Amazon, Netflix, Meta: Why Big Tech Is Facing Massive Layoffs | WSJ
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- Опубліковано 5 чер 2024
- Tech companies like Amazon, Netflix, Meta, Twitter and Lyft saw exceptional growth during the pandemic in both revenue and employee numbers, but now, as the broader labor market is booming, these companies are laying off thousands.
WSJ explains the macro - and micro - reasons for Silicon Valley’s massive layoffs.
Illustration: Adele Morgan
0:00 Tech company layoffs
0:36 Covid’s effect
1:34 Employee hiring spree
2:18 Post-covid
3:20 Layoff figures
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#Layoffs #BigTech #WSJ
I’m 46 years old, and I’ve been around in Silicon Valley for almost 15 years working for many tech companies and startups. Here’s one piece of unsolicited advice for you: the company you work for is not your family, they will let you go if they have to for any reason or no reason at all. It doesn’t matter if you’re pregnant, with cancer, 1 month in the job or 10 years veteran. Job security is a myth. Corporations run on greed and they want to maximize revenue and profits. Don’t be naive. Be selfish with your life, time is the only thing you can’t get back once is gone. And please, always negotiate your salary, ALWAYS.
Nice advice for anyone in general. Godspeed. 😊
🔒✏️
Or think about moving to europe. where job security is felt as a right rather than unattainable fantasy in the US. Even better, campaign for legislation to ensure this in the US.
Americans can choose to have this. Employess should not be hired & dumped on a whim to appease the fickle stock market. They are a long term investment and people. Excessive growth be dammed. Stable, smaller growth are the key to a more equitable population and only policy can enforce it.
@@Eoin-B Agreed with you, but tell that to the hawks of Wall Street and they will call you a communist. Every I'll act is justified with one word. Capitalism
Very well said
When they hired massively during the pandemic, they knew the workers are disposable and that they will be laid off at the end of the pandemic.
Very sorry? They knew what they were doing
So?
It happens every year at Xmas - the Pandemic was just a 2-Year Xmas / Free Money Spending Spree
i'm sure they didnt hope they have to
They've paid these "disposable" workers a lot of money.
You may not have noticed inflation in years past, But 8%+ inflation over the past year should've taught you that the cost of living increases every year (home prices, rent, groceries, plane tickets, home repairs, etc.) Only way to beat inflation is by investing your money
In April alone, credit card debt went up 20% while rates have doubled in a year. Inflation is so high that consumers are literally taking debt for basic life necessities. Collapse is near.
Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire.
@@lucianoboccedi How can i get started when it comes to investing and passive income?
@@kaylawood9053 Personally I work with ‘’LUCY HOLDEN COYLE’ a pro who sets asset allocation that fits my tolerance and risk capacity, invstment horizon, present and future goals. My portfolio have accrued gains of about $130k
Thank you. i just found her webpage and left her a message.
Sounds to me like the "great resignation" was just a ploy for tech companies to go on hiring sprees to meet short term demand then turn around and fire those new hires as soon as demand subsided.
Tech companies hired new junior developers and fired the senior developers who helped build the companies. The CEO's looked good and are going to cut out before the effects occur. Zuck should get out while he's on the top and finish strong. Look what happened to Dorsey. He finished strong, but he had to bail out before a wannabe corporate raider like Musk came along.
@@rickybobby7276 . Rumor is that Zuck is in fact resigning.
Thank you for posting this to UA-cam. After paying hundreds for my WSJ subscription, it is ridiculous to force subscribers to watch ads on the WSJ site.
Why in gods name would you pay for a subscription
@@RumblesBettr it was free for me while at college for a year
But then i forgot to end it and got charged 🙄
@@RumblesBettr true, if you know where to find them (there are certain extensions) you can in fact access paywalled content on websites
I have Netflix and I'm just about tired of it. Such. A waste. Of time. I got off Facebook back in 2016, only reason I have it still is for Messenger with family, and I'm not really sure I want or need messenger at this point
@@RumblesBettr ... So you don't get ads?
Make me pay AND have ads and I'll go elsewhere. Twitch is quick to remind me why I left it, no amount of subscription and prime will protect you from pre-roll, midroll, roll, post-roll and afterroll ads
Love the WSJ "Analyst". She looks to be about 16 years old and being interviewed from her bedroom. Thanks, WSJ for your expertise.
Exactly - I kept waiting for her to say "Like, Oh my god!"...and every other statement was said like a question?
Why would companies think the boom growth after the pandemic would just magically continue? What could of that rationale have even been?
The same reason everyone thinks the stock market or crypto only goes up.
@@Viviko umm thinking people would keep taking boosters and want to stay inside following the same loop of covid, death, war, and birthday announcements! meanwhile order everything online to create more income for some for a given period of time. so, in one sense it got a big chunk of people to move around who haven't and then a lot of those that have moved around a lot a time to chill. alot of money was made over covid you can believe that!
they are soo out of touch with reality
I can see the board meeting at a place like Netflix:
January 2021 - so, everyone, we had a really great year. With people all over the world in lockdown, we saw unprecedented growth in our subscriptions and usage. We were no doubt one of the 'winners' of the unfortunate pandemic. With people not able to seek entertainment outside their home, people used our services to fill their time. Now, as we see travel and local restrictions loosening, we should expect an increased competition for our customer's time and attention. The world is opening up, and we will once again have to compete with movie theaters, bars, restaurants every other form of entertainment that was closed down during the pandemic.
COMPANY LEADERS: That's a great overview, thank you! Based on that outlook, let's plan to raise prices, introduce no new features, and with that strategy, I think we can expect the same growth we've had during the pandemic.
Probably not even that, when your job is maximizing profits it just makes sense to hold onto the booming business model until they're no longer profitable anymore. Laying off employees is just cutting costs on paper, an utterly dehumanizing and cruel methodology.
I've been laid off 3 times from 3 different company's. All tech company's. It doesn't matter where your at. It can happen to anyone at any time. Just remember you are replaceable.
When I was thirteen years old, my father was in a car wreck, and we lived in near-poverty for a couple years. I learned then that it is smart to save money, to consider the possibility of disaster in life. Don't obsess, but don't spend every dollar you earn, either. No matter how smart, good-looking or honest you are, nobody guarantees you a job.
Black swan events teaches you about life more than an entire life's worth sometimes.
I hope the whole family is doing much better these days.
4 months ago there was a trend on TikTok where people will talk or show how easy their tech job was. Saying it was pretty much just eating for free, sending 3 emails and wonder around the building on a scooter. My point is… the market always correct itself to what is normal. Even when anomalies can last a long time, it’s expected from a 140k job to be more than 2 zoom meeting and a couple emails per day.
I’ve been in tech all my career, I don’t think those were representative at all.
The majority of tech companies, tech workers, are in far smaller outfits. Definitely solid, well-paying middle class jobs - but not these kind of insanely wasteful Bay Area tech company jobs.
If anything, I’m hoping some of the talent that was unnecessarily bunched/wasted at the ‘top’ now filters down to other small and mid sized companies, or entirely new companies, to make better use of their talents.
@@glassmuxxic Great Idea: Making better use of talents. Thanks for sharing.
Majority of those tik toks were representatives of the company to attract new talent. It wasn’t exactly an accurate representation.
Those people you see on tiktok don't represent even 0.001% of the tech workers elsewhere.
there is even overemployment trend right now. I dont even know how true it is because it sounds too good to be true.
I worked for a tech start-up... Upper Management would get annoyed that work wasn't going fast enough, so they would just hire more and more people.
But the problem wasn't lack of employees, the problem was lack of Management. Eventually we had literally dozens of people working there and nobody else had any clue what they even did all day. Rather then try to figure out why work wasn't moving more quickly... they would literally just hire more people.
The most inept management team I'd ever seen.
Sounds like a typical UPS hub lol
Nailed it; I still work (for now) at one of the tech companies mentioned - this was what I caught onto pretty quickly over the pandemic; I tried to raise it (as we were encouraged to do so…) and got all the way up to top Exec before they found a loophole and forced me on leave to shut me up. All of my colleagues / co-workers were part of their mass firing (that loophole / leave ultimately sparing me…) but as you said - the cuts weren’t strategic, but made to fix a self-created problem, the true problem with Ops > Leadership (including Executive) still persists and is why it’s ultimately a sinking ship. Leadership hates change, even progressive ones, if there’s a threat to their wallets and systems, regardless of how broken and singularly beneficial they may be. Time to get out of tech!
exactly the same here. I heard news about downsizing from a colleague and next day half of the employees are not in here.
@@Brandon-bc5um Dying😂
That’s typical companies big or small.
Did a single CEO have their pay dropped because they “made a mistake”?
@gjaegreag because every time business is good, they seem to get a massive bonus. Shouldn't be having their cake and eating it too.
@gjaegreag CEO is an employee too
@gjaegreag if they're making an awful big mistake, maybe they should be let go. sounds like they suck at their jobs
they got a raise actually
@gjaegreag - Why should ANY other staff member salary/pay decrease? Your statement is ignorant. By your logic, anytime someone from your job gets fired or let go because they're no longer needed, you should should get a cut in your salary. If anything, it makes more sense to give remaining employees a raise, as they will now likely have more on their plates and have to take on a portion of the day to day tasks that would usually be delegated to the former employees.
Netflix raised prices and turned a lot of customer's off with the increase. Especially during these hard economic times.
This explains soooo much. The constant push/pull stop start of my tech company during the pandemic is now that much clearer.
Any of the C suite people take a significant pay cut or smaller bonus to help support the growth of the company?
Lolololol good one
The C suite at all of those companies are hired talent. They didn't help build the business from the ground up and therefore have no incentive to sacrifice personal gain for the good of the business. They are only there to make money and increase numbers.
Disney fired their CEO.
My CEO forfeited his salary for almost a year to keep everyone on payroll. Nobody lost their job during the pandemic. CEO is retiring soon, he will be missed.
It all depends on their stock price too. Yeah they also let CEO go too
Up yours, big tech. We'll see who cancels who.
Tech companies bloated themselves up to intentionally drop loads of top tier tech talent onto the job market at the same time and thereby permanently lower wages industry-wide. Change my mind.
On the contrary, fascinating idea.
''change my mind'' lol you are so cringe
I hope so because when they begin to re open those roles the people left will get pushed to the top and I’d be one of em so I’m okay with that
@clot shots yea 12000 dead woods from google right ?
@clot shots lol Record profits record layoffs. Looks like that’s what they’re doing chief laying off people that make the money😂😂
I am 45 years old. Just layed off from Meta. Over 30,000 workers are getting canned. I have to sell our house here in the Bay Area. We're going to see a massive housing crash. I feel sorry for anyone that's purchased in the last few years.
30k? Wow. I feel for you.
This was inevitable. The fact that blue collar natives of this area saw it coming and some of the highest educated people in the world didn't, is stunning. I hear tech companies are looking to destroy Texas next. That might be your new home. A housing crash here is needed, but I doubt it will happen.
Rich folks pluezze! Please count alm y'all blessings! Not all our problems! AMEN 🙏
Yes I all. God Bless y'all 🙏, yes sir! I just sick n tired of Hearing about all the rich folks. Put my own dam self as a single mama of autism, through some medical academy tryin to git out if poverty! It's a m.f. y'all. Know that. Believe me, always grateful! I gotta check myself on that too,k. To count All my blessings! Not my problems, it's real tough out here sir. I'm over 50. Both mom n grandmom. All I feel I can do is stay in prayer 🙏, ya know, yet I do not complain, not usually these days, after losing my pops through the pandemic xx. Rip pops August 24,2021Xxxx 💜
On top a things sir. Ain't never seen a penny in my entire life past ten k, I may b nada to y'all. Guess what. I am a child of the Most High! Who gives a care about the richest to poorest! Let's see whose the Host with the Most! Who care! Know, kind sir, that God has got your back! Fosho! P.S. I meant that, from a Texas ol gal, straight out the trailer xx
Thanks for the input from your expert college student correspondants once again WSJ!
😂
She looked and sounded like a high schooler. The voice - just terrible. I had to stop watching.
I thought the same thing! 😂
I appreciate your honest reporting. I admire you a lot for educating everyone. It all depends on the information and method applied. I've seen people earn significant 7-figure profits in sinking markets and pull it off just as easily in bull markets. There is no doubt that the crash/recession is making someone wealthy.
It is more difficult to create a solid investing portfolio, thus I advise hiring an investment advisor. You can then receive plans created to address your particular long- and short-term goals and financial aspirations.
@@sheliaswelttk2535 The uncertainties accompanying this present market is more reasons I have my daily investment decisions guided by an investment advisor seeing that their entire skillset is built around going long and short at the same time, both employing profit-oriented strategy and laying off risk as a hedge against the inevitable downtrends, coupled with the exclusive information/analysis, it's quite impossible not to outperform. Netted over $550k in return on investment, since using an advisor for about 2years.
@@davidnewbury1721 I will need such tutelage. how is this going to work?
@@gabriellewilson5625 The advisor I employ is very well-known; you may have heard of her before. Her name is "Tracy Helene Aalvik," and you can look her up online by doing a search.
@@davidnewbury1721 Thanks for the advice. The location of your counsel was simple. I did my research on her before we agreed on a session. Considering her resume, she appears knowledgeable.
I was lucky and never was in a layoff when I was young and living paycheck to paycheck. When you are just starting out it is difficult to pay off student loans and save. When I did get fired in 2008 it was a wakeup call since I was months from living in my car. When I got back into positive cash flow I started saving (being single again with no kids helps) and now I have runway. I tell people to save because no cash flow can happen and it sucks.
The fed are selling these stocks caused the failed miserably in Afghanistan. They cant pumped the us tech stocks anymore with printed money. Now they can only sell. It's the epic fall of empire. Rekt usa-nato
Good advice!
No don't save your money, invest in a side hustle and slowly grow your side hustle until you no longer depend on you 9-5.
@@alexnice2221 Yes you are right if you can make that happen.
I absolutely agree! I’m saving money now because I don’t trust any company do right by it’s employees.
"we are doing this (layoffs) now so we never have to do it again". Right!🤣🙄
That’s what my ex said to me. 😢
Old news, businesses and governments trying to get rid of the business cycle.
Companies didn't think growth would happen forever. They knew this was coming if they said otherwise they were lying to you (what a shock!)
they aren't facing massive layoffs, they are choosing so lol
These companies have access to the most data, the highest computing power, the best algorithms, and the most talented data analysts. If they’re battening down the hatches, then everyone should take note of the near-term storm coming.
You overestimate just how intelligent the people manning the helm are; how much value the "best" algorithms can extract from the "most data", and the amount of sense these "talented data analysts" can make of what comes out of the other end. You're better off studying market psychology than paying attention to analytics if you want to understand what's happening.
@@EzBz982 that’s all fair. Data, analyses, and humans all have some limitations, and politics are very real and obstructive in all companies, but these companies still have the relative best, by a large margin. And the market psychology is likely taken into account, via unstructured data, into the analyses and models. There’s also just the possibility that they’re all colluding to reduce labor cost or turn market trend towards maximum profitability instead of slow, steady eps gains.
So their executives can get their huge bonuses. This is how corporate America works.
I mean people complain working at Amazon is bad on your body so hey if you are dying to work there go right ahead bud.
This is how *capitalism works
Sometimes i wonder, the areas of ridiculous housing markets, propped up by the high wages of tech companies, what happens to the thousands of former lucrative employees when they get laid off? When you have tens of thousands of employees making 6 figures thanks to the revenues of global empires like google, FB and apple, how big of an imbalance society has for the people who just have normal jobs, working from the small economies of local business
That's a good question. Certainly adds volatility and unnecessary housing expenses for the non-IT crowd.
The housing market around silicon valley is the only thing that's why. Not everywhere. ALSO you are forgetting that laying of people in that income bracket will hurt the businesses around it and also consumer market and local businesses. So, it's NOT a good thing.
@@randomlyswatching9481 It has effected the housing market in Charlotte, North Carolina too since Apple setup business offices there. Same with Austin, Texas.
Seattle and all the surrounding area is a nightmare because of this tech pay imbalance.
Don't forget about crypto. Alot of money came out of nowhere, and now it's taking a down turn
Layoffs are the new way to bookkeep in that they effect labor but hit management with a lesser impact.
Layoffs? What about all the small businesses that were forced to close from 2020 to 2021? The people who were told that they couldn't continue making money while giant corporations were allowed to do business and leverage their massive stockpiles of cash to improve their online presence? Don't ever forget how Mom and Pop were forced out.
That's capitalism. And you are not part of the big club
You have to sell your sell to the devil in order to get in the club
The fed are selling these stocks caused the failed miserably in Afghanistan. They cant pumped the us tech stocks anymore with printed money. Now they can only sell. It's the epic fall of empire. Rekt usa-nato
ua-cam.com/video/2mgn5fHSie8/v-deo.html
No job or position is guaranteed in this world . Everything is always changing . The hustle is real . Do more of what you love . Life is too short 😊
also never simp for companies because they don't care about you :o)
Mark: I take all responsibility for all the wrong next quadrant progression projection
Also Mark: *fires 11000 employees*
That awkward moment when youve banned too many people and now you don't need all those mods to post block users anymore.
POV Mark created the Back Rooms. It’s called Metaverse
Can't believe I have to say this for the video:
It also was common for Tech Companies to use cheap debt financing to quickly hire talent or expand operations.
With increasing interest rates, debt is now more expansive, and many companies is that never made enough profit are now constrained by their actual earnings.
I think the Apple privacy change is impacting these companies more than people want to admit!
I don't believe a single word when mark zuckerberg says "It's one of the hardest call". Bro is a billionaire, we the tech employees are affected by it. At the end of the day, it was "just a another call" for the company.
You do realize he lost like 50 billion dollars? Like literally one of the biggest losses of money in human history.
@@dixonhill1108 good. no one should have that amount of money. the fact that he doesnt just retire and enjoy life is psychotic to me.
Metaverse is "eating his lunch" total failure.
Zuck routinely stole people's ID info for his advertising purposes and apologized later for releasing it after the damage was done. He's got about as much human empathy as the lizard he has become.
@@mikeryan5856 his wealth is directly tied to his stock. He retires and cashes out he's not only going to have a huge tax bill, he's also going to affect the liquidity of his own company.
Lol it’s not just big tech doing layoffs. But what I like about crashes and recessions, it’s where entrepreneurs come out to solve problems: energy, technology, healthcare, and remedial work that needs replacing
Gotta love Silicon Valley. It’s the only place where you can make $120k per year and have to live in your car. My boss told me that he left his high-paying job in Silicon Valley so he could buy a house elsewhere.
Many people in tech work remote and make 120k+, while being able to choose to live in the countryside and pay low rent if they wish. And not own a car. Cause you work from home.
@@broccolipropaganda not in USA
@@randomlyswatching9481 actually yes here. My partner is exactly this for Amazon.
@@KimmyBee
For now. Musk is setting the tone for remote working.
@@broccolipropaganda Not always. I used to work for FAANG. It depends on your team and projects. But don't expect you could work out of state. You still gotta be close proximity for team meetings and conference calls. Otherwise they just off-shore the project to India to save costs. This remote thing in tech is very much over-exaggerated fantasy.
“These layoffs are something they’ve never seen before”
** Any previous recession enters chat **
Incredible... we don't learn. Similar to 2008's with the finance crisis, it show us that all agents thought that houses prices will increase for ever.
It's simply the bubble popped, we been talking about it for years, and now everyone is surprised? 😅😂🤣
way to be sympathetic
That girl though...she seems to be one of the twitter employees who did nothing
The way you show graphs was very good in this video 👍
I would really like to see these Tech companies come out openly and tell to the whole world that they no longer need people on H1s. And thye need to be forthcoming on how mnay H1s are getting laid off. There is absolutley no transparency and clarity in what they do.
What is H1s?
H1 Visas, mainly people from India coming over to the US to work in tech. Would help to stop that to help our own country and not bring in workers from other countries.
Yes,
India also worries about Brain Drain...
These aren't the only companies facing lay offs. But these are some of the biggest companies
Good video succinct and informative.
They employed far more staff than they needed in the pandemic and once the world turns back to normal so this is why the likes of Meta and Amazon need to get rid of those employees sadly.
Some of these companies were feeling too comfortable with the high profits in 2020. It’s their fault for thinking it’ll be that way forever not realizing people would go back outside. Now their laying paying off for their MISTAKE.
Right, they still probably needed more workforce to meet the explosive demand during the pandemic, now that demand is back to normal they are resizing.
They made no mistake. The Fed came in to shitcan the economy with high interest rates. That means no one knows what their cost of capital is going to be, so they all freeze spending. This stops most consumption. This cuts off suppliers. The suppliers then lay off people as their customers disappear. If you don't like massive spending leading to inflation, don't vote Democrat.
I was 22, only 1 week out of Villanova University Business School and new with Merrill Lynch just before Bank of America bought us out. I just turned 40 and still in the business helping customers daily … my name is Matthew M. Stevick, CFP and this is what I learned: ua-cam.com/video/B6aoap7-oLQ/v-deo.html
Nothing is forever, in Chinese we always say, fengshui always turning.
The fed are selling these stocks caused the failed miserably in Afghanistan. They cant pumped the us tech stocks anymore printed money. Now they can only sell. It's the epic fall of empire. Rekt usa-nato
I keep seeing how top level leadership wasn't affected and I've noticed that before the layoffs occurred at some companies the top level leadership were slowly leaving. I don't think for them it happened all at once but slowly starting dropping off
I'm Stephen from Missouri and you
Imagine leaving Microsoft for Meta and then lay you off the following week 😭😭😭
ua-cam.com/video/2mgn5fHSie8/v-deo.html
The easiest way to keep profitability stable is to cut costs.
It doesnt necessarily mean the business is bad. Its just a way to placate the shareholders and sadly its always the employees who bear the brunt.
Don’t we cater too much to shareholders to the point that we can’t prioritize other needs?
I think it’s leaders who can never have the agency to lead
@@vermiliongourd4619 If the business looses investors then more workers will be laid off. So I guess the idea of that we would rather have some employees get hurt than more employees get hurt
@@Alejandro-cn5yp a business should not rely on investors in the long run. This is a flaw with big tech companies that is commonly accepted. It is healthy precedence for a company to be self reliant at end of day. Shareholders will only back you up when you’re successful, not when you’re in deep trouble. They’re not important in crisis.
Or the business is just so over bloated with a lot of useless employees that do not contribute anything, barely work but exist only because the business do not want to fire them and to have the managers someone to manage.
Sometimes firing employees are not to placate shareholders but to sort the wheat from the chaff.
Very interesting times!
The love of money is their downfall.
This is not some market trend, this is corporate greed to the core. executive salaries are the absolute last cost cut considered in these awful institutions!
How are these institutions awful? THey are creating jobs and employing millions of people that would otherwise often be working at lower-paying jobs.
If they don’t do layoffs, it means the executives don’t get pay raises during this time. Simple logic.
One big factor in all of this that I don't see mentioned much, is that a lot of the tech stocks have poor PE ratios and when faced with imminent recession and the growing shortage of cash thanks to the Fed's rate hikes, these stocks historically tank. Go back and look at the tech bubble burst in the late 90s.
Time is a circle.
They are not catering to a financially learned population here. Just look at comments. Someone wrote Netflix went woke and so lost money.🤦. They don't understand stocks.
GIVE HER A BETTER MIC ...PLEASE WSJ
girl in the blue sweater sounds really unprofessional, like she's reading a teen magazine
Most of these companies are run by inexperienced CEOs and leaders. Most of them don’t even acknowledge the “luck” component that made them successful and think it’s because it’s only their own “unique” hard work that got them there. So it’s not surprising they wouldn’t weight opinions unlike their own equally.
I have to AGREE. They also don't take advice from financial institutions
And these CEO's/founders suddenly think that they are this genius expert at business and finance.
That and most of them had already rich parents.
There's no luck to a 0% loan. The federal reserve is bringing that to a halt quick and suddenly it will seem like nobody has the magic touch anymore, because the fed took the punch bowl away and turned off the music.
I don't wanna be the guy defending CEOs, but your statement doesn't make sense; these CEOs have either run massive teams for decades before they even become CEOs, or founded the company themselves. Just looking at the 3 companies' CEOs in the video: Andy Jassy's been with Amazon for 25 years, and leading AWS for 18 of those years. Reed Hastings co-founded Netflix and has been running it the entire time, and the same thing with Mark Zuckerberg of course.
Maybe "inexperienced" wasn't the word you were looking for, because I don't know if anyone would consider these CEOs with decades of experience managing people "inexperienced".
The job security 😂😂😂
This is the first wave of layoffs. If past recessions are indicators to what's coming, expect 5 more waves of layoffs.
I agree 100%
Layoffs are ALWAYS the result of a mistake. Someone at the top misread the situation and allowed the company to build excessive human capital at the wrong time or the wrong nature.
Nevertheless, it is never the person at the top that pays the price for such mistakes. It is the mid-low levels of the organization that bare the impact of their wrong decisions.
In a ethical sociaety, a layoff list will start with the names of the people that error in the first place.
While that may work from a revenge human feelings view, it would be incredibly inefficient, truth be told, for most organizations it's best to keep their most valuable human capital even if they make mistakes from time to time since no one is perfect and they can learn from the experience, but to keep human capital that does nothing for you while laying off the ones who generated the most income it's a quick one way ticket to bankruptcy
Not always, no. New hires during growth, then get rid of them when they're no longer needed. If growth continued, they would need to be prepared.
@@ericsaul9306 This assumes that top management are the most valuable human capital which I find very questionable.
Ehhh. Hiring is based on predictions. So errors are inevitable.
@@XMysticHerox well they are the reason the business works, if you think it's so easy that they are not valuable at all you should open your own business, if you are right you'll become pretty rich since you should be able to outcompete everything on every market given that you don't need that extra people
No talk of free money and low interest rates coming to an end? And how much tech companies relied on that?
Lol all of them. House of free money haha
This isn't an institutional problem, times are just hard, for people who have to actually work for money. 🫠
The star player worker has knowledge no other employee can contribute that the companies are making loans just to be able to buy up the entire company to gain access of the worker.
Because Companies consist of many workers they don't feel to fire half the workforce, it would demoralize the star player. Instead what they waiting for is hard times where them gain an excuse to fire people. Elon Musk as example fired people and then looked upon if any of the fired people were worth keeping. If it was a real emergency the company wouldn't have the luxury to cherry pick who to stay.
It’s not greed the it’s pandemic affect they made a lot and hired a lot of engineers. Engineers that were doing two jobs at once but being let go off because they are no longer needed. IT companies made a lot of profits but didn’t think what will happen when the pandemic goes away slowly and steadily. The inflation is also decreasing profits so let’s see how they survive.
Love to see these guys self destruct themselves.
I think Wall Street journal should lay off half their staff
This is normal in any fast growing industry. You end up with too much duplication of functions, so employees can be trimmed with no damaging effects at all. In fact, it can actually improve processes by being more streamlined. Additionally, you always have poor performers who found ways to stay masked from being exposed, so when the crunch is on, they will be let go first and rightly so.
Profits of products often follow behind humans’ changing behaviors and in a pattern of products’ life circles.
I'm Stephen from Missouri and you
High Tech is like the titanic, and inflation is an iceberg .... Let that sink in. 🙄
Cheap dollars also made companies throwing money at everything
Mark should of made that video as his avatar in the metaverse 😅
ua-cam.com/video/2mgn5fHSie8/v-deo.html
wow， what a season... everybody is laying off everybody!
This is good for smaller companies that are in need of talent
I'm Stephen from Missouri and you
I thought ''we are family'' and company love their workers🙁
Don't use these useless social media platforms, there is life without these weapons of mass idiocracy. Do your shopping at small and independent retailers and shops. Do not feed the monsters, don't be a slave, free yourself from vulgar materialism.
just shows that growth is not infinite
If we're honest, most Big-Tech companies are also incredibly inefficient. Poor work distribution, inefficient processes and bad incentive strctures have prevailed uncontested for a long time.
That sink gag didn’t age well.
Thank you. Succinct overview of what's going on.
Please let me know if there is a good software program out there.
Excellent video but very poor audio reception and communication skills by Meyghan Browbowski as her voice fades dramatically at the end of each sentence making it hard to understand her points.
Amazon categorically did NOT deliver 2-day shipping for two years and still isn’t much of the time.
You can always say it was X or Y reason, but ultimately we know that this is part of a bigger overarching economic recession and these are just dots connecting.
Controlling inflation means cooling the economy which means more layoffs and job hiring freezes.
lol inflation in this country is exacerbated by corporate greed and price gouging. get a clue.
Almost as if companies with no real physical assets in tech all this time have been overvalued...also every major company that has gone through major layoffs saw almost guaranteed lowering of performance and revenue with CEOs fired with in a year. Greed. Short term sighted, spike in stock prices, shareholder happiness, all for long term downfalls almost guaranteed.
Layoffs is a great stock boost
How come?
Why is there a lay off if there is a big quiet?
Corona flourishs the on line business such as amazon, meta, Netflix . as pandemic subsides , on line business decreased
It's a good explanation. 🌻
It's entirely incomplete though. This isn't just a pandemic correction, it's far more fundamental than that. They don't produce things that people actually want.
Plus the stances and blatant biases and etc etc etc that came out during those years. I don't even know anyone who uses fb anymore, and most people I know also don't bother searching things on Google either.
Just in time for the holidays. Thaaaanks
Maybe keep Meghan Bobrowsky print only and not be one of your front facing people. The vocal affect of a 13 year old really hurts the brand. Alternatively some diction lessons to teach her how to converse like an adult.
They aren't cutting their executive. Bonuses and pay though.
Check it out
They used to call this a ‘transitional period’ or ‘end of an era’.
If you continued to work for a company like meta or Google, seeing how they were being publicly perceived and seeing the shady behaviors yourself, simply working there, then that's on you if you got fired. Typically you'd want to be proactive and get out ahead. FB was facing a blatantly obvious impending downfall. That'd be like hanging out on a sinking ship and then acting surprised when youre swimming in the ocean.
This is the natural cycle of industries. I don’t know why Silicon Valley thought they would be immune.
Because the faces of silicon valley are so arrogant and narcissistic they actually think that their software is the next stage of humanity’s evolutionary cycle. Let that sink in for a minute.
Umm I know two meta employees who were laid off and they were the most entitled narcissistic people…the kind of people who always post on LinkedIn and social media how awesome their lives were. Guess what? They got laid off and for almost a year they will get FULL PAY!! They don’t even care they got laid off so…basically get a free year of paid vacation. This is not a big deal. Meanwhile, no one cares that the keystone pipeline was canceled and led to layoffs of workers who don’t have tech layoff luxuries.
the mind, the soul, idea, myself, reason, fear, doubt, health
Great explainer.
Greed to satisfy stock holders is/was extremely high during pandemic. I don't think they didn't see this coming, obviously EVERY industry and EVERY company can not keep up with the same level of rapid growth. They should have seen it coming as the growth and inflitation was way too high. It was just too much of greed. Microsoft did a great job I guess.
Federal law says that companies that have investors, the investors are top priority. If you don't like it vote Socialist. Then the rich and connected have the money and everyone else starves.
The fed are selling these stocks caused the failed miserably in Afghanistan. They cant pumped the us tech stocks anymore with printed money. Now they can only sell. It's the epic fall of empire. Rekt usa-nato
People who work for Big Tech for the most part, VOTED for the economic conditions, inflation and looming layoffs.
Wall Street Journal: Pleeeeeeease get Bobrowsky a speech therapist. This is just embarassing...
how about PayPal and its plummeting share price?
Well, that is due to them hating certain people that lean right on the political scale so for that reason I hope PayPal dies.
@Shania Van der Halen I think he does and is nailing at least part of it.
Very good analysis.
they saw twitter fired a lot of people but the performance is the same, they realized that they have a lot of people doing nothing in the offices