down the austerity path and the green transition isn't put on hold there will be work for us next year!
As I near senior citizenry, I have seen this cycle repeat many times in my 38 year corporate career. Basically put, it's to instil terror and exert control over the workforce, by tacit, but sometimes overt collusion between ever narrowing industry principals. Get everyone afraid of losing their house or condo and that'll snap everyone back to longer work weeks and lower compensation expectations. Protecting and improving Shareholder interests are the foremost responsibility of the CEO and executive management, whose role it is to implement policy towards those ends - beyond all other concerns. A supplicant workforce being a key enabler of that.
😮
Yes, that is how its been done for years and will continue. Bosses can be shits, but that's their job.
@Royal City Jazz true!!!
And let’s be honest, it’s good for new business development
@@GreenAppelPie
No, you're not honest. You're just ignorant.
The bigger question this raises...do they have a business strategy? Layoffs happen, but hiring and firing wildly suggests no solid strategy.
Wrong, as in the case of meta and twitter for example they're really suffering from latest business decisions meaning they have to reduce costs since they're losing money and that means firing people who aren't pulling their weight.
"People who aren't pullung their weight" should mean people who have no weight in the company decisions and that have less potential to do damage after being fired...
@@birisuandrei1551 I think that for meta, Zuck try to brute force the metaverse and failed. It's something that will take time and also cannot be concentrated by one corporation to work. The way that he fired people hint that he will try again because of the package that people got. Twitter firing is just barbaric compared to Meta's.
@LTNetjak You really do not know what you are talking about if HR is useless for you lmao
When you're this big, you definitely have a strategy. Just remember business plans are dynamic and are changing regularly.
I'm scared of getting fired by one of these big tech companies and I don't even work for any of them.
🤣
🤣🤣
@ghost mall lmao
That would actually be a useful role,
get hired in order to get fired in front of everybody and scare everyone into working 80 hours.
$$
Oh but you will
I love how these CEO's "Take responsibility" but feel none of the actual pain...
Have you seen Zuckerberg's net worth? Sure it's still big but it's dropping like a shit from heaven atm.
because the CEOs job in these large companies is to make more money for the investors no matter the consequences.
Yep. 'Temporarily accept blame' would be more accurate.
the pain they feel is the stock dropping which shows the company overhired...
CEO's should also cut their salaries.
I got let go from Amazon, got into Google but couldn’t find a team due to hiring freeze. I was about to join Stripe but they had layoffs. I decided to join a non tech company that paid just as much. There’s too much nonsense happening at the moment. I’ll look again next year or 2024.
😂😂😂❤❤❤❤❤
chad move
Faster than Leo DiCaprio leaves his girlfriend when they reach 25
That had me cracking
Microsoft's 1000 firings isn't really much. Their have over 200K employees, so its 0,5% of their workforce. Nothing compared to Twitter, Facebook etc. Its also pretty obvious why the numbers aren't that high, because Microsoft has a solid business model compared to the likes of Twitter and Facebook.
Microsoft is well on its way to laying off tens of thousands more
@KoeiNL Exactly. These numbers are high, but showing the percentage of employees affected gives a more realistic picture of how drastic (or not drastic) each company's layoff is. 1,000 from Microsoft is a very different story from Lyft's seemingly smaller 700.
I just realized the video included a ring graph next to each company's layoff number indicating the percentage of their workforce affected.
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Layoff are a indication of poor planning. This might be the calm before the storm. Large companies like to inform people of what’s to come with these initial layoffs.
For a while now it was known that a lot of these big tech companies, especially the Social Media giants in particular, had been sustaining themselves and growing almost entirely through investment money and hadn't really become profitable. So in a sense this whole thing was quite a long time coming. Even if its a little shocking that they started doing it pretty much all at once.
Ding ding ding
Signaling of something big and catastrophic if you ask me.
Not at all surprising really. It just means that the bubble is bursting.
This was generally known by some but Twitter acquisition pretty much let the cat out of the bag for all to see. They had to follow suit or their stocks could crash.
@@HontounoShiramizu Yes I did wonder if the Twitter acquisition was the catalyst for all of this. Since Musk, having just bought the company at an apparently overvalued price would be under more pressure to cut costs quickly. Then the other big tech companies saw it as a chance to let the floodgates open without being singled out as being in trouble.
Im happy this is finally happening. I work at a tech company, do actual work. The last year the company grew 2x in people, most of them completely bullshit jobs of people that just talk, post on linkedin, drink coffee, praise each other for something, do countless meetings and never seem to actually do anything of value. Now all of this fluff is being let go. The startup dream only worked until money was being printed like crazy. As soon as the printer stopped, the show was over.
I was in a couple big tech companies. They can be pretty chaotic, people that don’t even show up to work gets promoted and teams are created for no reason. So laying off 30% or 40% people wouldn’t really impact business operation if you cut the right people.
Cutting them can save a ton of cash with their over priced salary
True, a lot of them are dead-weight business wise
true, I contracted at google and wondered what a lot of people did besides call meetings all day to make it seem like they were busy
This is Amazon reality
One thing everyone is leaving out is how few actual engineers are getting let go this round. Yes 60,000 people were fired but digging into the numbers I have seen (and I haven't seen them all) less than 10% of those laid off were engineers. I would like to get a sense of which jobs are at most risk. I suspect it's Recruiting and HR first.
" I suspect it's Recruiting and HR first."
The world has had enough DI&B meetings, conferences and scolding sessions to last several lifetime.
All of those who try to force woke hiring are not really needed to run a business. Most HR people are not even fundamentally necessary for a business to run. A book keeper is necessary, a person who tries to push woke politics are only costing money and doing nothing that inherently earns money. These companies are being forced to get real about the cost of these types.
HR and marketing. These companies overhired during the pandemic, now they're getting rid of them.
@@sinisterwolf89 trying to push a certain agenda doesn't inherently exclude one from doing something productive as well.
Anecdotally, I've been watching my LinkedIn network like a vulture to scoop up engineers who are recently available and so far literally none have been affected by the layoffs.
Retired developer here
Throughout my career there were always at least 50% of the department basically doing nothing
It's not hard to trim if you trim the right people
Trim the wrong people and the company will fail
My experience in such companies is that the majority of those released are the most productive.
Productive workers don't spend much time schmoozing management and thus are easier to let go.
@@LostInThe0zone Agreed
@@LostInThe0zone I was once at a company where they wanted to downsize a bit
They offered anyone who would leave an attractive package
All the experienced left and found another job the next day
Can't quite remember the company name but it was something like HAL
There is a lot of fake work created these days. Like any bureaucracy, jobs and tasks are created which do not help the company in any way. These environments are highly political, just like a government.
Where I work, in my depaterment, I could get rid of half or more the people and it wouldn't affect productivity. I've rarely been in an environment that such incompetence, lack of work ethic, and lack of professional pride has been tolerated. But I'm not Management, and never will be, because I'm actually useful.
Not only coinbase and meta let people go, they revoked a lot of offer letters which should be added to layoff count as well cause these people were basically left without a job aftre the offers were rescinded
Twitter restructures because past execs left the company in a position of losing a billion dollars a year. Media smears twitter like crazy.
Facebook lays off 11k people without notice, while still making a profit, and its barely covered by any news.
Jokes on them, twitter has elon's cash and is hiring after the restructure. Anyone without cash like that is going to run out of money during the recession and collapse.
Meta bet big on VR and lost. It's not a surprise that they fired people. Coinbase is a "cryptocurrencies" trading company. It's known the "cryptocurrencies" were volatile and have been going up for years. It was time that they started losing money. They won't be making a recovery anytime soon. That means far fewer users and traders. Coinbase will be dramatically affected. It makes sense.
@@zaco-km3su VR has nothing to do with this. They would have already written off VR investment. VR might sustain itself since people buy games and they kept selling out of headsets which product a profit, not a loss.
This is 100% a reduction in ad spending Any company reliant on ads for revenue is going to be hurt really bad in a recession.
If anything is wasting money it is zucks obsession with his 2nd life clone.
@@_PatrickO
No, it has a lot to do with this. Those headsets aren't going to generate any income and the important part is the most expensive one: software. It was a loss. This was a loss. They hired thousands of people for this VR project that failed.
coinbase are thieves . they still have a bunch of my money and i can't get access to it. they just lock my account for no reason and now way to get a hold of anyone no way to send the money back to my bank. i''m talking us currency not crypto in my account.
Big Tech laying off employees doesn't make them Medium Tech. It just reduces the demand for software engineering talent, allowing the companies to negotiate lower pay going forward. Outside of big tech (medium/small tech to borrow the terminology), this is a fairly common strategy where you simply don't backfill positions that crop up due to natural attrition while still expecting the same level of work from the team. Essentially, a pay-cut + lesser work-life balance for everyone left on the team.
Depends on whether they are actually firing their engineers, or rather people that don't directly contribute to the company's productivity, like marketing, HR, middle management and so on.
@@scifino1 indeed.
They got their wish, now that “everyone can code” the cost of hiring an engineering is drastically going down.
Americans are gonna be the most hurt.
People thought tech would solve a lot of issues but it didn’t.
My eyes where opened when Elon musk couldn’t complete the tunnels and fully automated self drive cars. After that my suspicions where more or less confirmed.
I’ve done kids programming for six years now and have seen the hype train pass.
We just don’t need so many tech solutions for things 😢
@@evanmcarthur478 just because Musk had some bad ideas and fails doesn’t mean it’s over. Still many places where (new) tech is very helpful
Its not the actual software engineering talent he seems to have laid off. There is no spike in available engineers in the market. It appears to be admin, HR, sales and other office staff. Yes some programmers have resigned but the bulk of the dismissals in the sector are non core in business services.
I've been in enterprise IT since 2009, this is all true. I recently interviewed at a place and the hiring manager asked "if having only a small team of 30" below me was a problem.
Fired does not = laid off. They are very different in the US. If you are laid of your are eligible for unemployment benefits and usually get a severance payment. Also, if you are laid off you do not have grounds for a lawsuit where as when fired you may
I was in high-tech for decades. I was at one company that always had 1 and, often, 2 layoffs every year. They got me after 23 years. I, then, went with another tech company. They had a layoff every June and December. They got me after 9 1/2 years. This continued over the 45 years that I was in the business.
this is why I stick with my mundane but reliable permanent government job
Moral of the story, get your money and go home they don't care about you
Honestly that's not a bad amount of time to work at either of them. Most people don't stay at the same job for 45 years anymore.
@@noble-mac If I had done that I would not have lasted as long as I did.
@@MsJubjubbird Is there such a thing, today, even in government?
"Love your job but don't love your company, because you may not know when your company stops loving you" - Dr. APJ Abdul Kalam
I'm totally bookmarking this one.
Great explanation about why middle-management cares about size rather than output, why useless people get promoted to middle-management positions, ...
Spot on.
Can’t generalize all middle management. Depends on org structure, business model, and KPIs. I’ve worked at firms where it was a Herculean effort to get approval to hire new talent. We were ALWAYS under staffed.
@@TheStonesQT93 I beg to differ. Generalization is a requirement in order to speak about any topic.
Exceptions exist, but that's what they are: exceptions.
@@parametr yes, generalize based on category of business model :) not across all buckets.
@@TheStonesQT93 mmm, that's an interesting proposal. What categories of business models would we be talking about?
@@parametr I think the example where I have the most knowledge is the model where company revenue is booked based on employee utilization. The key KPI is profit margin (not revenue volume - I know sounds weird but it’s true). This means that it’s in the interest of the company that employees are 100% utilized and margins are high (low labor cost). This puts pressure on teams to get the most done, with the least number of people possible. The companies that I’ve seen do this the most are Big 4. Edit: to be clear, total revenue is a performance metric but margin reigns supreme. Hiring budgets are made annually and there needs to be a clear business case for it (I.e. we’re leaving money on the floor since our team is fully booked, here’s the case for that, etc.). As far as I’m aware, consultancy and marketing firms operate like this. I’ve seen it in consulting, only heard about it in marketing. My gut feel is that manufacturing operates like this too, which is why they’re keen on more automation.
Most of the layoffs seem to be in HR (recruiting) , marketing and some tech roles ( an example would be amazon laying off a lot of alexa products staff, but not touching the AWS staff )
Yep but what’s next?
@@internetpointsbank nothing. 1 or at most 2 years of stagnation and then another boom as the investors start throwing money at startups again.
Because AWS is a solid business
AWS is the money maker for Amazon and should really be it’s own company.
@@truthserum6808 It can't really be its own company. AWS was born out of a desire to utilize their infrastructure during the non-christmas season because they build their hardware infrastructure based on the demands of the busy christmas shopping season. The two businesses are still very much intertwined, as are the economics of them.
The hoarding of talent by big tech has had a massive impact on tech scenes globally for many many years, they've driven up wages and reduced the talent pool in certain markets that many companies have just given up even attempted hiring for certain positions (in engineering mainly) and have relied on Near/Offshore teams to handle these roles.
My hope is that it will enable smaller tech firms to start opening up to local recruitment of talent again.
All companies requires about 1-3 years of experience for junior software developer roles. It is not unusual for people to send 300+ applications before any company hires them as a junior developer. Some people have had to volunteer (work for free) before they were given a chance. There is no shortage of junior developers, the shortage is at the higher levels.
what hoarding of talent? where are you getting your numbers from that it's a hoarding of talent?
Smaller tech firms will have to match what the big companies offered because they want these employees motivated.
@@johnyewtube2286
Instead of working for free they could have gotten involved in the open source community. That would have made them desirable.
@@zaco-km3su oh don't worry, they are, and we're not better off for it.
I hope that his will at least improve the IT landscape in smaller companies and the government, who couldn't compete with the big players until now.
That’s what I’m hoping for all the laid off people take their experience and what finances they have left and start being competitive to the big tech companies
nobody still can and nothing has to improve. the beauty of IT is that if you have skills and know how to market them it's irrelevant what you're working on. what was happening in these giants was quota hiring. the woke agenda is starting to go out of fashion and so are their employments.
The people being let go are likely the least skilled.
@@BillLaBrie maybe, but they still have degrees and understand the technology in theory. This is already much more than the employees in many places today.
@@stefang5639 I disagree. Like mentioned in the video managers grew their teams just for the sake of growing them. I have seen many incompetent people get employed in Amazon who otherwise wouldn't survive in a startup. Working in tech startup is very demanding in terms of knowledge and personal effort compared to a job in an established corporate like Amazon.
Layoff is very different from getting fired. Don’t use them interchangeably
Exactly
How is it different?
It seems that every time a certain profession gets marked as leading to "guaranteed employment", a few years later that exact profession is facing mass lay-offs 😅
Most of the layoffs are from diversity and HR departments. The actual programmers are mostly fine.
@Steven Strain POC
Gold Rushes are a heck of omens of despair and distitution
@@JohnS-il1dr wrong.... 😂😂😂more like POP... POC is last hired, first fired😂
@Steven Strain privileged 😂
One of the big issues with Twitter's firings compared to the others is that it came so quickly before Elon understood who the company needed and which were bloat. This became apparent when the stories about how they were trying to rehire some important laid off workers shortly after the firings and now how Elon is telling employees they need to basically double their man hours, man hours that could have been provided by the people he just laid off.
Every decision elon has made reeks of panic and knee jerk reaction from someone who doesn't understand anything of the company hes leading. You can feel him pissing his pant trying to cut cost everywhere. While musk fans will keep thinking "all according to plan" lol
He wants to get rid of Twitter. He doesn't need the profit; he's wealthy (and with his massive ego, probably believes he can absorb the hit).
No, in every company, there's a handful of people who really make things work. He's likely had people inside the company for months as part of the takeover.
They know exactly what they're doing, and worst case, if they accidentally let go someone they need, they offer him a bunch of money to come back.
Before you go off on a rant, you should check on the financial reports of Twitter. It has been losing a boatload of money for years. It has never turned a profit. Do you think it can live off its "credit card loans" forever?
@@teekay_1 How do "people in Twitter" know exactly what needs to be done? Losing a boatload of money year after year is NOT "know what needs to be done." As a business, Twitter needs to make money. Period.
Beat thing to do is work for yourself. Companies don’t care about loyalty at all
All these CEOs who say they take responsibility should take away cut off they're being honest...
Their mistake is mostly that they scaled up their workforce when their profits increased due to the pandemic - and didn't foresee that the revenues and profits would crash so fast.
So they're essentially returning to the headcount they should have.
@Steven Strain Yes and no. Businesses need to compete, and sometimes that means you have to take risks. Sometimes they pay off and you become sustainably dominant in a market. Sometimes they don't and things go bad. (Compare Google's bet on Android and Microsoft's bet on Windows Phone.)
Basically, in something as massive as a "world economy", it is very difficult to figure out what is and isn't just trendy and will go away vs a permanent fixture of future society that you want to be a big part of. (Compare the Swedish minister of government for communication saying that "the internet is just a fad" back in 96. A personal favorite. :D )
But there's also indeed a fair few tech companies that simply MUST bet big and dominate SOMETHING to survive, because they were never or almost never profitable to begin with. I'm expecting quite a crash in the whole "rent an electric scooter" and "dark store delivery services" markets for that reason. Tech-drive, far from profitable, and very low margins that require massive scale to reach profitability. Also seeing that pattern with food delivery services right now, with one after the other leaving the country because they "failed to scale to profitability" because of the market being overcrowded by competitors.
Should blame the investor as well, because these investors, like VC, pressure startups so grow big and fast with their invested money in hopes of attracting the next round of funding from other institution, so they can exit their initial investment with stack of ponzi profit.
@Steven Strain well this was a trend and good sense but nobody can see into the future or none of these layoffs would be happening
@@Envinite the investors just want to make money, the business owner chooses what to do with the money. in the video the dude said the business spends more money to make it seem like the next investment cycle is just as necessary.
This mass layoff is foreshadowing for a lot of these new job openings being outsourced overseas. As physical office space isn't a prerequisite anymore, especially in tech, these firms are going to save a lot on both payroll and rent.
Ive seen this happen in my company in another sector. Instead of upskilling and paying their current staff a little more to reward their productivity they kneejerk hire more people and then layoff when they realise they added one too many extra salaries. It's all too endemic.
This reminds me of the 90's tech bubble.
CEO: I take full responsibility… by firing all of you… and taking all my bonuses checks to the bank
We can also expect many new youtubers, coders, who will build their channel on them being former big tech employees.
"ex amazon | ex google | ex microsoft | pursuing my dream"
- tips from a real amazon developer
- free coding lessons from a senior google developer!
there is a joke here but I couldn't find it lol
Great
I already saw 4 to 5 channels like that.
😂😂.
I think since companies are not ready to pay for advertisement looking at the present situation. RUclips is also gonna find it difficult to pay the youtubers.
Every company is preparing for recession by trimming any excess overhead that was accumulated during the growth spurt- especially employees. If it were only the ones who never really tried that got cut, it would be easier to handle- unfortunately, some good folks get caught up in the politics of the purge as well. I’m seeing it play out right now at the small company where I’ve been for 2 years now. I’ll be glad when we’re past this and back into the growth phase! Good video!
That varies though.
Cross-referencing with the layoffs tracking site they mentioned, it looks like the Booking number is actually the "start of Covid" layoffs from 2020 from when the company had negative revenue due to complete collapse of the travel industry (and resulting cancellations requiring refunds).
Pretty sure Zucker lost a huge hunk of his personal wealth.
Managers probably deflect getting fired onto competent workers.
If you remove the competent ones, you need more managers per worker.
And firing thousands of people at once means a collapse of wages.
You should look at the TikToks some of these tech employees were making lately about their workplaces. These jobs looked more like vacations than actual jobs. The tech job gravy train is over.
Some just didn’t manage their balance sheets properly
One company fires some, the next one follows. Most likely just to make room to attract the employees that have been laid off from the other companies. Are we checking the hiring too?
Very high level summary of CEO statements, if you actually want to know why each company has let go of staff do your own research, a CEO will never expose their weaknesses in public. You can attribute alot of recent layoffs due to the change of the apple monopoly privacy policy.
Amazon is doing this too and it was not long ago that they were complaining they were running out of people to apply. They treat employees as disposable and Jef Bezos even said he doesn't want people staying at amazon too long.
CEO's "take responsibility" for their mistakes by firing you.
In many if these cases hiring you was tge mistake and they are just correcting it.
Well said. If they would really "take responsibility" they would resign, or at least cut their compensation by 50% and give it to a fund to assist the people they had to lay off.
There's also another incentive. Dumping a ton of specialist workforce into the market at the same time crashes the salary goals, as people struggle to compete for the limited work.
Considering that US IT is incredibly overpaid compared to the rest of the world, that seems like another major incentive for this massive layoff wave.
It’s not overpaid, it’s the free market working at its finest, need to accept both end of this
Except that this isn't because of "limited work." For years the tech giants have been vacuuming up every person they could get their hands on and small to medium companies have been struggling to staff IT departments as a result. Just because gigantic companies that rely on ad revenue couldn't find a way to convert speculatively hiring thousands of employees into profit doesn't mean there isn't an increasing need for tech workers across all industries.
yeah "specialist", probably in being quota hire.
@@jonb914 oh boo hoo, poor small companies being deprived of "talent". do you know why outsourcing exists? it's because exactly the opposite is the case. it's always the big oppressor that's the cause of your own damn problems. clowns.
@@jonb914 I agree that there's demand for IT staff. I'm just telling that smaller companies are unable to pay those huge salaries.
And yet the only (shitty) argument for not taxing Corporations or the rich is:" We aRe GoNnA mAkE mORe JOBs"
Feel this is also about employers wanting their workforce back in an office space
😂🙄
It's a common phenomenon in the software industry. It happened to Blizzard. What happens is that the base product is mostly solved and what remains is marketing and sales, so engineers are fired. Then what inevitably happens is that the industry changes and you've got a bunch of business people running around, not understanding why their product can't keep up. Then the next cycle begins. Managers and sales get fired in favour of rehiring engineers. And on and on it goes.
is a balance of both possible?
@@shahanaparveen2413 Yes but it is expensive. The company where I've been working for the last 6 years has around 90 software engineers on the bench at any given time. I think they calculated that it's still cheaper than the recruitment process, risk of hiring duds and having a bad product. It's been working so far.
Jack: "I'm not firing anyone."
The Gang:
Remember how we were told that the only way to ensure a career (and not deservingly starve for working retail or hospitality) was to seek training and employment in tech?
These firings will fulfill a vicious cycle of depression in the economy. Companies will fire employees, former employees will cut on spending, companies will receive less income and will then fire more people.
It's fascinating that these same tech workers were in such high demand the previous years, and now they're being fired.
As they say "we aren't firing people, we optimise"
Jake tran did a vid on this almost an year ago, this has been a very long time coming. Basically he did an interview with some economy analyst or whatever, who said that big tech is essentially insentivised to operate on a loss and any return on profits is actually detrimental. It's essentially keeping on the training wheels for so long that you end up developing bad habits.
Its going to be interesting to see what the job market opportunity in the state of California is going to look like after this. With many of these high paying position in California its going to be hard at the very least to get a high paying job that is 6 figures or more. If you include the fact that California is one of the most expensive places to live their definitely going to be trouble. What's more, you also have people graduating university and they're also going to be competing for the few places that actually hire.
It might mean deflation or disinflation, which is exactly what the fed wants. Unemployment = less spending = less demand = deflation/disinflation.
Don’t worry about California. Worry about those red states that already DONT have jobs
I remember reading an article some time ago that suggested that Texas may become the new California given the large number of Californians moving to Texas.
@@sashamoore9691 we’re actually not doing that bad.
Keep in mind, a large amount of the jobs cut are not necessarily the high paying variants. Most jobs at meta, uber, twitter etc. Are mostly avergae or low incime jobs.
Would be good to also hear about lay off of less to not popular companies in other industries.
No one is indespendible . Flexibility and being creative is the key to survive and thrive.
Continue life. Evolve .
You also have to keep in mind: Many of these companies are reaching the END of their growth. If you're not having a facebook account, you actively decided against it and will never make one. If you not use Groupon, you still most likely heard of it and didn't decide to use it. And there are more examples, although not being applicable to the complete list of companies mentioned. The biggest impact for these companies will be, if more of the world's population are getting access to the internet. Hence the SpaceX project for providing internet to remote areas. Hence the facebook programs to build internet infrastructure in 3rd world countries. They need to extend the consumer base - be it for themselves, or for other companies related to them.
This is a key point that everyone seems to be ignoring.
All well and good, but it's not likely going to work. People in more remote areas likely also have less money. Instead of digging up nuggets of gold they go to panning for gold in a stream. This will not give them the growth they need
You never see the CEO take a cut in pay to bring down spending costs. It always has to be whomever is on the bottom of the totem pole.
Job losses are sad indeed but there being some type of pause on mindless money spending by tech companies is a good thing. We've been seeing how financial backers like Softbank have pushed companies to spend money with no care for sustainability, focus on future and profitability which led to downfall of many promising startups.
Hopefully this rude shock will make new upcoming business more responsible with their money
Kudos to the sarcastic, honest humour of the good-bye letter at 12:29 🤣
IT is a very precarious job category today. It used to be quite the opposite before the year 2000. If you are looking for job security, be a civil servant or be a physician or a nurse.
I became an IT developer because I was passionate about programming. Today I would rather be a civil servant because the drawbacks are really too big in the IT. Looking for a new job can be really very stressing, and the pay is not good at all anymore, especially when you factor in the periods you are not paid at all.
Why not work in IT and be a civil servant? Or work for a contractor that serves the federal government? You should seriously look into this, if you are looking to change jobs. You won't have crazy hours, and you'll have great job security. EDIT: I meant to say a possibility is to work for a contractor that runs the helpdesk for a federal agency. Or, look for an IT position with the federal government, or with your state government.
@@hamsterama
Thanks for the info. ‘Federal government’ probably means that you are stationed in the USA?
I am currently living in France, and I can tell you that the government here doesn’t favor at all the internal IT anymore and this for many years. The best you can do, if you want to work for the government as an IT guy, is to be a kind of civil servant link between the administration and the external IT providers. Needless to say, that you won’t do any software development at all. What’s even worse is that these providers are often hiring people from India and Eastern Europe. Big companies in Switzerland do the same by the way; I worked there too a lot.
Anyway, I was pensioned recently; all this is nothing but a theoretical problem for me.
@@jasc4364 Ah! Because RUclips is a US-centric website, I just presume someone's an American, unless they say otherwise. I didn't know you were in France! Yes, I am in the US, and I have a federal civil service job. I work in a finance-type job, and I have a bachelor's degree in accounting. Our agency uses a government contractor to run the helpdesk and handle our IT problems. We all use computers, and we all have problems every now and then. So, someone with an IT background would easily find work with a federal contractor, because the there's a huge need for those jobs.
wow, It's really good to be in consulting right now!
As someone in job market in tech space, I can feel it.
me too :(
Relatable. While I’m not actively looking for a new position, my friends who’ve left government employment for higher-paying private industry jobs keep trying to convince me to jump ship, and I am leery. Don’t want to leave a guaranteed job, albeit with lower pay, just to go to a firm that then lays off my entire department / division just to score shareholder brownie points.
Going through college during the pandemic and now I will have to find a job during a potential recession, horray.
Been in the automotive industry for 16 years, raised in an autoworker family that suffered in the "rust belt" with layoffs since the 80s. So this is nothing new for me, but I can see how panicky young people are getting in the tech industry, they havent had to experience this yet. Get used to it. Go learn a recession proof trade.
Its all about Share price, with cheap money people invest in IT looking for future capital gains. When money is no longer cheap this goes away, which impacts the Share price. Companies can do one of two things, buy back shares using money raised with bonds, as apple did, or increase their PE. Increasing PE means reducing expenses, as increased revenue is not possible. Reducing expenses normally means reducing staff level. While this has a short term hit to a company PE, announcing a major staff reduction makes investors feel that while the PE may take a short term hit, it will improve later. In the end share pricing is maintained.
It should be pointed out this is only the beginning and will only end when the cost of money drops, or when cutting staff actually impacts immediate revenue, which means a lot of people could end up being affected.
Getting fired and getting laid off are two very different things
Curious about the use of the term “firing” vs “laid off”. I usually associate being fired with being terminated with cause which doesn’t sound like it’s the case here.
I work for Amazon, and I'm under no illusion I can be laid off should the c-suite close down the FC where I work. Also last Christmas period was pretty flat with hardly any overtime, so this years might be even flatter, and we haven't been that busy for a while now compared to how busy we were in 2017 - 2020.
I hope that you have a good financial cushion you can rely on for months, in case you lose your job.
@@mathisnotforthefaintofheart I retire in 27 days, so I'm good. Its my workmates who I'd feel compassion for.
@@Puzzoozoo Congrats!!!
First time watching TLDR Business, and I'm really surprised by the change of tone compared to the rest of the TLDR tree.
It's refreshing though!
I am reminded of one of the speeches of Mr. Narayana Murthy, Indian billionaire businessman and founder of Infosys, one of the world's largest IT companies. This, he said, "Love your job, but never fall in love with your company because you never know when the company stops loving you." This rings so true! 🙂
APJ abdul kalam
@@deathstroke2341 Right, I just figured its former Indian President Dr. A.P.J. Abdul Kalam. Let's give the proper attribution to where it is due. Thanks!
What worked for me in the past during hard IT times: Manufacturing, Trading/Factoring, Enterprise Systems.
It is normal for CEOs/Management to show more loyalty to their bonuses and bottom line than to the grunts who generate the money. Learn from their actual behavior. Outside of very small businesses loyalty will get you pizza & pinball, not pay.
Working in construction for 20 plus years I really have no idea what it's like working these corporate or big tech jobs but right now skilled trade workers or in huge demand right now even with this recession and were now finally getting paid a decent wage but the point is I would recommend to a lot of people who lost their job to reconsider their career choice.
Good luck to everyone.
When you see videos about how some of the employees of these companies spend their day, helping themselves to the free drinks while sunbathing on the company building roof after a yoga session (where maybe 10 minutes of actual work is done) you can kind of see why these places needed to cut back.
I loved the "What the fuck is going on?" drop in the video lol
Part of why I enjoy watching your channel, when you present the content it still feels very genuine and relatable because your doing it like an actual human being.
Appreciate the team's efforts towards providing information about the going on stuff of the world 🌎
Feel free to drop some coverage on the Canadian Inquiry happening now over the enactment of the emergencies act! TLDR take on it would be super-duper entertaining =)
Either way, please know I appreciate yas keeping it as real as you can within the RUclips ecosphere. Great video!
We were all thinking it haha
I’m currently working for a small business that specializes in distributing and filtering cooking oil for restaurants. Thankfully it’s recession proof.
This was always going to happen a lot of these companies like Amazon just put it off till after the midterms.
That "severance" letter is absolute gold
'As such, you're off mate' 👌
end of the day its a job, firing is inevitable
A lot of people asking If these companies didnt have a plan or solid business strategy....They do but their strategy is based in a completely optmistic world scenario, which is completely dumb. The biggest digital bank in my country just hired one thousand people while the current scenario is completely negative.
very insightful yet concise! deserves my sub :D
If you get fired by Amazon, then they are making you a favor
Ceo: "I take responsibility" *by firing you all ofcourse, what else am I gonna do? Find a way to reduce the layoffs? Reduce top management bonus? Not overhire ? Obviously not!*
I am in my 3rd year in college as cs major. I am finally looking for internships and it couldn’t be a worse time. Can’t get anything in this market😢
I started working for a more rapid growing mid sized company. It was interesting in that it grew so fast it still ran a bit like a start up and did not behave like a mid sized company. Even more interesting is how international it was and how the startup feel about it caused so many differences. The American manager was keeping the lean manufacturing philosophy as his hiring practice but the EU and the unions there caused a massive over hiring. The result was the American side of the buisness started to overperform as the recession hit while the EU portion was irresponsible with its hiring. There was about 7% layoffs at the American site (which actually is not unusual for a company going through a certain financial cycle at every start up) while the EU portion had from what I gather a 40 to 50% layoff rate.
I've noticed that there's a weird tendency towards over-hiring in a lot of places. Kind of odd considering employees are often your #1 expense.
Kind of curious what you mean by lean hiring though.
Is it basically a skeleton crew of full-time hires plus a bunch of more flexible subcontractors/freelancers/outsourcing companies?
@@DefinitelyNotAMachineCultist "Is it basically a skeleton crew of full-time hires plus a bunch of more flexible subcontractors/freelancers/outsourcing companies?" That makes more sense. The EU might over hire but US company's/branches often under-hire and rely on all the things you mentioned plus potentially working off the clock. Inevitably, in a down turn, most company's will have to thin themselves a bit due to a down turn in sales.
@@TimothyCHenderson Yes. The point OP was making is that US companies may have to thin themselves less.
If hiring people is easier than firing them (not _easy_ just easier), then it makes even more sense to err on the side of under-hiring and grow incrementally as needed.
One solution to the crunch problem might be having multiple teams (working on different days or time slots) and making it a habit for each team to effectively delegate duties at the end of their “shifts”.
Effective delegation and knowledge transfer takes practice.
Keeping hires to a minimum isn't counter-productive penny-pinching, but having so little people that there's basically 1 guy for each role with no possibility of delegation kind of is.
If you absolutely need people who go the extra mile and fill roles that can't really be substituted/delegated/split, either pay them top dollar, or if you're a startup, find people willing to work those hours for shares in addition to pay.
If it's a decent stake, and they actually expect the company to take off, it'll provide sufficient extra incentive.
If people choose to work crazy extra hours and put in extra effort without extra compensation, that's kind of their fault.
_Kind of,_ because it's easy to feel trapped in a job you don't like, which is why people need to get that constantly looking for new opportunities (even when employed in a job they like at that time) isn't disloyalty.
Honestly, if freelancing is a viable option in your industry at all, you should probably treat your first corporate gig as prep & training for working by yourself once your first contract is up.
Hell, you can work side gigs on weekends and evenings without it conflicting with your day job.
Maybe turn them into full-time gigs later.
Basically the US side was shit to their employees, while the EU portion was better.
@@DefinitelyNotAMachineCultist I think a big reason of why it happens is because more people equals bigger company, which increases the prestige of said company. I mean ask yourself how many people in a (large) company are not needed for the core business of that company to function properly yet are there anyway? It's easy to fall in the trap of more workers equalling more revenue being generated particularly when a company is on the rise.
What also often happens is that due to technological progress certain employees have become redundant and for one reason or another it's a bigger hassle to fire them than to have them do some sort of menial labour. Even not including stuff like severance pay and bad PR there's also often a fear in companies to simply lose access to that manpower. "What if we fire those people and we suddenly need more people again then we have to find new folk!" This can be a major scare factor in economies where the labour force is not that big and companies have to compete heavily with one another for the few people willing and/or qualified to do the job. Sometimes companies literally hoard people to put it bluntly.
Finally managers are definitely not necesarilly competent leaders. I've known superiors who whilst competent at their job definitely were not leader types willing to make such tough decisions. Though admittedly it also partially had to do with the organizational structure making it a herculean task for them to do much beyond a certain point which perhaps resulted in them no longer trying? Particularly if they risk losing a teammember for a longer period of time. A subpar teammember does some work, if you fire said person you are down one person until a replacement can be found and are often still stuck with the same amount of work needing to be done.
It looks more and more like its only a beginning.
It feels like there will be long ques at various job centres for a while...
thank you fore your service we need you no more after what you left
Software tech is horribly overstaffed while hardware tech is understaffed.
Lol you're naive to say that
@@shubhmishra66 I'd like to see you both prove your statements.
Depends on which software field you're talking about . Full stack web devs are still in demand and have a lot of vacancies (but its decreased a bit)
@@johnsamuel1999 Amen. Now 100K are looking for jobs. Will code for food 🥘.
@@prettypenny2353 most of roles that got layed off were in HR , marketing and only a small portion of those were tech roles
...wasn't everyone recently just panicking how no one wants to work and employers are finding it hard to find workers? yeah. sure
What’s scary is the side effects of this could cause problems for businesses that depended on those tech worker’s spending and lead to contagion in the economy
Hey my guy, I have never seen one of your videos before. I just wanted to say the comedy bit at the end with subsribing and there possibly being other channels is why I am now subscribed thank you!
Something you haven't mentioned, but is an important factor, is that lots of tech companies (especially startups) rely on investor money. That's starting to dry up as investors are taking a step back to become more risk-averse and to protect their own assets. As the stock market destablises because of world events (the car crash of the UK's PM, Ukraine, what's happening with China and the new Eastern Block they're building) investors are less keen to part with their money. And companies like Meta are reasonably beholden to their shareholders, and a destablised market makes a lot of people nervous. They're trimming the fat now to weather the storm of an incoming recession, and will always move to protect their own net profits rather than protect their staff. It's likely that this will cross over into other sectors soon, especially ones in the public sector, who usually see their money dry up quicker than other areas.
Corporate system needs to be updated. Every stakeholders interest should be prioritised and not only shareholders. As soon as economic outlook seems negative companies lay off employees to protect the interest of shareholders. In reality its the employees that are contributing the most to company's growth not the shareholders.
Great points but you left one massive important point out: the stock price. The share price of these companies are no longer attractive as their operating costs to which most of it comes from employees, makes the valuation of the company unattractive. Which therefore people sell the stock. Once the valuations become attractive, they will most likely slowly start to hire again
Salaries of junior and middle folks are a small part of the operating expenses
It's amazing how we seem to have get along pretty well before all these platforms came into existence. But then again we had true journalism back then unlike these so-called news agencies that we have now that are basically just activist organizations.
that could have been a good joke... "I'm not firing anyone... yet"
I was going back to school for tech but now I kinda don’t want to now.
Loved the intro! The F bomb and Leo's girlfriends had me laughing. Love your wit as much as the news content.
Everyone at tldr: 😕🤯🥶😵
the new video title: "Everyone is Fired"
I genuinely sent round a memo in advance to avoid any concern 😅 - Jack
I love TLDR! been watching since you guys only had one channel and
Me too. I watch also other channels about politics and economy. I try to have a balanced diet of videos from both sides of the political isle but it demands energy to sort out the facts out of propaganda. I don't feel I have to work as hard with these guys because they at least seem to try to be unbiased. Everyone makes mistakes and this channel is no exception - the question is, how willing are the people to admit it and correct themselves? This team has shown the willingness to do so.
Overhiring can be caused by low interest rate. If you think about economics in a certain manner, you may understand why.
Anyone fired by these mentioned companies watching this video
What kind of jobs are the ones being fired; sales, marketing, middle management, IT, software, janitors, etc, etc?
Is that fireing worldwide or us??
According to another commenter, it’s worldwide
@@yahnmahn9035 thank you 😊
Man I'm glad I don't work in a sector with so much incompetence.