Every day there’s more big job cuts at tech and games companies. I’ve not seen anything explaining why they all seam to be at once like this. Is it coincidence or is there something driving all the job cuts?

  • Lauchs@lemmy.world
    0·
    11 months ago

    A few things happened pretty quickly.

    During the pandemic, tech profits soared which led to massive hiring sprees. For all the press about layoffs at the big guys, I think most still have more workers than they did pre-pandemic.

    Interests rates soared. Before the pandemic interest rates were ludicrously low, in other words it cost almost nothing to borrow money. This made it easier to spend on long term or unclear projects where the hope seemed to be “get enough users, then you can monetize.” Once interest rates rose, those became incredibly expensive projects, so funding is now much more scarce. Companies are pulling back on bigger projects or, like reddit, trying to monetize them faster. Startups are also finding it harder, so fewer jobs.

    And of course, AI. No one is quite sure how much that’ll change the game but some folks think most programmers will be replaceable, or at least 1 programmer will be able to do the work of several. So, rather than hire and go through everything severance etc might entail, I think a lot of companies are taking a wait and see approach and thus not hiring.

      • anarchost@lemm.ee
        0·
        11 months ago

        I’m here to repeal and replace good things, and I’m all out of “replace”.

        • Donjuanme@lemmy.world
          0·
          11 months ago

          Let’s not throw the baby out with the bath water. AI had the potential to alleviate a lot of pressures of society, to free up much of our time spent doing tedious mindless tasks. We just need to make sure to use it for the benefit of the many rather than the profit of the few. I don’t want a union that wants to keep labor busy and well compensated, I want a union that keeps people safe, happy, and compensated properly

          • anarchost@lemm.ee
            0·
            11 months ago

            We’re like a century past innovation making our 40 hour work week into a 20 hour one

            • rwhitisissle@lemmy.ml
              0·
              11 months ago

              I fully believe we’ll get a standardized 60 hour work week before we get a 20 hour one. Hell, I’m pretty sure we’d relegalize slavery before we get a 20 hour work week. Your average American will bend over backwards for a chance to please “the boss” and actively rat on their colleagues for avoiding work because our cultural understanding of loyalty is functionally equivalent to boot licking.

  • MajorHavoc@programming.dev
    0·
    11 months ago

    It’s interest rates.

    Loans are more expensive, but critically, so are eggs.

    Tech workers like eggs, and see no reason to buy fewer, so they’re asking for more money, unionizing, or hopping jobs to increase their salaries.

    Notice how the big players are releasing press releases each layoff? No attempt at secrecy. No payouts to NDA the laid off employees. It’s an intimidation tactic.

    It’s working at the moment, but tech workers get over their job change discomfort fast when there’s a 100% raise on the table. The market rate vs curent pay gap just creates pressure to change jobs until they do, even if they’re scared.

    And the shareholders are all fucked.

    Every tech layoff is a lottery ticket toward a company ending event. And then every employee who leaves because they realize the company is incapable of loyalty. Then every worker who leaves because their suppressed wages aren’t keeping up with their expenses or hobbies. Another chance to end the company. Nobody knows which perl script is the lynchpin of their company, or which random person will leave with all knowledge of it.

    The CEOs are positively aggressively collecting chances to bankrupt their shareholders.

    But the CEO will get a nice payout next quarter. So that’s nice.