That's because the people running these companies learned the hard way not to write their collusion down, so now they just all totally coincidentally act in the same way that ends up driving wages down and keeping workers afraid and in line https://en.wikipedia.org/wiki/High-Tech_Employee_Antitrust_L...
Why would you explain this with a conspiracy theory of collusion instead of Occam's razor -- that they were responding to similar changes in market conditions, with input from similar shareholders?
This is not a conspiracy theory, even though what I'm about to say will sound like it. If you can talk to someone from the exec class in confidence (which unfortunately may require a close personal relationship or high trust), they'll tell you there was a clear -- if somewhat tacit -- understanding that the job market had gotten too hot during Covid and something "had to be done" about it after ZIRP ended.
Elon's layoffs at Twitter were basically the signal for the rest of the industry that it's time to reverse the trend.
Right, but I'm contending there is a form of collusion. Here's a paraphrased conversation I had with someone who's in the exec class when I remarked on all the layoffs happening at the same time:
"Elon has signaled to the industry that you can layoff a 80% of your employees and things will still be OK, and the rest of the industry is following his lead."
When I pointed out that that wasn't true, things were actually getting rather bad amongst the employees and from a product quality / safety perspective, the response was, "It doesn't matter. They've all decided the status quo must change and decided that they want to do the same things."
This rhymes with what I heard from other senior people as well. And suspiciously the same anti-employee tactics have been happening across the industry at the same time -- layoffs, forced attrition, shifting jobs offshore, RTO, increased workloads with reducing headcount leading to record levels of burnout...
Even if we charitably assume it's group-think, that's still a form of collusion.
It's not some global conspiracy, it just aligns with the end of the ZIRP era. Companies could ignore headcount and hire endlessly just to singla growth to investors, while free money was raining from the sky.
Amazon made $17.4 billion profit in Q3 2025 alone. That is, they made so much money they couldn't find any way to spend over five BILLION per month even with this 'excess' headcount.
> Amazon has about 350,000 corporate employees and a total workforce of approximately 1.56 million.
Is it mentioned anywhere that the roles eliminated are all going to be software engineers, because that’s what all the threads so far are interpreting this as. This feels more like preparing for a recession without saying it out loud. People aren’t buying as much anymore and with focus on cost savings across tech, can easily understand AWS not covering for lower retail revenue anymore.
I’ll say that the parent comment is correct and explain why I think it’s correct.
Amazon has demonstrated a preference for “unregretted attrition” (URA). URA is the name for what happens when engineers exit the company and Amazon is happy that they do. The exit can either be due to a PIP failure (performance improvement plan) or just unhappiness with the company. If you believe URA works well, then URA is how Amazon gets rid of low-performing employees. If you are like me, then you believe that URA is mostly explained by the following factors:
- Failure of Amazon to successfully develop engineers. A good company will turn engineers into better engineers, and Amazon gets rid of them instead, which is inefficient. The attrition is only unregretted because Amazon was not competent enough to develop these engineers into better engineers.
- Consequences of poor culture, causing good engineers to mentally check out and eventually leave. The attrition is only unregretted because the good engineers will care less and therefore look like bad performers, when they’re good performers in a bad environment.
- A way for Amazon to avoid paying out stock grants at the 2-year mark (which is when you get most of your stock grants at Amazon). The attrition is only unregretted because somebody at Amazon cares more about the short-term bottom line.
- A way for managers to exercise control over employees they don’t like. The attrition is only unregretted because Amazon’s decisions about employee performance are based on bad data provided by managers.
I won’t share stories here but the targets are around 5% per year, maybe a little higher.
Meta also does something like 5% in unregretted attrition a year. I just don't know why you think AMZN wouldn't include those people in layoffs preferentially to higher performers.
During my time at Meta, they were teaching the engineers a lot, spent a lot of effort on proper onboarding, allowed changing teams at least once a year (more often with longer tenure), and otherwise seemed to make it easier for an engineer to find a better place in the Meta's structure instead of leaving.
I've been in the tech industry for 45 years. Layoffs happen regularly. Well, not regularly, what it is is a chaotic system. There will be good times and bad times. The best way to deal with it is to immediately save, at a minimum, 6 months of runway. Preferably a year.
When you're in between jobs, work on:
1. improving your job skills
2. network
3. build your resume by contributing to open source
I don't intend to be dismissive by sharing a bunch, I ate a bunch of downvotes so I should share something. But, there's no singular, like, Wikipedia article for "tech layoffs spiked significantly in 2022 and have stayed elevated" - so this is a mix of informal and formal and academic and business news that treats that knowledge as implicit while discussing it.
(I am deeply curious what valhalla you are at that skipped this so much that it was a foreign idea! N or A, it must be one of those two)
Sure, it waxes and wanes. 2022-2023 were probably above average layoff years, while 2020-2021 before that were probably below average years. I think layoffs have fallen since 2023 rather than staying elevated, but I haven't attempted to quantify that.
Q: You know what investors and shareholders love more than having 1 billion dollars?
A: Having 2 billion dollars. And with all the money being burned on AI, having 2 billion is better than 1.
If mass layoffs causes the stock to go from 1 to 2, then guess what's gonna happen?
In the ZIRP era companies would hire needlessly to get the stock up because that signaled growth to investors. Now it's the opposite, you trim because that gets the stock up, not because they conspire together to lay off people.
Why is the highest and best use of a company's free cash paying the least productive employees, instead of returning cash to shareholders or investing it in something more productive?
That's because the people running these companies learned the hard way not to write their collusion down, so now they just all totally coincidentally act in the same way that ends up driving wages down and keeping workers afraid and in line https://en.wikipedia.org/wiki/High-Tech_Employee_Antitrust_L...