Why Widespread Tech Layoffs Keep Happening Despite A Strong U.S. Economy
ฝัง
- เผยแพร่เมื่อ 8 พ.ค. 2024
- The tech sector is having a big 2024. Nvidia just crushed earnings expectations. The AI boom remains in full swing. The tech-heavy Nasdaq index is up more than 8 percent year-to-date.
The U.S. economy is also doing surprisingly well, adding 353,000 jobs in January, well ahead of economists' forecasts. Hotter-than-expected inflation data may also keep the Fed from cutting rates as soon as the market expects, a sign that the economy remains strong enough to support higher interest rates for longer. It's a different story for tech workers, though.
"The layoffs to the start of 2024 signal a dramatic shift in the tech industry," said Jeff Shulman, professor at the University of Washington's Foster School of Business. "We're going to continue to see layoffs happen as the future of work has changed, as the future of technology has changed, and as investors appetite for risk and growth versus profitability has dramatically changed as well."
The number of tech sector layoffs in 2024 has been outpacing the number of terminations in 2023. So far, about 42,324 tech employees were let go in 2024, according to Layoffs.fyi, which tracks layoffs in the tech industry. That averages out to more than 780 layoffs each day in 2024. In 2023, nearly 263,000 tech employees got laid off, averaging about 720 firings each day that year.
There are several factors behind the churn. Artificial intelligence is at the forefront. Companies need to free up cash to invest in the chips and servers that power the AI models behind these new technologies. There's also the stock market effect. Companies that conducted layoffs haven't been punished for it, either by investors or on their bottom lines.
Watch the video above to find out more about why tech workers may be poised to endure another rough year of layoffs, and why the surprising strength of the U.S. economy may not be coming to their rescue.
Chapters:
0:00 - Intro
2:26 - Hiring and firing
4:24 - The AI effect
7:15 - The end of cushy tech jobs?
9:50 - What’s next?
Produced by Anuz Thapa
Edited by Michael Hoyt
Narration by Jordan Smith
Graphics by Jason Reginato and Christina Locopo
Supervising Producer Jeff Morganteen
» Subscribe to CNBC: cnb.cx/SubscribeCNBC
» Subscribe to CNBC TV: cnb.cx/SubscribeCNBCtelevision
About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
Want to land your dream job in 2024? Take CNBC’s new online course How to Ace Your Job Interview to learn what hiring managers are really looking for: cnb.cx/4871WwH
Connect with CNBC News Online
Get the latest news: www.cnbc.com/
Follow CNBC on LinkedIn: cnb.cx/LinkedInCNBC
Follow CNBC News on Instagram: cnb.cx/InstagramCNBC
Follow CNBC News on Facebook: cnb.cx/LikeCNBC
Follow CNBC on Threads: cnb.cx/threads
Follow CNBC News on X: cnb.cx/FollowCNBC
#CNBC
Why Widespread Tech Layoffs Keep Happening Despite A Strong U.S. Economy
As a programmer and technical manager, I can tell you that none of these jobs are getting replaced by AI just yet. AI is not yet there. This is just companies prioritizing today’s profitability over tomorrow’s growth in response to predicted upcoming market conditions.
yea, but ironically idiot leadership who dont understand AI think it IS there and causing these layoffs
Agreed. The programmers use it for the most basic of things like "give me a regex for validating email". Basically Google search on steroids.
This. Straightforward and sensible comment.
There was a Twitter post making the rounds that said "AI can replace developers once clients can accurately describe what they want."
If you know, you know. 😉
As a developer, what is the best thing I can do to. Any suggestions? I am currently in full stack development. Should I move to AI because the demand will be high in future?
As a new tech worker, I have received the message - don’t bother being loyal to a company that views you as disposable. If a better opportunity presents itself, take it.
don't forget to tie your shoes, too
@@jemal99 What?
"If"...is the operative word here ;)
This was true way before AI.
@@jemal99a lot of people in tech don’t understand this, not just junior employees in the industry.
They sure did take the long way to explain CEO greed. The one guy even stated that they fire people who knew old tech to make room for people who know new tech. Why? Costs less to have a bunch of new hires than to train the old ones. Plus a lot of tech companies get tax breaks from over hiring college students, then they lay them all off, and hire a new batch. It's just a big circle of greed.
Younger workers cost less to provide healthcare insurance if offered, and can be forced to work 60 hour weeks or more with no overtime. Or employers can claim they can't find qualified domestic employees and use that to hire cheap foreign H1B visa people in India instead, for example, and have plausible deniability to justify it. Rampant ageism doesn't help either.
It's been like this for ages. Exploit college grads who have debt and fire/hire instead of train. Everyone else has got to guess what knowledge they need for the next role.
Stop crying.
Here in the construction business we need lots of people (bricklayers, surveyors, electricians, welders, etc)
It's well paid, lots of overtime, permanent high demand, dirty jokes galore, face to face problem solving, macho environment, great camaraderie.
Can you?
Of course not because you're a soyboy.
Now go to mommy!
It' simply business . Companies are in to make profits. When you realize this, you would know what moves to make.
It's much worse than that.
Been in tech over 20 years. Very few of these jobs are being automated. Execs just want to bump up the stock price. Hiring or firing, whatever lines their pockets. When 99% of an execs compensation is stock, they are not leaders, they are market manipulators.
Good point
Sounds like Tech is not a reliable field at all!
I heard about that too. My coworker was telling me that. Tech industry is too risky to work in.
Been in tech just as long. Spot on. Companies look at boosting their stock price, and that's about a short term view one can take. It sucks.
Agreed. I've been in tech since the late 90s. Anyone can code. Not anyone can sit down and learn the business side of things. With every line of code I write, I'm speaking to business. Wait, why am I doing this? Do you realize that by me doing this, it's going to affect us here? Also, I spend a lot of time taking on code that no one else understands. Programmers spend a good deal of time trying to learn what someone else did and take over their code, understanding the business decisions that were made behind that. I've only got about 8 years before I retire and my 401(k) is already funded, so if I'm wrong, I at least won't be out on the street. a
Let’s be real, companies will just hire when it’s fruitful to look like a massive player with lots of staff, and will fire when it’s fruitful to look lean at times when people are questioning fat.
That's most of it, yeah. Looking at CNBC's own charts, most of that massive pandemic-era hiring is still in-place, so clearly the companies don't actually think they "overhired". It's performative for the Street.
Image is everything. If you ain't rich, you ain't sheet. 💪😎✌️
Corporations are always trying to do more with less as AI becomes mainstream.
@@SSGoatanks- right up until somebody loses a whole bunch of money because they published an AI hallucination and got sued into oblivion.
AI and robots are taking over ppl jobs
The Brittany Pietsch video, if it had fully been played, would show that she had only been working for the company for a few months and the reason her ‘metrics’ were low was because the time frame she was being evaluated on included the holiday season in December, when the people she needed to contact for her job were largely all taking time off. So she was hired despite the company soon proving it couldn’t afford her (and all the other employees they laid off), and the company used something that was out of her control as justification for getting rid of her. The utter disregard companies now have for their employees is why this is going viral.
Huh? People who have joined for less than 6 months are prime candidates to be laid off. Do you want to fire experienced and contributing workers or inexperienced and still learning workers?
@@yackawaytube then they should take accountability for it? They have projections and should take action to refine them instead of being lazy at the cost of peoples lives. Ive seen those who got riffed have to relocate across the country with their families just to get screwed over on more than one occasion since 2023 just to make Quarterly earnings look good for said firm.
These firms have so much revenue and more autonomy than the average employee does in what happens. I hope these C-Suites get what they deserve soon.
@@yackawaytubeyou very clearly don't know her actual story and are commenting bc you're a corposimp
Yeah it sucks that she lost her job but posting the video on social media might have slowed her chance for a new job.
It's because her work is useless like a gender studies diploma...
BTW, here in the construction business we need LOTS of workers.
It's well paid, lots of overtime, permanent high demand, face to face dealing, dirty jokes galore, zero political correctness.
It's a macho job and your hands get dirty.
If you're a liberal snowflake don't bother...
Hire to reduce tax and increase profits, fire to increase stock value… sounds like a recipe for a stock crash.
Hiring Increases Taxes and Liabilities.
Ever Heard of Payroll Taxes ? You know FICA Social Security Taxes and Income Taxes.
"layoffs are a failure in leadership" and yet I'm sure leaders do not see it that way. If you're having multiple rounds of layoffs, you failed as a leader, but leader gets paid for failure. Amazing.
That's cope and political answer.
In reality there are loser and winner.
Loser get layoff.
If you good no reason company layoff u
@@adrianhartanto5243wrong. Companies failing to reach their goals falls on the leadership. Companies hiring too many people calls on the leadership. Companies having to pivot because thry made a mistake on the direction of the company is a failure in leadership.
Also, generally companies want to keep the good workers around but that doesn’t always happen. If you’re getting rid of an entire department you’re getting rid of good people there.
standard CEO talking point:
"i take full responsibility"
no you don't.
layoffs is because the company thinks it cannot afford to pay staffs anymore to meet their earnings/profit expectations or their competitors are eating up their shares or simply there are cheaper ways to do business using automation. not because of failure in leadership.
I have a question , if you own a business and it’s busy , you hire more staff . Make sense ? Business is slowing and you have extra staff ? What do you do? No choice but to let go a staff or 2 to keep business going . Opportunity arises and robots or AI does the job . Saving you thousands/ millions for the owner/ business .
Or just give to Woke and entitled individuals and share the wealth ?
As a tech worker I can tell you for certain that AI has absolutely nothing to do with the layoffs. A convenient excuse, maybe, but that’s it. It hasn’t advanced to the point where it can be nearly reliable enough to replace a human being in most roles. What’s actually going on is much more boring: executives looking to maximize profits and slim their companies down by any means. Why now? Because high interest rates has made borrowing money expensive, venture capital money is much harder to come by, and everyone is trying to meet unrealistic growth targets to attract what money is left or to reassure wary shareholders.
They are repaing record profits. Senior management, which themselves are major shareholders, and top investors are getting the money. Vendors are being stretched, employees are being cut, remaining employees are being overworked, and customers are being told to be patient due to "labor shortages." Meanwhile there are mysterious record profitsa and the stock market is doing just fine.
AI is indirectly causing the layoffs though. All that nvidia GPU is not cheap. You gotta balance the insane costs of buying and running those gpus somehow.
@@Fear.of.the.Dark. AI is still in its infancy to have any meaningful impact. Any company employing AI to replace workers would risk being a test dummy and losing profits. AI needs more time to work out bugs before it can be used widely in production.
Many are still "enjoying the bread and circus" and are clueless about the effects money printing, the interest rate risks, 2023 bank failures, and the continuation of the bank failures this yr. There's a reason the big boys have been slangin their stocks real hard and it aint because of AI. The head clown of the FED's said it himself. He expects more bank failures this year.
So should I continue prepping for good days😂..honesty I always lose a day or two of coding because of these things... anyways I'll continue learning to code😂
What you’re saying is true, but don’t forget how inflationary the environment is right now. Company’s have costs for good and services too. The higher it goes the more it costs to operate.
Almost everyone, including the media, is anticipating a market catastrophe, and as a result, many are turning a blind eye to the opportunities in the market. I recently began investing in stocks and it was the best choice I've ever made. If you genuinely want to be financially secure, disregard everything the media is suggesting. The market offers a lot of chances. Maximize your use of it
What opportunities are there in the market and how do I profit from it?
@@Kathya_AguileraYou can make a lot of money from the market regardless of what occurs, whether it strengthens or crashes. The key is to be well positioned, and that's what matters most.
@@nanthai6609I will really like to know how this things actually work
@@Kathya_AguileraI personally employed a t’rader. Her ability to t’rade and produce big pro:fits, in my opinion, is excellent.
@@nanthai6609Do you have an idea of any good pro I can start with?
It was almost impossible to even get a job in this Tech industry BEFORE these layoffs in my country(norther Europe). And they have been claiming "Shortage of STEM workers" lies for 2 decades now. I wasted years on education and searching for a job with almost nothing but rejections. Waste of money and time on a TOTAL LIE.
I kinda feel the same
git gud
Yup, the "shortage of STEM workers" is the biggest lie of this century. They just want to bring in more and more people so that they can decrease the average salary and individual workers become more expendable than ever.
Also, STEM education itself is a great moneymaker, so they cash in on that too.
It's your OWN fault.
From Vikings to sissies.
Your liberal empowered women filled your countries with "cultural enrichment".
Yeah they claim shortage and then they import labor from India using preferential visas all while you can't get a job. I see the same thing in California. H1B visas everywhere, Indians mostly, but other countries too. And then they lay off citizens. Despicable and immoral.
I was laid off in that January 2023 spike. The second time I had been laid off in 3 years. Unsure if I wanted to go back into tech, I worked at a small mom n' pop tea shop while I tried to figure out my next move. I networked with customers while getting my travel agent license in my free time. That networking led to an Ops Manager position at a small cannabis company of about 20 people. Now I have a salaried position by day and book travel for people at night for extra money and travel perks. Both are remote positions and I work the same amount of hours while making as much if not more than I did at some soulless tech company. If you were recently laid off, just know that things can turn out for the better.
I thought travel agents were obsolete replaced by travel websites 20 years ago.
People can also just work tech jobs in other industries. New workers especially need to look beyond FAANG. Can't get your list of leads off the Nasdaq 😅
@@dannydaw59I’m a travel agent and 2023 was my best year ever and 2024 is already way better than 2023. Travel agents are a service provider; no it’s a growth industry not a dying industry. People are booking more complicated trips than ever and need expertise that they don’t have to make it happen. My customers are busy professionals who just need me to make it happen. They don’t have time to deal with it .. they just want to go on the trip, not plan it themselves.
@@dannydaw59 I also thought they we obsolete. @walkinthepark_travel did a great job explaining how and why it's still very much a thing. It's a service/sales/consulting position. I mainly service clients looking for complex, multi-country itineraries and east coasters looking to spend a few days in the Caribbean. There definitely is a demand as travel agents also typically have access to better deals on accommodations than you'll find on public sites.
@@mandisaw Exactly. There are plenty of small to midsize companies that would immediately hire someone with tech or project management skills. The prestige and clout of working for a company with a one-word, household name is, in my opinion, overvalued.
After a long career as a software engineer / software architect I can say big corporations are the pits to work for. The benefits may be good, but the working environments range from lackluster to downright toxic. Don't expect loyalty, your only value to them is what you can do for them today. Smaller or mid sized companies, in my experience, are much more stable and while they can also be terrible they are more likely to have good vibrant cultures than large corporations. And if you can handle the uncertainty start ups are a blast. You have so much more freedom and ability to set the technical direction of the company. But they can implode over night. And if you find a good management team, consider sticking with them. Often times they'll shift companies as a group if they see a better opportunity. Loyalty to people, not companies. I'm with a group that has moved together through four companies now over 30 years. It's been a wild ride.
I second to that... Been working for large tobacco and laid-off. Now I'm jumping into a smaller tech company.
workload-wise, its the same, but the environment is much less toxic and much-much more forgiving.
As another software engineer/developer I'm curious: You've moved companies as a team of engineers together, or? Management team?
Thanks for the suggestions on mid-small companies and startups over large corporations. I'm hoping these layoffs from big tech means more mid small sized companies and startups instead.If big tech gets smaller that's a good thing.
@@miyalysWe've pretty much moved as a whole chain. When it's time for a move a couple of upper management types will look for a fragmented marketspace where there is a company that has potential to consolidate the market but is underfunded, disorganized, etc. They buy the company. One fellow takes on the CEO role, another is VP of development, and then as or if we feel like it individual developers, team leads, QA, IT, etc., over a period of time will saunter over to the new company. Some never move but we pick up a new person here or there that's interested in the new challenge. We work to build up the company and consolidate the marketspace. And so far we've always been able to do that, but at a cost. Usually we get bought by some larger corporation because of a need for more resources. And no matter how good that company is eventually they want to put some of their own people in charge, and then the rules and red tape start. And when that gets to an annoying level the search for another company starts.
@@xlerb2286Thanks for clarifying!
Companies: You're fired for not being born with knowledge of AI technology.
New job postings from companies: LOOKING FOR AI SPECIALIST WITH 10 YEARS EXPERIENCE.
That's a stupid comment If I ever saw one.
@@flybeep1661 you clearly dont work in tech. They aren't wrong lmfao.
Ai used to be called Bi… business intelligence. Knowing what to feed the algorithm is key, these dashboards used to be built by humans.
@@flybeep1661 You sound like the most outdated and illiterate one here, go get yourself informed on the current market!
Imagine being such a greedy pig obsessed with productivity you lose your common interest to keep humanity employed.
Hope A.I. absolutely fails.
Prioritizing stock value over social value is the true economic sickness.
i disagree:because market competition and meritocracy is the ONLY way to limit human corruption. Government interventionism in private sector business automatically becomes COLLUSION (classic definition of Fascism), then concentration of absolute power over every aspect of life (not just people's money) . This happens as global elites no longer CARE about money; they sacrifice vast sums of it to gain control over people's minds which they are doing through social media, news outlets and the entertainment industry. They think they know "better" because they consider themselves gods.
without stock there would be no job to work?
Oh no, here’s one of the self righteous better-than-you-and-me ESG DEI LGBTQXYZ 🤡🤡. It’s called capitalism, profits, don’t like it then move to Venezuela Cuba North Korea
Brittany wasn't really in tech. She was a sales person. Sales is notoriously volatile and while related to tech, is not really a good example of "tech layoffs".
Exactly, most of the "tech layoffs" are not really tech people.
It’s great example. Sales is want brings in new business. Once new business drys up, what do think is next 😂
Is this true? They showed the google example and it had multiple tech roles.
@@pragueexpat5106
I believe they are using tech for any worker in tech regardless if they have an actual technical desciption.
@@keanuwapples1603 It's a poor example. Of course sales are needed. But the gist of the report is about how technical workers are being laid off. By your defintion, we should be including people such as janitorial staff when referring to tech workers. After all, they work for the tech company right?
I cant wait for the day AI takes a CEO's job
Sounds like a lifelong burger flipper. If being a CEO is so easy go do it chum.
It will be argued how ai doesn’t have a soul on that day
CEOs actually work a lot, but it doesn't mean there aren't bad apples, the same can be said with employees and middle managers.
That won’t happen with AI. For this it would need to be AS. Artificial stupidity..
there is already at least one company with an AI CEO, more of an experiment
Cannot wait until CEO's are replaced by AGI.
This something not discussed enough. Everyone thinks the workers only will be replaced. But think about it... CEO could easily be replaced too.
When that starts happening, Wal-Mart's gonna sell out of knives, bats, and lighter fluid overnight.
There is an old Twilight Zone episode based on exactly that premise. Slowly but surely, every employee gets replaced by machines and computers until there is nobody left but the CEO, who eventually gets replaced by the robot used in “Lost In Space”.
@@RobertJohnson-bj5lk "The Obsolete Man."
AGI will do exactly the same thing. It won’t be any different. Actually I doubt if YOU became “CEO” you would behave any differently. It’s just the way things work. Replace any current CEO with any other person and the behavior will be the same. It comes with the job description.
Weird how it's never the CEO or other executives or board members who pay the price for poor business decisions. They directed the company to grow or hire too fast and end up having to do layoffs, upending hundreds and thousands of people's lives, and at the same time end up with bonuses. Sick sad little world.
Weird how you only blame the guy on top. Easy, ain't it.
@@shivin1962Look at you, sticking up for those poor CEO's 🥰🥰🥰 I'm sure they appreciate it and would do the same for you 🥰🥰🥰
So... how many maga hats do you own? Imagine simping for billionaire CEO's 🤣typical trump voter.
They fired the CEO and other leaders at my Company last Thursday so sometimes it does happen P:
@@indawgwetrust4255when did being a Trumper become an insult? with everything going on I'd say being a Biden supporter is far worse 😂
The reason why it's harder to fire CEOs is because most of the time they know how the company is run so unless they made a hug mistake that is clearly thier fault it's hard to pin things on the person who was there when the company was successful.
That's not to say that CEOs don't get fired because there are alot of companies that fire thier CEOs it's just they tend not to immediately go to the media like this so you don't hear about thus complain it never happens.
I agree with everything you've said til you mentioned trump. How is demented Biden any better than trump, during Trump's presidency, there were many available jobs and now that biden is in the office the economy is nothing but dumpster fire, many people are laid off and somehow that makes biden better? Wake up, vote trump if you want Americans to have jobs
These layoffs are happening as a result of development and adoption of artificial intelligence in industries, best advice i would give is for everyone to mind their business and start purchasing assets that will help generate passive income overtime.
With around £120k invested in Tech stocks, any suggestions for additional stocks to diversify across various markets? Looking for a well-rounded portfolio that balances risk aversion with returns meeting yearly inflation concerns.
Consider hiring financial advisors, estate planners or tax experts. They can provide specialized knowledge and help you navigate complex financial decisions.
Certainly, I've been consulting with a Certified Financial Planner (CFP) since the outbreak. Beginning with an initial fund of $80k, my advisor makes decisions on when to enter and exit positions in my portfolio, which has now expanded to around $350k.
How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings
Amber Dawn Brummit is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Just swapped all of my last ETH and swapped it into Blcktken300 . Already up a little bit. Unfortunately I have some other junk staked which won’t free up for a while. Still now I am on the train!
I got laid off in March 2023, and then again in August 2023. Haven't found anything since. Working at a car wash for the time being making 1/3 of my previous salary...hoping I'll find something soon that will stick.
Keep your head up! It took me 18 months to find a decent job after graduating college in 2017.
This is just a question, Didn't you saved any money, during the economic boom in the IT sector?, Sometimes I dont understand, how some people who used to have a good salary instead to spend their money, didn't save just a little to hold on 2 years at least if you dont find a good job again, It's like something obvious that in plenty 21 century there are not enough well paid jobs out there.
@@fernyaldrete1037 One day you'll leave mom and dad and will understand what it means to pay rent and electricity...
@@fernyaldrete1037some of us live in major cities where $3-4K per month is the normal rent for a basic place to live. Not even counting other expenses. If you find a job that will allow you to have 2 years of reserves after paying bills please let me know
@@fernyaldrete1037 I do have money saved up. But I'm also working through a 15 year mortgage and don't want to stop my monthly investments. Paying off a mortgage early and investing early means financial freedom comes sooner. An entry level job is better than none since money is still coming in. It's temporary, but I'd rather not adjust my long term financial plans simply because I don't want to do what it takes.
My dad has worked in the computer science field for 15 years. He can’t seem to keep a job in the past 3 years due to layoffs or contracts ending. Either a company downsizes or only hire him as a contract worker and then decides not to hire him full time or ends the contract early. I’m worried because he should be worrying about retirement not job-searching…
prob not doing leetcode
Sounds more like ageism - tech tends to dump men around late-40s/age-50, and women in their early-40s. Recommend your dad check out the public sector, State/local if he lives near a major population center (or the State capital), or Federal, if he lives in any place with a lot of Fed jobs (not just DC Metro). Public sector tech pays less than private, but is reliable/secure, offers health & pension in most cases, and the hiring process is transparent & skills/experience-based, so none of that leetcode or "culture-fit" nonsense. Good luck from a 25yr industry veteran :)
Maybe your dad is not catching up well on current coding trends. It’s cut-throat out here, I’m burned out at always having to keep up…
@@justwatchingrandomly Unlikely. If it were just about skills, you'd still see a broader age-range of workers, to reflect individual differences in skill-building. Plus in fields where the tech itself is more stable over time, or projects require more experience, you'd expect to see more older workers, not fewer.
The labor stats & employer surveys point to attitudes like yours - assumptions about the capabilities of workers over 40, totally ignoring that anyone in that group went from DOS to Docker. Age is the last "acceptable" bias (except that it's illegal).
That’s what many tech companies are doing contracting for their work force and only management is full time nowadays. I work as a contractor for a prominent tech company and they love to contract workers from other contingent companies to keep costs low. As a contingent contracted worker you’re basically a second class citizen for a better lack of term to use. You get paid 1/3 of what a full time employee would earn for double or triple the workload although ironically being a contractor is more secure. Another hidden reason is that the tech company is one of the few remaining sectors not impacted by unions but that is on its way and tech companies are delaying that as much as possible.
There is a lot wrong with this video:
1. Brittany was fired, not laid off. There's a huge difference so its important to get it straight. She also only worked there for 3 months and was fired after not meeting early performance numbers. This is a terrible example of a tech layoff because a) its not a layoff, and b) its a job in sales, not really tech, and c) she only had 3 months tenure
2. AI didn't take jobs. By CNBC's own graphic and voiceover at 10:14, bulk of layoffs were between July '22 and Jan '23. ChatGPT was released in November 22. And it was no where near developed yet to the point of replacing jobs. That's not to say it won't eventually replace jobs, but just that it isn't why tech layoffs happened
3. Most of these "tech layoffs" are from administrative services for tech companies. For example 1/3 of the Amazon jobs were in HR and recruiting, another huge percentage were sales and account management. When growth and new customers slowed, there is less need for salespeople and account management. When Hiring freezes are enacted you don't need your recruiting teams anymore or anywhere near the HR staff you did before. CNBC should really have broken those out.
4. Elon Musk did not influence tech layoffs. Twitter has been floundering and losing market shared and brand recognition since he took over. Amazon, Meta, Microsoft are not trying to emulate the dumpster fire happening over there.
---
So what's the real reason? Well its basically all explained at 3:03 with the University of Washington professor. Basically during 2020 and 2021, everyone was inside and tech companies started seeing huge growth. So they hired fast while labor was cheap in order to take advantage of the land grab for these new customers. They overhired intentionally because it was better to spend cheap money (low interest) to hold onto good talent to spur growth because there was so much upside. Now there isn't as much upside and the land grab is over. So companies are settling back down into the new normal, and that means readjusting their workforce for long term profitability. During the 2020-2022 era, the companies were not organized for sustainability and profit, they were organized for mad growth. It is just a changing of the economy and companies adjusting to it. No one complained during the mad hiring. But everyone freaks out when it stops and things re-adjust. Its just the counter-reaction to the previously crazy hiring spree we saw in 2020.
It would really have been interesting to see some proper percentages for hiring and firing within the sector. Towards the end they had a guy saying 1% had been laid off, which really isn't much, and seems to contradict the rest of the video.
Well then why are these same companies again hiring in 22 and 23 only to fire them 6-12 months later in 2023 and 2024? I agree with the premise of what you are saying but not the conclusion.
Nobody. Cares.
There is a narrative they need to push
Did you fire her? 😅
As an Experienced Product Manager in tech who's been laid off twice in the past 3 years, this hits close to home. But these layoffs are also a symptom of deeper issues: companies are under immense pressure to show continued profitability during these unstable times, often at the cost of long-term innovation, not to mention basic keep-the-lights on kind of projects. Projects get canceled, roadmaps are deferred, and tech debt piles up because there isn’t sufficient budget or not having enough employees to do the work. This short-sightedness is going to hurt these companies in the long run. AI will not magically make up the difference in the skill gap between experienced vs cheaper/less experienced employees. AI should be viewed as a productivity enabler, not as a replacement to human talent.
That being said, it's still tough to see the human cost of these decisions. Especially when one passionate about a particular industry and constantly upskilling one's self. I predict that AI experience will eventually be considered a basic required skill much like knowing how to use word processors and spread sheets became 30 years ago. Good luck to all in this new tech wild west!
As someone who went through similar things (2 layoffs in 3 year) I get you. I'm now thinking to start my own newsletter instead of working for a company. We should all start a company instead of working for them. We are the ones with skills, not them.
This is probably no shock to anyone but this round of layoff just significantly solidified the change in relationship between employer and the new generation of workers (e.g., millennials, 90s babies). Many of my managers still have this mentality of “stay loyal to the company and you will be rewarded”, but just take a look around. How are we as the young working generation supposed to trust our employers beyond a way to make a living? Sometimes companies complain about workers turnover is high and the young generations “don’t want to work” or “are always looking around for the next gig” but how can we not if we are essentially treated as commodity by our employers
You will slowly learn that people say things to make their own lives less stressful. You must learn to ignore what you are told and do what is right for you. I had similar things told to me, and those people retired and went away. I later realized that they really did not care for me. They just made up some lies so that they could keep their jobs until they retired.
@@ppen8359 so. much. this. never believe the illusion, for that is all it is. you are a line item which can easily be cut, nothing more.
Trust No one. Always do what's best for you and start a business from home. So you always have money coming in. Then what ever happens doesn't bother you much.
"Despite a strong U.S. economy"
Eat glass.
They gotta keep up the narrative or Biden might not get re-elected! /sarcasm
Like we don't go out into the world and see otherwise with our own eyes
@@ChiakiNanami736 Oh, they're only worried about the narrative that democrats actually help people, that literal vegetable wouldn't be able to last until the election's over lol
You know its bad when poor people stop going to McDonalds. Quit looking at the stock market as a measure of how the economy's doing. These people don't have a clue what's coming.
Lol, right? But it's CNBC so of course they're going to push "the message" and pretend that Biden is doing a super duper awesome job!
It's far more profitable to layoff employees and hire new ones at lower wages with fewer benefits than it is to offer them new positions.
This is also true but don't forget that new employees need to be trained and likely will not be as efficient. So there's a tradeoff.
@@Kevin-cf8uubut also these are tech companies that have enjoyed and encouraged their employees to be unproductive. Outrageous benefits and zero accountability. We are just seeing the result now. A classic liberal wakeup call.
The new ones will likely be H-1B.
@@Kevin-cf8uu Have you read a job posting lately? They'll expect a new grad to have 3 years of .NET experience.
I work at a tech company. We’ve found that firing people and replacing them are actually more expensive in the long run due to the ramp up needed to get them onboard. However, these layoffs are unabashedly based on quarterly bottom lines to make earnings and wall street outlook better for their shareholders, which most of c suite has lots of compensation tied into.
Just graduated with IT degree and already stressed with the job market.
Me to bro 🤦
Same here -_-;
That is expected. The first two years, after college, will be hard. School homework assignments are easy compared to what you will have to do at workplace.
I am graduating with a CS degree and I’m already switching to the banking sector as a corporate banker because of the lack of IT jobs
@@drbadzergood call. I'm doing the same but with business administration. There seems to be a clear indication on the only type of people who make money always - and it's those who are lenders/bankers themselves
My father was a COBOL programmer for over 20 years. In 2009 he was laid off. Now he works as a janitor. His salary has gone from $70,000 to $20,000. But he stays positive, works out every days, listens to audiobooks while he works and he has just had to adapt. It's either cope or a rope.
Does nobody want COBOL programmers anymore?
@@adamfrisk956 When dad went into it in the 1980's mainframe COBOL was the rage. Large corporations were paying recruiters a fortune for a good COBOL programmer. These days, there is a little contract work here and there. Frankly outside of India or H-2B visa workers, I am not certain how many programming jobs there are at all any more.
@@adamfrisk956 Companies no, but the govt is paying contractors (individual and 5-10 person companies) millions to upkeep their systems. Especially NASA and the FAA
Cobol -> Janitor. I guess he’d rather clean toilets than program in C++.
@@atul6585 Try starting in a new field at 50+
That tech recruiter and career coach lady is right when she said often layoffs directly point to a failure in leadership strategy. Those people near the top of the corporate ladder who made poor decisions that negatively impacted lower-level people in the company should be the first ones escorted off the premises with their box of belongings. These people cost companies a lot of money not just because of their mistakes but also the high compensations they pull but somehow everyone below them must pay the price for screwups.
A lot of people believe that they deserve a job. Not every person is productive and businesses cannot throw money at people who will not make money for a company. A lot of people lack a work ethic and believe that they should be thrown money at them. I have a strong work ethic and I was unemployed for a while because HR recruiters judged me subjectively based on that I was not tall enough or attractive for such a job or what not. This is the problem when HR recruiters are college women. Today I have a job but it cost me to get it and I do hate seeing people just lazying around and especially younger people who were lucky to have a good paying job as their first with no work ethic and who believe that they only need to show up to work and do absolutely nothing.
@@jacqueslee2592 ok boomer
She's also a co-host on our podcast! Check out our channel. Farah is a former software engineer and she's been surrounded by tech her entire life. She's got a lot to say about layoffs
You do realize the underlying philosophy behind the "profit motive" is MY SURVIVAL AT YOUR EXPENSE. So of course those at the top of any corporation or institution will use their power to protect themselves and throw those with less power out to the wolves.
@@gokuformanvsfood"ok boomer" is generally a shallow, ignorant insult. But this attitude is exactly why it's exploded. Dude just has to gloss over an entire comment section of people with 20+ years of experience talking about getting laid off multiple times, to talk about "lucky to have a good paying job as their first with no work ethic". "Ok boomer" is exactly the right response here.
I just pray that everybody that has gotten laid off and will get laid off has enough money saved and/or find a similar salary job within 2 weeks because it’s sucks losing a job and it’s not your fault at all
Yes the people have been gaslit so hard when it comes to one’s financial stability. You still have to be forward thinking
And not dwell on the past but it’s not fair nor just.
2 weeks highly unlikely. 6+ months is the norm
I can still save and they made more in a month than I do in a year, not to mention everyone knows by now tech is rotten to the core. Sorry but I really don't feel sorry for them.
Let me explain job growth. If I am an employer and I change 100 full time jobs into 200 part time jobs, BOOM! I am a "job creator".
I think it was Bloomberg that reported that the majority of new jobs created in 2023 were part time jobs.
By shifting to part time and temporary jobs, companies no longer have to pay benefits like vacation or insurance.
It is the absolute rule that stock prices increase in tandem with mass layoffs. The stock market is a direct negative image of the real economy and always has been.
Note that over 50% of jobs added in December were government jobs at some level.
What does this do to the real economy? It means lower aggregate incomes and higher cost of living. (Unpaid time off, paying for insurance out of pocket with no employer subsidies).
Less aggregate income means lower consumer spending. Less spending means lower demand. Lower demand means less production required, leading to more layoffs and lower real wages.
Most of the layoffs happening are living wage jobs in tech, medicine, banking, financial services, insurance and real estate. The job "growth" is in low wage service jobs.
So, actually it used to be that a company doing layoffs would see its stock price go down drastically, as investors used to look at it as "if you're laying people off you must be hurting financially and not seeing much growth. Layoffs mean you're scrambling for cash." Laying people off was something a company that was struggling financially would do. So it was a bad sign. A company that had a lot of growth and good financials wouldn't be laying people off.
But somewhere after the pandemic, investors started to see layoffs as "trimming the fat". They saw companies not doing layoffs as "not being lean".
The world is flipped upside down. It's now a bizarro world.
The success story in such situations is to invest when you are young. After about 25 years, corporate profits will raise your investment value. Life becomes very hard for young people.
Consumer spending doesn't go down when credit is freely given.
I remember not being able to get credit despite have a good credit rating. That was decades ago.
Now, college kids carrying debts carrying credit cards.
People are living on credit. Learned lessons from govt.
Eventually, debt will crush both.
Facts, part time is the new American economy.
If layoffs are going to be the new normal, we cannot keep pretending like it’s off hand for someone to be unemployed. We need stronger safety nets for people!
Lol. We need less losers and more people with skills.
@motionsick losers don't fight tooth and nail to get into the tech industry; programming and developing isn't just some kind of coffee job. Know what and who you're really talking about before you open your mouth.
@@motionsickjust scroll through the comments and you’ll see a countless number of intelligent people with 20+ years in the industry who are getting laid off and can’t find jobs. Your comment shows your unawareness of the issue. It’s better to speak with knowledge than with blind emotion.
I know many people who were laid off by profitable companies. Most of them were doing necessary work that will need to continue somehow. None of it was automated.
The only reason I see for these layoffs is that companies want to signal their loyalty to the share price.
Laid off from banking in May. Second time in 3.5 years. I was drowning in work two week before the layoff and was told, “There’s no one else who can do this work.” I’m managing to scrape by doing freelance work as so try to switch careers because I will not return to banking just to be laid off again.
I know for a fact that at least Cisco, fired lots of employees and then went straight in hiring contracting companies from India. Once work went remote, they got a taste of that cheap workforce - it’s not all because they “struggle financially” or something like that, it’s literally increasing their share profits, it’s the only reason. Some companies do struggle, those that strictly grew on Covid demand
That's misleading, ultra ultra low interests rates meant you had an industry that wasn't actually productive, it was a speculative bubble.
My company opened a direct office in India. No H1B constraints, and replacement employees are all coming from there.
my company all Indian and Chinese.
Twitter has triggered what should have happened years back.
The incredible amount of fat that US carries in any ITES company, Jesus.
Yup. My former employer outsourced to India and is now working on replacing those workers with AI. 🙄
Can't deny the fact that Blcktken300 is the strongest bet to bring power back to this industry after we suffered FTX, Celsius, Tera and so on. Sure if they fail it's done for good, but I don't see that the biggest tech company in the world would put everything at risk just for that.
How much were you paid to say this?
They're a bot, don't worry@@akilh340
@@akilh340 Exactly. Another flash-in-the-pan pump-and-dump scam. The brand cannot even be pronounced by human mouths.
@@akilh340 it’s a bot
scamcoin won't make you free. watch out for the mother of all rug pulls
Stop blaming Ai for job losses - that hasn't happened yet
Imagine dreaming to work for AWS. It's one of the biggest sweatshops out there
I just got an internship opportunity there, plz elaborate
@@ultimatefoe1Search "sweatshops."
@@ultimatefoe1Amazon workers are treated like dogs, specifically the drivers and warehouse workers though so you might be fine
@@acraze2287AWS isn't the same thing as amazon's commerce business.
@@acraze2287 work-life balance is still bad for aws employees from what I've heard. a former colleague of mine works there and they have to be in the office 3 days per week now as well.
Layoffs then start hiring a week later is crazy
That’s a common strategy in the tech world. Why keep around a veterans who earns a high salary when you can hire an entry level employee with a minimum salary and then lay him/her off a couple of years later.
@jacobperez8921 it's what happened to me. Except they didn't hire, they just took the junior PM and doubled their workload.
Not re-hiring and just overworking everyone is another strategy. Then call it a labor shortage. Some companies will even interview people but never hire anyone. Basically employees pay for record profits that benefit senior managers and major shareholders. It's a form of socialism. Workers pay investors.
Why not just offer pay cuts to the veteran as instead of going through a whole new hiring process?
@jacobperez8921 then who will train the new employees? New employee, new company, new system and no veteran employees to show them how to use the system and do the job. This leaves new employees frustrated. The few long term employees are left with higher expectations and double the workload
the funny part of the tittle "Strong U.S economy" lol
Fr why is nobody else talking about that 😆
@@murdeybc ur a npc
Let's be honest, the layoffs are all happening at publicly traded companies. A privately held company would more likely be perfectly happy having a few years of low single digit growth and not even think about laying off people. However, with publicly traded companies... if the number's aren't looking good for double digit profit margins each quarter, the big stock owners push the boards for short sighted slash and cuts to keep those stock prices going up up up!
Exactly. Valve ( a private company) hasn't had layoffs
That’s not true. The companies owned by private equity have the same issues as the publicly traded ones.
@@02nupe again I reiterate, valve has not had any layoffs. The closest thing I could find to "layoffs" at valve was 13 employees in 2019. That's a pretty damn small number.
Valve is owned primarily by Valve employees: Gabe Newell still has a 51% share and the rest is owned by other employees at valve. And as far as we know they haven't taken any investments from private equity investors.
Valve doesn't have to answer to anyone but themselves and they're rolling in cash. They have no need for layoffs or investors. This is what a successful company does.
@@lol-xx9kn It's small because valve is small. They only have 400 employees and everyone else is a contractor. Further valve is a horrible company to look at for general industry sentiment. They make billions from counter strike alone each year with their "not gambling" lootboxes they sell to children, then probably tens of billions per year from steam. Obviously a company making billions from multiple projects with 400 people will not have a sizeable layoff, there is no financial pressure even if you paid every employee there 300k/year.
@@lol-xx9knI reiterate private equity owned companies do layoff.
It's almost like the economy isn't actually strong and all the new jobs are part time.
And even still they revise the monthly jobs numbers down a great deal every month, but CNN and MSNBC don't report on that of course lmao
But NBC told me we built back better ™!
Yep
Almost like shutting it all down in 2020 and creating a caste system of "essential" and "non essential" and letting the laptop class dictate everything was a bad idea.
These companies overhired during the 2021 bubble and are now reversing - that's just how these cycles go
Let's see how these layoffs are going to impact unaffordable housing costs when even more workers get pink slips. It's bubble time again folks!
I agree partially, the advent of AI and companies realising its potential is also a big factor especially in tech companies. We'll just see how it turns out in a couple of years..
i still remember tech tok/tech tuber posting contents like "day in my life as a..." back in prime covid days flexing the WFH bliss vs now documenting "watch me get laid off on tiktok" is crazy.
Those people flexing, especially the women, never really did much work so they were the first to be let go.
@@CherryPaupergot a source on that, bud?
@@SylumSolosEverything Simp
@@fernyaldrete1037 shame, I was genuinely looking for a source. I'm not going to waste my time amusing a child, though. I've got better things to do.
@@SylumSolosEverythingActually, it is probably true. Most people who got hired didn't have much to offer. They either got in for the money or the perks the company offers. Not saying everyone had the same intention, but a lot of them did.
I am shocked about the fact that apparently no single person going on national tv for an interview cares about good audio quality on their side. 😅
Layoffs and tax cuts are easy. Growth is hard. It’s a sign of bad managers with no ideas.
What do tax cuts have to do with managers?
@@BradleyRubin b/c when you need to improve the bottom line you can A. Grow Top Line B. Cut Bottom Line. Taxes are an Expense. So you go to the government and you beg them to cut your taxes or regulations to support your bad business model or bail out your poor management decisions and place it on the tax payers. You do this by throwing money at the politicians with a lobbyist and political contributions. That is a lot easier than coming up with a new product or identifying new markets.
Boom 💥 you are exactly right! Experienced this when we got a new CTO, instead of being innovative it was easier to move our jobs to India and cut employees to show profits.
Totally agree. There is no innovation. Publicly traded companies sold their souls to the devil. You are not safe. You can be canned at any moment, they're sell their mothers to make this quarters numbers. Do not delude yourself thinking you have a dream job, a career, or any loyalty. It's a paycheck and nothing more.
What's interesting is that in the case of this woman's layoff, the manager couched it as a "performance" issue, when really, the company is doing this for financial reasons. Why? Is the intent to make the company seem blameless? The implications is that "everything is good here, but you are the problem". I suspect that the real reason for this is that the company is tight on cash and doesn't want to pay out a severance package, as is common for reduction in staff, but just wants to hand her the final paycheck, shover her out the door and be done with it. It's seems like an extremely petty way to manage personnel.
I worked at a large tech company that closed down their entire research and development department by getting rid of the entire building! Talk about only caring about short term gains.
Congratulations, CEO Pichai, you've saved a couple of percent in Google employee costs this year to increase your future employee costs by 10% for the indefinite future. I know many employees who took Google jobs even though they were offered better compensation from other companies, and a key reason why they accepted the reduced pay was that Google was a more stable place to work. These positive feelings about working at Google have now ended, and Google is going to have to start paying full market rate to bring in new talent.
The economy is favorable to those who where able to get themselves into one investment or another, most people see investment as something big they can’t participate in because they’re too scared to venture into one.
Today we have a lot of opportunities to invest in different commodities, stocks, cryptocurrencies and so much more but some people just sees this as a challenge and shy away from it
So true, thanks for bringing this up to my notice, the truth is this economy wouldn’t be so bad if people indulge themselves more with various investments rather than just depending on their stipends and savings, because the economy wouldn’t always remain as it was
The philosophy of the rich and the poor is this
" the rich invest their money and spend what is left, the poor spend their money and invest what is left"
Poor people think about what they can buy with their money, rich people think about what they can invest in with their money.
Because of the economic crisis and the rate of unemployment, now is the best time to invest in crypto and make money 💯. But you have to invest with the right broker. Anyone here that Know more about crypto currency let talk more about it
There are series of distinct market phases that occur between the market peak and low
Naturally, there's a lot of math involved in crypto/forex trading. but this is often presented in forms of daunting technical charts, indicators, patterns.
There used to be a time when large numbers of expensive people were hired to handle one project. This is no longer the case, jobs are paying less, and requiring you do more.
For every one job in USA, Google has 3 internal google employees in India. Meanwhile majority of their employees in USA are temporary contractors.
Google Layoffs in the USA.
While the tech sector is shrinking in USA it's growing in Mexico and India. For the cost of a recent CS grad in the US you can grab 3 experienced engineers in one of those countries
@@RoboRoby321 Right but eventually this layoff situation will affect those countries too. It's the same way gentrification works: find a destitute area, secure the majority of that area, then facilitate appreciation until it reaches the cost/profit threshold, and then divest. Locate another area and repeat. Only here it's a labor force instead of property; eventually the growth will make payroll "untenable" for the companies and they'll look elsewhere again.
@@Theomite
Bang on. It's only a matter of time.
@@TheomiteI do not think they will go elsewhere because the number of IT graduates in India will keep costs low in India. I do not think there are countries with such huge skilled human resources supply.
Making money is not the same as keeping it there is a reason why investments aren't well taught in schools, the examples you gave are well stationed, the market crisis gave me my first millions, people shy away from hard times, I embrace them.. well at least my advisor does lol.
Hello, I’m 46 and I am not worth much yet , please help me out. Bought my first house last month and I can't seem to make any other smart investment.
wanted to trade, but I got discouraged with the market price fluctuations
Can you recommend a guide for me?
AI isn't the cause of the job cuts, rising interest rates are. The whole idea that you can get AI to replace someone that is making 300k is just flat out incorrect. These people don't have a clue what they are talking about. Are some very low easily automatable jobs being cut, probably but certainly not a high skilled 300k skilled worker.
There isn’t a “strong economy” we are in a recession.
I come from a country with over 10 years recession, trust me there’s no such thing happening in US.
Well i dont trust you and also, there is 100% a recession occurring depsite you not believing in it.
Take a look at the stock market. The 1% is doing gangbusters. They take 25% of the entire income, pay on average 19% in taxes, and have more wealth than the bottom 90%. THAT'S where your money is going and has been going increasingly over the past 40 years.
Shhh, you’re gonna upset the liberals, they’re trying desperately to make it seem like Bidens doing a great job
@@Veintitres___23 you clearly don't know the definition of a recession.
My advice: work for small companies where you have opportunities to create relationships with supervisors and leadership. The trust you build with them and they build with you will help you during lean times.
Honestly I appreciate you and your content < Technical Analysis is good but I find It truly baffling that major crypto youtubers just look mostly at pure T.A and completely ignore the bigger narrative of why BTC is pumps/pumped and why the future outlook will be even rosier than it seems. It's kinda irresponsible to ignore the fact that each ETF launch so far has caused a major dump at the peaks of BTC. We were already on shaky footing with historically low volume and almost pure whale pumps,narrowly avoiding a long-term bear market. More emphasis should be put into day tradiing as it is less affected by the unpredictable nature of the market. I have made over 12 btc from day tradng with Blcktken300 insights and charts.His been one step ahead of other analysis..
Tech is a boom bust career. You got to save like crazy when it is booming so you can retrain and reposition yourself when it is busting.
Yep, one moment everyone wants you, next moment no one does. Make hay while the sun shines...
A single minority shareholder is worth more than a thousand employees.
Unless shares drop in value. 1999 baby!
That's how this economy works, unfortunately, when, in fact, it is the worker and the consumer who are the blood of ANY company. When companies maximize shareholder interests, quality goes down, employees suffer and society suffers, in turn if every business does it.
The last video on @HowMoneyWorks here on YT is about that ("The Dumbest Business Idea in History" on Feb 19, 2024).
If the share price drops CEO s will just lay off more button pressers
@@BarAlexCwell if quality goes down beyond a threshold, people stop buying and the line of business goes belly up if not fixed. It's self correcting if 'free'. Unless you have regulations that mandate a product.
@@francisravenscroft-dw6githe share price drops because of a lack of profitability. One way would be to reduce costs. One option is layoffs but good companies don't like doing that much because you have to rehire and train for growth. If you're laying off under performers, that's a good thing.
If you contribute towards an environment where people are afraid to spend because they feel they may be next then you cannot really complain that not enough people are buying your goods and services
institutional buying into Blcktken300 could totally break the cycle and the peak expectation of end of 2025 will likely spectacularly fail to appear. If the last double peak was odd, the next one will catch most people out again.
Scam
Beware of this bots, human. Be smart. This comments are scam
New rule should be if a company does mass layoffs, the current board, and executive should be fired also for bad leadership with no golden parachutes.
In 2008/9 they laid off people, tanked the economy and taxpayers bailed them out and paid their bonuses. The Economy is rigged.
my dad works in a large tech company in texas and he is at director level.... Do you think that managment level dont have bills too!? our bills are way bigger than yours, i live in a 5 bedrooms home and have 3 cars how do you think my dad going to pay those bills if they lay him off!?
At the very least it should be no bonus and returning a portion of their stock options.
Nope that rule will never happen. It makes too much sense.
@@ghosthdel3098 Maybe he should have built up a nest egg instead of buying cars he didn't need and empty bedrooms that increased his mortgage.
Let's discuss the Blcktken300 guys. This is failproof and barely any asset can be labelled failproof at all.
Stfu with this scam
Bot
These are real humans with families mortgages and education loans. We have got to stop treating humans like machines! I’m sick of this bullsh!t.
Everybody is told tech jobs are great paying jobs and there’s plenty of opportunity. So there’s always young, new and cheaper employees for tech companies to pick from. There’s not enough jobs in the world.
The economy is not strong. That's why there are cuts. There are a lot of people working very hard to manipulate the data to make everyone think nothing is wrong.
IT is the worst field to break in to and has been for awhile. Oversaturated job market means employers will have their pick of talent at their price point. There is no leverage for an IT worker now.
A basic misunderstanding most people have is that stock price is an actual reading of the economy. It is not. It's a reading of the whims of the investor class and CEO compensation. Using layoffs as a means to boost stock price only makes stock holders money. It does nothing for the companies involved. But the layoffs do have another affect: cynicism. The PEOPLE being laid off will carry that shame and hurt and financial devastation for a long time. They make carry a sense of cynicism for work maybe for the rest of their lives because companies have shown that their labor is worth nothing. Manipulating stock price by laying off people is cruel, one could even say evil.
Blcktken300 gang in the house! Thanks for the analysis!
bot
I’m super skeptical about investing/ contributing 400k to my portfolio after being in the red for so long. Honestly don’t know how to go about this.
I completely understand your concerns. But In this current unstable markets, It is advisable to diversify while retaining 70-80% in secure investments. looking at your budget, you should consider financial advisory.
I agree. This is why having the right plan is invaluable, my $210k portfolio is well-matched for every season of the market and recently hit 40% rise from early last year. I and my CFP are working on a more figures ballpark goal this 2024
Pls can you recommend this particular coach you using their service?
NICOLE DESIREE SIMON is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Thanks for this. Found her and looked through her credentials before contacting her. Once again many thanks.
Because there are no worker protections or real labor rights in this country. This kind of sh!t did not happen before and does not happen in other countries. It used to be a sick joke in dystopias that a thousand people could be fired for no reason other than the vicissitudes of the market or a company's bottom line.
Not just the tech sector, all sectors are being affected due to high interest rates! Company could no longer maintain their margin of profit like before. it will only continue to become worse until the Fed is smart enough to lower interest rates.
I said this before. It sounds crazy but if you make it mandatory for an employer to pay someone’s salary for 6 months if they laid them off. I can guarantee that these layoffs will happen less.
Overseas engineers I think will effect more then A.I. They have similar skills but demand less then half the salary.
100% Why hire a US tech engineer when I can get one from an oversees company ...it is all remote anyway ....and if that isn't cheap enough we will us AI....Just a matter of time before universal income gets put on the table and everyone is living under a bridge and eating beans in a can.
@@Antonio-ti2he😂😂😂
People have been saying overseas engineers will take all the US jobs away since the year 2000. There's nothing new about overseas work that wasn't true 10 years ago or even longer. If overseas engineers were going to take all the jobs, then they would have already, especially during 2020 when there was no state-side talent to hire.
@@JAlexanderCurtisMillions and millions of jobs have gone overseas. That is absolutely where many jons have gone and absolutely a significant factor in suppressing wages.
@JAlexanderCurtis when you blatantly lie on the internet
The surrounding economy of non-tech jobs has definitely been affected by these layoffs. I couldn't find work for 6 months because these cafes and restaurants and shops in the bay area relied on the business from these tech employees. Once they stopped coming in because of their layoffs, business began to plummet. And businesses were no longer hiring.
This is the third video that I've seen on economic growth and they all start with the phrase during the pandemic during the pandemic during the pandemic during the pandemic stop blaming the damn pandemic for it! That happened three years ago 4 years ago however long it was ago the reason why you're laying off people is because you're cheap and you don't want to pay anybody! Cut the BS
What people aren’t talking enough about is how tech companies realized they can lay off what they consider “the fat” of their employees in one or two big swings a year and hire cheaper talent. It’s why Cloudflare laid off those people and two months later began hiring many of those same roles again it’s happening at every tech company. Now I understand why you have to get rid of weak employees the issue is this removes the responsibility in these tech companies from hiring the “right” people (often they give you 3-6 30 minute calls, hire you, give you two weeks of “enablement” and kick you off to a manager who may or may not be good) which is the other area of responsibility not addressed they have many middle managers that ultimately serve little purpose who can easily point fingers to save themselves. Regulation needs to be made where fortune 100 companies have some sort of federal freeze from rehiring positions after a layoff. I guarantee companies will spend more in making do with what they have and rely on the right way of firing people for being the “fat”… which now creates responsibility on everyone’s count
Did the thumbnail actually say "strong US economy"?!?! 🤣🤣
Low unemployment, record stock markets, strong housing market, inflation almost back to target
no recession.
Yea by all measures it is.
@@Corgiking521 I live in the real world and inflation is still just as terrible as it has been or worse. Also, I'm in real estate and the housing market is a nightmare. Time to poke your head outside for a look.
@@J03Y27 Sadly the economy is largely dictated by commerce and growth of the stock market and strength of the US dollar.The rich are swimming in cash while the working class are breaking their back and feeling the hurt.
@@CaBdosdos Well yeah...
@@Corgiking521 Care to share some of that crack you're smoking?
I often think of going back to school to finish my accounting degree, but after this A.I. stuff, I'm not sure anymore. It's scary.
Accounting, they fire you right after tax seasons so they do not have to pay for bonus.
Every sector has its problems. But AI won't be taking over accounting any time soon: AI is extremely unreliable and prone to making up facts.
Forensics Accounting, yes! You don't need a degree. Waste of time. Just invest in the certifications.
This is so dystopian. I fear for our future when tech companies create even more billionaires and people are struggling to keep a job.
The US economy is not strong. Get on a job database and then filter out the jobs that don't pay a living wage. You will have culled most of the database with that simple query. The fact is there may be a ton of jobs but they pay pennies. There is a huge lack of decent jobs. You have a nation of people doing gig work trying to feed themselves and their families while companies are raking in record profit.
There will be textbooks written about today in the future.
Billionaires deeply care about you. No, not really.
I do care about the bees on my range, bees are very helpful, they keep me flowers growing. But I do not care about a single, particular bee, unless it's a queen.
My Retirement investments have prospered because of Sir John Desmond Heppolette's supervision. But it's important to remember that the quantity of capital invested ultimately determines rewards. A large start-up cost increases the likelihood of bigger returns....
Johndeshep934
He's verified..
He´s mostly on telgrams with the user above..
John Desmond Heppolette's approach is pivotal for achieving success in the realm of online commerce. His management group has showcased outstanding effectiveness, and I also value the content available on his TH-cam channel...
John Desmond Heppolette truly appears to be knowledgeable in this field. After conducting a Google search of his full names, I thoroughly reviewed his web page, including his resume, and qualifications, which were truly impressive. I took the initiative to leave him a note and have booked a call session with him....
A LOT of people got laid off in 2007-2009. Many of them started their own companies. Get your hustle on, and never answer to a corporate boss ever again.
Here is my tip for companies in 2024: Fire non technical and non functional personel like scrum Masters and put project managers on 5 projects in a week instead of full time on 1 project. These people really add nothing to development maybe 4-8 hours per week of helping people.
I am an architect who migrated to technology looking for better career opportunities and a chance to imigrate and in 3 years I was laid off twice and am currently unemployed, while NO ONE in my architecture network is unemployed or was laid off, many of them didn't even know what layoff meant. I'm really questioning my life decisions right now.
6:46 Thank you! Finally someone talking sense. Over-speculation and improper reporting surrounding AI is going to cause a lot of harm.
"In my experience the public sharing of things like one's layoff, I think is partially due to the fact of the rise of social media."
EXCELLENT commentary CNBC, mainstream media always finds such insightful experts.
Don’t go into tech sales. It was ALWAYS normal to shed anyone who isn’t an absolute over performer. Average is already dangerous and will keep you nervous 24/7. The „new“ normal is just that the bar to keep your job gets significantly raised.
Better to create an AI app that will do all the work of CEO and HR..
we are. the first HR to replace are recruiters. they are going AI. your internet presence is now their eyes. Google probably will be the best in this.
Strong economy? What are you guys smoking?
Because they have been focused not in technology but psychology.
I really wish CNBC would require higher quality audio and video from the people they interview in these segments. Some of the cameras and microphones used are not good and shouldn't be broadcast with.
Brittany was a Musician working as a “Account Executive” at Cloudflare, she was not a “Tech worker” per say. If you are a Software engineer with a solid academic background developing serious software, your job is secure. AI is very far away from replacing your job. And when the time comes, I can assure you, you will be the only one able to interface with it to develop the things you develop today.
I have a solid university degree in stats and I haven't seen any layoffs...yet
I work in tech, If we axed 60% of the team we still be fine there a lot of slackers in tech.
What I don't understand, is why they are laying off Trust & Safety team members, who were spending many hours, weeks, months, years building GREAT software - designed to mitigate spammers/scammers & the like. Even TOP EXECS in these departments are being let go, once they offer solutions to the privacy crisis, & all the recent ongoing data breaches!!
If its rough for TOP EXECS in these fields, how is there ever again gonna be any hope for those of us in the entry levels , just trying to break into & somehow stay, in the industry!? That's freakin SCARY - for those in the industry, as well as for users who have their data compromised on an ongoing basis!!
It's like they make more moolah, stock goes up; but the garbage still runs rampant - accounts still get hacked - users' data still gets stolen or compromised. And nobody is staffed to work, to stop it from happening, or fix it once it does!!
Uh... that girl at the beginning of the video didn't get laid off. She got fired. Whether she deserved it is a different story, but when you're told that you haven't met expectations, it's not a layoff.
I wasn't financial free until my 40’s and I’m still in my 40’s, bought my third house already, earn on a monthly through passive income, and got 4 out of 5 goals, just hope it encourages someone's that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made.
vanity, 3 houses 1 grave, not impressed ..!!!😮
Wolf of Wallstreet said otherwise: it's a game rigged by brokers whose fees take most the gains .
and then bitcoin: now there's a pyramid scheme based on vaporware.
AI usage should be taxed strongly….