[kbolino]

I think we have another problem looming, beyond the realization that many engineers are unnecessary:

Most of the business models in tech are unsustainable. The ad-revenue driven explosion of the Internet over the past ~15 years has long since reached saturation. The data mines are all tapped out, and what have we learned? Mostly, nothing. Following a person's habits can help you target ads and drive them towards (mostly) unnecessary consumption. Then what?

Without ZIRP we're going to run out of the easy credit fueling such consumption. The economic hamster wheel is going to have to slow down. Then the realization that the SnR on the data being collected is practically 0 will set in. An immense amount of investment dollars was thrown at companies that charge nothing to the end user but collect and sell data to third parties. Yet that data is almost completely worthless.

I personally think fee-for-service is eventually going to make a (bigger) comeback, though another round or two of ZIRP might stave it off for awhile. As it does return, it is going to put even more pressure on companies to run lean teams.