[vbordo]

Not quite sure why you're getting downvoted. Might be due to your friend's unsubstantiated claim tech workers (on average) are overpaid while underdelivering. However, the core observation is reasonable. Layoffs create desperation in the labor pool which is likely to drive median tech wages down. This benefits companies opex long-term as they restart the hiring cycle over the next couple quarters. Doubtful we're seeing market-wide collusion on these layoffs but it certainly creates an institutional hiring advantage.

[MuffinFlavored]

> Might be due to your friend's unsubstantiated claim tech workers

In his defense, he does own a small tech startup ($1m/yr I think?) and that has like 10 employees (3-4 engineers), so he has his finger on the pulse (or at least he thinks he does) when it comes to tech hiring.

That's a big problem, right? You think his claims are unsubstantiated, he thinks he knows it all and he's seen it with his own eyes. Who is telling the truth?

[bunbunbun]

Agreed but also it’s weird how a lot of lay-off %s are 7% +\-1 though?

[MuffinFlavored]

It's like one CEO did it and it opened the door for it to be socially acceptable climate wise for everybody to follow suit.

[bunbunbun]

So, a fad?

[MuffinFlavored]

I would say fad is probably a poor choice of words given the perspective "if one CEO thought it was appropriate (they let headcount + salaries creep up too high" and deemed it was in the realm of "action needed to correct", it probably wasn't baseless.

Have you taken a look at the year over year headcount growth of some of these companies? If anything, you could make the argument that 7% isn't enough :/

[bunbunbun]

I’m not really in the business of sympathizing with CEOs for poor past decisions