Filthy Rich Tech Companies Are Entering Crisis Mode
HTML-код
- Опубликовано: 9 июл 2024
- Have Companies & The US Government Pay You!
app.silomarkets.com/launch
Have you ever noticed that tech companies have an absurd amount of engineers to run a seemingly small number of services? Facebook had as many as 86,000 employees, Google had as many as 190,000 employees, and Apple had as many as 164,000 employees. It may be confusing as to why these companies have so many engineers, but when you take a deeper look, it becomes clear. For starters, many of these companies don’t hire based on need. They hire simply to acquire the best engineers and they work on placing them in positions afterward. On top of this, most of these engineers end up working on features and projects that will either never get released or the consumer will never notice. And finally, these companies have gotten into the mindset that more employees equal more growth, and they’ve been hiring like crazy and chasing infinite growth. But, for the first time, tech companies and startups are starting to see numbers go down and they’re slashing employees left and right. This video explains the overhiring crisis within tech and why these tech companies had so many employees to begin with.
Earn Interest From The Government & Top Corporations:
(iOS App for US Residents)
www.silomarkets.com/waiting-l...
Free Weekly Newsletter With Insiders:
logicallyanswered.substack.com/
Socials:
/ hariharan.jayakumar
Discord Community:
/ discord
Timestamps:
0:00 - Software Engineer Count
2:53 - The Overhiring Crisis
5:50 - Filthy Rich
9:18 - Chasing Infinite Growth
11:27 - The State Of Tech
Resources:
pastebin.com/ESdpDyia
Disclaimer:
This video is not a solicitation or personal financial advice. All investing involves risk. Please do your own research.
www.silomarkets.com/disclosures 
Наука
![Skilla Baby - Misfit (Feat. Polo G) [Official Video]](http://i.ytimg.com/vi/IjsylSnNMyw/mqdefault.jpg)
![Sean Rii, Karyon, Sharzkii - Taungule [My Love] (Official Music Video)](http://i.ytimg.com/vi/eJoMuypbSzQ/mqdefault.jpg)
I just love it that we are still calling it Facebook and not meta🤣
I think it's a bit weird because apparently Facebook still exist separately from Mets but most just called what they view as Meta Facebook anyway and I'm the same way. It's not even laziness is just really cares you know I always be Facebook to me. Until they change the actual app to meta. I don't understand why they would change the name and not double down on changing the actual apps name to Meta it's just kind of ridiculous me
Who calls it Meta haha
@@LogicallyAnswered why is Meta!
We are not legally obligated so yea
@@one-above-allothersillum-iq3qz the face book app is still Facebook but the name of the company is now meta
Tech companies that only try to maintain their platform end up like Blackberry, Palm, etc that were market leaders and then plummeted into obscurity.
Exactly. Tech moves quickly and if you don’t either acquire or expand you get replaced real quick. Look at Yahoo, AOL, MySpace. Too many major players died because they just followed the traditional rules.
Agree! A lot of examples of companies that just wanted to maintain their platforms just to end up disappearing and people moved on!
Their employees are also not very motivated to work hard to get these new ideas working, considering that there is nothing in it for them. There are a lot of people at those tech companies who are fully capable of doing much better.
So much potential is wasted when such smart people know they're in an organization that is built to make profits, then won't share any of the profits with them if they work hard to get a moonshot idea working. They know that all of the benefits will go to a few large shareholders who did none of that work and are only receiving money for starting off with money.
In the movie Office Space Peter Gibbons makes an excellent point that if he worked as hard as he could so that Initech could ship more units he wouldn't see a dime of that extra revenue.
Well the major difference is corps started buying potential competitors. Lax anti-trust has allowed companies to become sprawling (service and IP) monsters.
those are hardware companies. this video is about software.
Do you think they might over-hire to prevent competition/startups?
Yep
Definitely
Also, they overhire because the key executives own apartment complexes near corporate headquarters. So the execs spend shareholder dollars to overhire, then the execs directly benefit from higher rents and increasing real estate values that the execs own personally.
@@FogelsChannel damn never thought about that...
To be true though mass layoffs seem like shooting that idea in the foot. Now instead of one worker from Google trying to find a startup you have entire teams all able to gather together and fill up employer rolls. Especially since I doubt they vettedc the layoff list to only include their worst performers.
If you are a startup looking to get going and fight the competition this is the best time to do it.
This setup creates a weird situation sometimes. The employees hired sometimes will have big names listed in their resume but never work on any projects that create value. Which leads to them climbing the corporate ladder by switching jobs quickly but having no real work experience and when actual working knowledge is required, they do not understand what needs to be done.
Yeah that’s quite a shame
I work in and out of big tech companies and have seen a few of those. VPs of Nothing and Leads of Imagination. The worst part if that it only clicks 3-6months into the hiring cycle that they're not up to par
Just makes it harder for the filterers ig
Hello dear BITSian. It seems we have crossed paths :)
I have seen this many times. The assumption is that everyone that works at these Silicon Valley companies are great. The reality is they have just as much dead wood as anywhere else.
Clients often underestimate the work that Devs needs to do. Even things that may appear simple can take a lot of time. AirBnb can't be cloned by a sole programmer in a mere 16 weeks. The code will have a lot of shortcomings. Tech companies drive innovation. They have to invest aggressively in R&D.
He repeats 'initial version' multiple times without mentioning what really differentiates an MVP vs a global, scaled product
But I thought programming was just banging on a keyboard 😮
Shallow research results in this kind of shallow analysis
This needs to be on top of the comments..
@@TLM860 The tech companies can make methapsyhical technocratic apocalypse after our biological death,that's why NOW all employers FIRST GO AWAY FROM ALL THE TECH NEGATIVE COMPANIES...😂😂😂😂🎉😂🎉😂🎉🎉😂❤😂😂🎉😂❤
*They also hire to dry up the talent pool, so talented people don't work for competitors
Calculating how many hours it takes to build an MVP is extremely reductive. To stay in business, it's not enough simply to exist by providing the bare minimum, you need to consistently beat the next best alternative. That takes thousands of engineers to 1) constantly innovate, and 2) optimize/fix millions of edge cases in perpetuity. When falling behind even a tiny bit could risk losing billions of dollars, you will spend billions to prevent that. (also Twitter is doing terribly now and no CEO of a public company would want to model themselves after Twitter)
Agree
Completely agree, it’s not enough to just maintain the initial mvp, but to constantly improve & innovate.
What makes you say that twitter is doing terribly?
@@technoai-01 they are 4 months from possible bankruptcy and their internal valuation is half of its sale price
Everybody knew that musk had overpriced twitter. Even he knew it that is why he was wanting to back off...
And I have read the "months away from bankruptcy" so many times that I definetly do not believe it at all...
It takes about 4 or 5 people to support a team of software engineers, whether there are 1 or 10 software engineers on the team. It comes down to the customer (internal or external) not knowing what it wants, and 4 to 5 people pushing back and preventing the software engineers from spending an infinite amount of time on every project, no matter how small. The overhead you see actually saves the company money. Software engineers are trained to be able to deliver anything the customer asks for, and this is never what you want. Hence, budget, designs, goals, planning, giving the engineers time to do engineering.
This dont just apply to technology companies, it apply to everything in life. According to price’s law, “half of the literature on a subject will be contributed by the square root of the total number of authors publishing in that area”.
That explains why companies becomes bloated as they get bigger because that adds up real quick like it’s even when there is 4 people but quickly becomes 1/8th of the entire team at 16 and so on
@@simonpetrikov3992 The tech companies can make methapsyhical technocratic apocalypse after our biological death,that's why NOW all employers FIRST GO AWAY FROM ALL THE TECH NEGATIVE COMPANIES...😂😂😂😂🎉😂🎉😂🎉🎉😂❤😂😂🎉😂❤
@@Aquarius285 what?
This video provides a massively naïve point of view. Twitter is not running "perfectly fine" as you said, it has had numerous outages and employees are being overworked. Some core functions are being run by one person who has NO IDEA what they are doing, and any change they make can break everything, which has happened several times, see the API, broken feed and other stuff. The entire reason its able to run as well with so few people is because of those 7500 staff who built it, and without the same headcount it's slowly falling apart. Its like saying why do we have authors when all the books we need already exist? Furthermore, tech is not just about programming. You need devops, dbas, and other staff to actually support millions or billions of users. Im not saying there isn't waste or over hiring, ofc there is, just like in every massive company with many moving parts, but this has nothing to do with the tech sector and you know it. Finally, many companies have people work on projects that don't see the light of day, it's called R&D. It's how React, Angular, Google Maps, and other projects were able to be produced. If engineers focused on fixing tickets and working on the core product, you'll die just like IBM. Thanks
Even if Twitter overhired, you don't just lay off 80% of your workforce almost overnight and expect everything to go smoothly. And eve if you only laid off the "useless" people (in practice, few are completely useless), you may find yourself with your most "useful" employees following the movement and quitting, maybe for the competitor their former teammates went to.
At least someone in the comments, is making sense. People don't understand the concept of MVP and don't understand how much effort is needed to scale up a MVP to this massively complicated system. Even the concept of "optimisation" is grossly underestimated. People don't understand the humongous effort to optimise a small subsystem and yet many such small optimisation combined, improves the entire system drastically.
Yes, IT industry over hired but there's also macroeconomic side to it too. But saying that these companies have workforce of 80-90% doing bullshit jobs, is simply a exaggeration.
Other issues: Twitter is not built on modern cloud stuff. It is a pile of legacy systems. You had better retain people that understand them or else hire people necessary to transition off of legacy. Second, in this day and age you are up against state sponsored actors with huge teams looking for flaws to exploit. You had better have a lot of people who understand your stuff and can proactively look for trouble, or else patch it quickly when you realize someone has gained access to your network. Remember Solar Winds? They didn't have any real security people and had huge piles of unmaintained legacy code.
Hey, the channel is called logically explained after all! Logic doesn't always equal truth!
Twitter is broken mainly because it launches untested random changes nearly every day, and not be quae it has too few employees to run and maintain it. Without the anarchy from the top, the remaining staff could maintain it even after the excessive layoffs. the API was broken with intent as well, to eliminate alternate front ends. Changes are being done on a whim and without any sign of a goal.
Idk if I can agree completely with the twitter section.
Replies don’t always show, it glitches out more often now. “For you” section and algorithm seems to need quite a bit of work and in terms of “Twitter blue”, the only changes he did was really put a blue check mark for everyone and make longer tweets (something that was already being made under the previous leadership)
this! twitter is so broken lately
You use Twitter? What are you? Old?
Not to forget that many very important people Quit. Like the ones that are looking out that they are following all regulations. This will lead to very big Problems in the Future.
Twitter is broken not because it has less employees. It’s broken because every two days they launch new untested features to the public! Sometimes they launch it to the public even before the beta version!!
Too many changes to twitter in short time is the main problem.
Directionally this video is right but context on the “when” is crucial. Worked at one of these places and in HR / hiring. 2020 hiring on is where leadership crossed the line big time. Prior to that, hiring made more sense. My team went from like 20+ to 60+ and was easily LESS effective than before. When leaders start wanting to hire “strategists” you know bullshit jobs have gotten out of hand. Also team switching didnt happen as much as people being hired to do one thing then given more jobs without increased pay.
When “Learn to code” turns into “Learn to be a plumber/electrician/farmer.”
You are so right. Jobs like you mentioned are least likely to be affected by AI.
Not only that but nowadays it's cheaper to hire a lawyer than a plumber. If you can even hire a plumber at all.
@@critical_always The tech companies can make methapsyhical technocratic apocalypse after our biological death,that's why NOW all employers FIRST GO AWAY FROM ALL THE TECH NEGATIVE COMPANIES...😂😂😂😂🎉😂🎉😂🎉🎉😂❤😂😂🎉😂❤
2023 = "Learn To Prompt" 🤖
The alternative is not to hire and one of these people will come up with a new idea that will be acquired by the giant for billions.
Hahaha, that’s a strat, but I guess the fear is that someone else will hire them instead
"...brute-force the creativity .."
Well put.
I liked that as well. Sums up the mentality.
Hmm sure the have X total employees. But something I believe is dead wrong in this video is the assumption that the laid off employees are all software engineers. The largest part of people effected (outside of twitter) were not engineer, but other things like sales, marketing, HR.
I also think some of these companies hire so many engineers because they want to control innovation. Imagine they hire people and are able to control or own those employee's ideas and innovations while they are employed at that company. Fresh ideas get left at those companies when that employee leaves or is laid-off. Less innovation competition and more harvesting of other people's ideas
I always remember that Vodafone was the biggest company in the world by market cap in 1990. Had the highest growth, extremely profitable and at the forefront of technology at the time. But very quickly just became standard tech and its share price reflected it had become almost a utility. This will happen to some of the leaders today.
Proves my life long point. Managers, HR departments and a raft of other "jobs" are just seat warmers with no useful function what so ever
If it's a small company then one person has to wear all of those hats. Any sizable company however needs all of those roles staffed with capable people.
I work for a large tech company as a software engineer and the middle managers issue is something with which I absolutely agree. There is very little oversight in my company which leads to a lot of started but never completed projects. Middle managers are simply trying to keep their own manager happy, and nobody ever comes around to check on the state of things. This can lead to situations where the overall company is over-hired, but a team like mine is understaffed. It is very difficult to get work done at my company due to a lack of accountability. This leads to many engineers pulling large salaries but not actually being able to do all that much useful work.
Over hire the best talent... then you can layoff the worst people (including older hires).
Makes total sense to me.
The problem is they pretty much saturated their markets now and so they're not going to have the same kind of growth they've been having but companies and investors don't like to hear that even if it's realistic and the company is still perfectly capable of making money and so they start cutting costs to make margins look better so it looks like they're growing
Infinite growth is stupid.
There are only a limited number of people(clients) in this world the big companies can extract from. Would be nice to see when the growth slows down again after cutting down the margins, and there is no way out, what would they do ?
@@rishirajsaikia1323 it simply reflects in the company valuation, investors want more growth or margins to be richer, if they can they sell or maintain to get dividends depending in the company 🤷♂️
One of the biggest reasons is that software and intellectual work actually gets more complicated, difficult and slower the more people you need. If a one-person team has 1x efficiency, in a two-person team, the efficiency per-person actually probably is 0.75x, not 1x, even though the net efficiency is 1.5x, bigger than 1x.
But I’d counter that with Brook’s law: adding more programmers makes a late project even later.
A lot of companies have bloat, fake work, and high levels of administrative tasks. If the organization has a lot of managers and/or a lot of layers, go ahead and assume that a lot of time is going to be spent informing those managers of what's going on. During an interview, I was asked how frequently I would have one-on-ones with my staff. I have never enjoyed one-on-ones when the work is repetitive and you're already constantly communicating with your team members. Since my manager requires a one-on-one with me each week and expects that I have one with each of my staff members, right there before even accepting the job or knowing what was needed, I lost 4-6 hours a week just on one-on-ones....not including all the additional meetings. So, yeah, you basically have to double the staff so that you can have a core group of people that meet and email all day, and then the other employees that actually do the work. It's mind-numbing.
I found this video because Uber just had a "Technical issue" that apparently overpaid drivers / overcharged customers and I wanted to see the latest news. Their software testing apparently didn't include their most important and critical operations of calculating and charging for fares. You need to take a closer look at what is going on with all these companies, because your ROI explanation isn't even close. Divide their publicly reported revenue by their number of paying customers, and try to figure out how in the world their average customer could be giving them that much money, especially when many of their primary products are free. Uber drivers are not even counted among all those employees you cite, and anyone that has dealt with "Support" knows they are basically non-existent. This is not limited to tech. Look into how many man-hours they say it takes to produce a pair of jeans, and prepare to be shocked!
Lmao these companies are literally suffering from success. 😂😂😂
Hahaha
Hey man i usually love your videos but your opinion on how a few engineers can develop airbnb facebook and twitter is a little nonsensical. As the user base grows these systems become increasingly complex and unmaintainable. Anybody can create a twitter or facebook or airbnb clone. But will they be able to maintain the system ensuring it functions 24/7 for billions of users? No. Look at how long twitter is taking to develop a simple button like the edit button which is not even out yet. An edit is very simple to build if its an app for just 2 or 3 users. But it requires tremendous amount of engineering to work seamlessly for millions of users.
Completely agree. Was just trying to emphasize how much they had over hired. Should have clarified better. My bad.
@@LogicallyAnswered don’t beat yourself up over it. A better comparison might have been to see how many folks they had when they passed 1% of the user base, or maybe 10%.
what do you mean by maintain. The infrastructure is architected to scale as the user base grows. You think engineers are just there turning buttons every seconds. Can you describe the tremendous engineering required to replace an original tweet with its edited version
I hope some of them tech companies get better and great video man :]
I hate the buisness and marketing team
Always manage to make a good product worse
They just care about money and nothing else. Look at the downfall of video game companies. You have all these suits running the game and made microtransactions and DLCs. Greed corrupts.
@@jonplaud that's any publicly traded company. Shareholders come first. Customer second only if it also helps shareholders.
Private company: Consistent cashflow forever is great!
Public company: Consistent cashflow is ZERO GROWTH so is terrible! 😬
It is unfortunate really that the product team works on the product and the marketing/business/client-facing folks get a big share of the pie simply because the marketing team promoted what the product team created.
Those who actually do quality work are always exploited by those who know nothing about the actual work. Oh yes, they can exploit. So they become managers and earn handsomely while the real workers are paid less. Contractors earn more than laborers in corporate becomes: managers earn more than engineers.
One day these tech companies would develop even much advanced AI and then fire all the engineers who created that AI. It will happen sooner or later. 😂
HR-GPT
It’s more complex than that
If you throw enough darts you eventually get a bullseye but when you don’t throw you lose your seat as a player.
You only need one developer to create one app like AirBnB? Total non-sense, what about android phones? And safari compatibility? And unit tests? And security? And maintenance? Total garbage...
Mentioned that right after haha
I was JUST talking the other day about this phenomenon with friends.
Basically, they get ad revenue, and their services rely on people consuming their content. The problem is… because of collapsing birthrates, and stagnating wages (relative to inflation), the middle class is becoming the lower class, and simply cannot afford to waste time like they used to (though to be fair, we still waste plenty of time).
Moonshot projects are falling in value, but they now desperately propping up more consumer goods in hopes they can generate investments (that will never be paid).
As a software engineer, this concerns me. I had to move to the city for work recently, but also for keeping options open. I do lowkey fear what could happen when the economic bubble bursts.
If the bubble bursts in anyway your screwed
@@simonpetrikov3992 And here I thought it I was the pessimistic one lol.
Honestly of all things, finances aren’t my main concern in life. I’m an able-bodied young man with ample work experience and relatively little debt. I will find a job and make a living as best I can. Also got friends (hopefully a wife in the coming decade) to cooperate with, and live a minimalist conservative lifestyle. If I lose my job, it will be rough, but I will manage.
Watch Monsieur Z’s video on “How to survive the Great Depression”. I’m most of the way to meeting the criteria.
You're not wrong that it doesn't take "a lot" of developers to "keep the lights on" for already available apps and features. However, these are growth companies, and they are constantly making new bets. NO growth company wants to rest on their laurels and see their growth based stock valuation get dinged when investors realize it is now a stable, cash cow company
Yes, and the problem is also that you can't just milk a cash cow forever, since there are always competitors, and if they make their products better all the time, and you don't, at some point most or all of the other offerings will be better than yours, so you will lose your market share, so you have to always invest in R&D just to keep your market share, and if you want to increase it in a meaningful way, you have to invest much more into R&D. A good example are our German car manufacturers, they have to keep working hard to keep their market share, since for example Tesla and a ton of Chinese and Japanese car manufacturers are also building nice cars, so they have to be top of the line to still earn money. If they would not invest in R&D, nobody would buy their cars anymore after a few years, especially now where everyone is transitioning to electric cars, with smartphone integration and everything.
Nice summary, I always wondered what these tech companies did with all the employees. Its tough in the automotive industry to justify hiring additional people and we actually build car parts. They just crunch code. thanks!
"most coding projects are actually pretty straightforward"
Guarantee this guy has never built commercial software
I'm sure other comments have brought this up, and you've likely considered it as well yourself, but from a consumer standpoint it's also desirable for these companies to have more employees than the bare minimum to keep their services operational. New features, UI changes, and platform updates keep things from stagnating or going out of date (case in point: Craigslist, or the USA's rail infrastructure). Sure, cutting costs and having a minimized workforce will please investors in the short term, but it all but eliminates the possibility for growth and product improvement.
That said, there is obviously a balance, and I think you are correct that tech companies lean more into the growth aspect than other industries.
I don't actually think this is due to negligence or naivety of these younger companies as the video implies though, but rather due to the push-pull of economics - specifically, available capital investment. Tech companies and startups tend to attach a lot more investors than traditional material industries, and thus can take riskier bets with hiring numbers, moonshots, etc. If we poured the same sort of investment into some other sector, we'd probably end up with massive over-hiring there as well.
At some point you chase diminishing returns with increasing amount of resources. The first 100$ need one employee, the next 75$ two employees, the next 50$ three employees, the next 25$ four employees, and on … until an employee costs more than the money returned.
No I disagree with twitter it recently had had way more problems and it's new features are mostly failures
It will always be easier to build from zero, than support and extend anything with existing technical debt and dependencies. This is not a tech company problem, but the natural lifecycle of sprawling software systems. No brand name makes a company immune to this.
The only good thing about all these engineers getting fired is that some of them will create new apps and sites that has the possibility of creating more jobs and more interesting products that can have a chan reaction effect of more tech, jobs and products. And without the crapping element of the woke and authoritarian element to them. I hope this does happen.
History in tech dictates that if you don’t innovate you die. These companies hire engineers to develop new products or expand their current product, not just to maintain the current product. Also, software needs constant upgrading to keep up with the changes in operating systems or for security reasons.
Then you also need people to find bugs before the public does, or repair bugs that the public does find.
Idk if I agree with that twitter portion lol. I went to it and that shit was glitching the house on the comments 😭
That’s not good haha
man glad I came across this channel
Hahaha, glad you stuck around!
@@LogicallyAnswered A good creator deserves a good base that follows them, I am one of yours
Other reasons; 1) employees are tax deductible 2) employing too many of the best developers, architects and engineers is like Premier league clubs paying vast amounts for quality soccer players, yet keeping them on the bench. It prevents other large competitors and startups benefitting from their talents and pays them enough to get comfortable with suckling on the corporate tech-tit and not chasing after higher success by starting their own rival companies. This strategy maintains their near-monopoly and pacifies potential competitors.
Thanks 😊 for the great content. Now I know.
Who gives a dam about how many employees they have. The intro Said "companies are laying off employees in order to PREPARE FOR THE COMING RECESSION." That's what needs to be emphasized
You speak of twitter as though it’s been working flawlessly since the takeover. They’ve had an incredible amount of set backs, bugs, tech issues, etc. They even had to beg engineers to come back after they fired too many.
it sounds like a really cool idea in the beginning, so many of these people being able to get job security, but with all these mass layoffs now its going to be 10s of 1000s of people who want a job in a field that is overbooked and it could be very difficult to find new work
Hopefully those people who remained aren't going to be replaced by A.I..
You don’t need to worry about that ai isn’t that powerful, people are always scared of new things. An example of that is streetlights when they where first introduced people protested because god wouldn’t make the world go dark half the time for nothing right?
Wildly off with your comments about the software engineering necessary to build apps. MVPs are vastly different from scaled up software needing to handle 1000s of daily users.
I'm having issues accessing my twitter account and twitter support seems to be completely automated and I'm being sent around in circles. Fill out account access form > reply to email with more details > ticket closed due to inactivity > start new support ticket.
Has Twitter support always been this bad or is it a recent thing?
It’s always been that bad.
@@needlesandsonics5819thanks. That's good to know.
Since when is Waymo behind Tesla? Isnt Tesla still stuck at level 2 while Waymo has actual robotaxis running in some parts of the country...
Do you not use twitter?
It's been literal hell since he purged it, for a month I couldn't even reply without the app crashing, a lot of ppl complained
Something that was not mentioned about how big these companies are include the reasons why they are the best: employee morale. Sure an engineering team can maintain, and a hiring manager could hire, but there are teams making sure they are happy and not overwhelmed. You also have sales, support, finance, legal, etc. All really important jobs that are non tech. Yes these companies did over hire, but it doesn't mean those other roles didn't lead to success and happy employees.
A lot of unproductive staff that are more interested playing a role in the culture war and imposing their political leanings on user and restricting divergent opinions rather than actually doing their jobs. Keep you teams small and maximize hiring with multi-talented goal driven individuals to maintain agility in the market.
The download bubble didn't cost Google anything to develop. It was developed by a random guy in an afternoon because he liked it better that way. All Google did was accept it into the upstream open source Chromium browser. Maybe a Google intern spent a few hours bug testing it and after a few years of it being optional spent half an hour figuring out which config lines to change to make it default.
I think this just highlights that you can't just throw money and bodies at a problem to force a solution. If there is no plan, it's a waste of everyone's resources.
Oh and also that the concept of infinite growth is trash.
they're also heavily competitive with each other. if an engineer is really skilled, one of those tech firms may hire them even if they don't have any real work to give them just to keep them from the competition.
It just makes them looks stupid in the end. If that had the ability to be embarrassed they would be but these companies have no shame.
Great video! Someone told me about the first 1min of your video for their PPC spending habits. Looks like companies truly overspent
I find it always interesting ppl include apple into software companies, they are both hardware and software. Really great video
Good point, Warren Buffet even calls them consumer electronics company.
From an MBTI perspective, the "over-hiring" issue faced by numerous large tech companies seems somewhat predictable. As these are organizations with predominantly NT or intellectual corporate atmospheres, current personnel logistics are less likely to be given the necessary level of priority (this is more likely to occur with types that have NT as their middle two letters). Instead, the focus on future potential irrespective of present-day hiring needs has resulted in the erosion of capital to the point where such large rounds of layoffs are necessary. More of an emphasis on logistics (as more likely to be provided by types with an xSxJ designation such as ESTJ) rather than potential would likely help to improve their bottom lines in terms of more sensible hiring practices.
Note: tech companies certainly aren't the only ones affected by the issues discussed in this video, though they may be more prone to being susceptible to them.
I wouldn’t call Twitter very functional. It’s falling apart by the seams.
Is this the best channel of all times?!?!?!
I thought the title said "Filthy Rich Tech Companies Are Entertaining Chris Mode" and was so confused, like who is Chris Mode and why are right tech companies trying to entertain him 🤣
Great video as always, I wonder how would people react if Social Media started to go into administration?
"If"??? You mean when....
Twitter is not a benchmark of excellence in tech space. The current trimming is mainly due to 2 reasons -1. Late 2020, 2021 and early 2022 hiring went on overdrive due to all macro-economical signals. This confusion was gone after pandemic and things mean reverted.
2. AI/ML is more and more taking control of areas like customer support, SW testing and many engineering & business processes.
Once this haircut is done, the new hiring will slow down for next 2 to 3 years.
My guy Twitter went from being worth $44 billion to being worth $20 billion in a few months. I'd hardly call that "doing just fine with 80% of the company laid off".
Well, by "doing ok" the author clearly stated he was referring to running the Twitter platform technology. You've taken one phrase of a paragraph and mistakenly expanded what the phrase referred to way past it's intended use in the paragraph.
Initial MVPs and consistently working large scale distributed systems are widely different. 16 weeks to build an airBnB clone? that will fall over at the first mass influx of users. The security implications of only having a handful of engineers for any given project is insane. Google has engineers dedicated to doing nothing but vetting the open source foundations on which much of their proprietary technology is built. Just to try and get ahead of the next horrendous 0-day exploit. Security is a never ending arms race and the bar for staving off exploits continues to climb as the bar for launching exploits is in some cases going down. You now have hacker groups that do nothing but build nation-level cyber attack tools for other groups to pay to use. The second largest Chrome team is JUST security.
Do these companies hire more people than they need? yes. Is it as drastically over bloated as 70-80%, not by a long shot.
One of the biggest drivers for tech companies is the need to innovate. It may not make a lot of sense to you but these organisations need to continue innovating and chasing disruptive ideas to create new products for their customers and widen their market share. They also need to keep current products up to modern standards. Think of companies that failed to do this…Nokia, blackberry. Amazon was just an e-commerce platform now they have Alexa and AWS as profitable products. If companies simply stick to what’s working for them and never try to explore new markets or improve their offerings they’re seriously vulnerable to being disrupted by new entrants in the market. Are they still overhiring? Yes. But it’s not as simplistic as this video has made it out to be.
'We can hire the best people and decide what work they should do later' typical of every MNC. Oh yes, and developers have to sit idle till they decide...
4:30 But that's building with the power of hindsight or building simpler, initial versions...
I think they all want to get “to big to fail” basically we employ so many people that the government can’t allow our company to fail because it would have a massive impact on the world economy. That’s my theory
It does come as an excuse for them I think...
Since the last economic crisis in 2005, there has been lots of money printing and interest rate cuts by central banks in developed nations. I am no economist, but doesn’t that mean that more money was available to these companies, so they were able to spend it inefficiently, doing share bybacks and other methods of creative accounting to pump up their stock prices? Now that central banks are raising rates, credit is harder to get and AI models are doing what many of those laid off humans used to do. it’s a leaner and meaner world for everybody and I think the pain has just begun.
Writing code from scratch isn't necessarily more challenging than learning to maintain an existing codebase.
Software engineers still have a negative employment rate. Everyone who was laid off were already looking for other jobs rather than doing the jobs they were hired for. Now that I think about it, maybe the real reason for overhiring was to prevent competitors from getting the talent.Since more hiring supports an image of company growth, the expense is already justified to growth investors, who would just encourage it.
Great video as usual bro...👍👍
Thanks bro!
I think they are trying to find someone among the lot of humanity that comes to their doors to make a leap of faith possible. If they have extra, they will have to use it but it's very inefficient.
Like many have already mentioned, this video is very misleading with a bunch of stuff (some valid points too though). Now I'm questioning all the info from other videos of yours that I assumed was correct. Lol
I'm a developer at a smaller startup but it takes a ton of work to build something. Not 16 weeks to build something that works at scale.
Oh, and fixing bugs and adding features that integrate with the product is much harder than building something from scratch - much much harder
I think your analysis on work done in the development space is very narrow. As if you think every software engineer types three lines of code, sends an email or two a day, and then plays on the company xbox or something. It’s really not like that at all, and to be naive to say everything is always so simple and straight forward is crazy.
Your comparison sounds similar to “Being an architect isn’t that hard, tell them you want a sky scraper that has all glass windows, is lopsided, and is accessible for handicap people.”
I would recommend you do more research or stay in your lane.
Their over hiring then mass firing practice might actually be good for the economy and the labour force in the long term (obv. not short term).
Those highly skilled tech workers will take the experience, knowledge and skills they developed in big tech and eventually enrich other smaller companies and certain entrepreneurial ecosystems.
Meantime hundreds and thousands of young engineers from Punjab and Haryana are clawing their way to get a job in Silicon valley. If only they knew that this isnt the "american dream" they aspire to achieve.
Textbook American MBA classic. Your power and compensation are measured by budget and headcounts, and you climb up the ladder by grabbing and grabbing, until everything collapsed
I'm glad I'm retired. The tech industry has become a giant rat race for employees. Just a few years ago, there was an extreme shortage of engineers. Now, California is losing population and its reputation for growth and innovation. Google has deprecated or eliminated more formerly free programs and services than I can count.
I guess, same cannot be said for enterprise focused companies like microsoft,sap. Because enterprise softwares like crm, erp, content management needs a lot of coding/spending but cannot generate revenue like social media/ecommerce platforms.
Have you heard of support? A lot of effort and FTEs are spent to support your customers… that is, if you want keep them.
My friend was wondering why he got hired by Google straight out of college… now I can tell him he was unnecessarily hired
I guess they have a lot of research projects going on in the background
I think overhighering is unethical because it takes workers away from tasks which could lead to better advantages for society. If these tech companies keep doing it, potential new startups that would actually make mootshots happen can't get staffed to do it.
Apple does have a large number of employees; however, many of these employees work in their retail stores so it’s not accurate to compare the large number of Apple employees to Twitter or Meta.
Super important to also note that most of these companies rely HEAVILY on outsourced labor to overseas locations where they can pay less and offer terrible conditions. Microsoft for example, is heavily reliant on outsourcing to India where they can pay as little as $6/hour. Meanwhile the CEO gave himself a 10% pay bump a couple months back.
Christmas came early!! That’s for another solid video brother!! Have a great weekend!!
more like christmas came 4 months late lol
Thank you as always Daniel, you too!
man your channel is soooo underrated, i had this questions in my mind but was lazy to research or go into it, but you my friend spoon fed me the whole situation 🔥
For real. This is my new fave channel
@@musicloveranthony The tech companies can make methapsyhical technocratic apocalypse after our biological death,that's why NOW all employers FIRST GO AWAY FROM ALL THE TECH NEGATIVE COMPANIES...😂😂😂😂🎉😂🎉😂🎉🎉😂❤😂😂🎉😂❤
They actually "need" even more employees. These companies actually outsource some of the work like a remote backup data center or other tech infrastructure needs. Companies like Meta and Google (RUclips) have humans screening user-uploaded videos for harmful content in parallel with AI. Many of these jobs are currently outsourced to developing countries. But many important functions are also still currently unfulfilled -- content checkers for all the different languages that users can use on the social media or content-sharing platforms, enough fact-checkers, enough checkers to ensure the quality of an Uber car/driver or Airbnb location. Also, these companies need to do stuff to stay AHEAD of the game and continually roll out new features. And yet there'd still be startup apps that come up with features ahead of these bigger companies and then these tech giants need to have developers ready to scramble with an imitation. Then they also have ongoing development/ventures that may lead nowhere like Meta-verse or all the Google products that have been discontinued throughout the years.
It's not as much that they employ seemingly too many devs. For me, it's actually more like "what they F are these guys doing?" with many of them not being as productive or innovative as one would expect them to be.
They are writing fancy CI infrastructor and thousands of tests and then constantly fixing all that stuff
Zero interest rate policy from the Fed for 10+ years fueled those tech firms, startups into senseless hiring and non stop growth mode. The party is now over, real profit making firms will rise to the top again to the dismay of ESG investors (energy, mining, tobacco, staple, and other boring brick and mortar…)
Another reason is taxes, if they hire, they can hit a home run and expand their business significantly, if they don’t, they pay more of their revenue in taxes which they won’t see any benefit for
Worked in enterprises for years, 20% are actually doing the job the rest a LARPing.
very interesting video as always Hari, thank you!
Airbnb can't be cloned in 16 weeks if you're talking about scaling it to 100 million users. The 16 weeks app would break down into a million pieces.
I am a software engineer, so I'm confident when I say it.
Excellent...
Meta's Zuckerberg admitted to funneling & losing a colossal $10B into the abysmal Metaverse. And then they layed off 21,000 employees to balance his mistake.
$10B ÷ 21.000(unsuspecting people)
= $476,190. That's enough salary to roughly pay those employees for 3 more years of employment...each. ugh
Thanks for sharing your research,
James