Why Are There So Many Tech Layoffs? A 2024 Deep Dive

**Why Are There So Many Tech Layoffs? A 2024 Deep Dive**

In this excerpt from the Circuit Pulse Show (full episode below), hosts Inga and Joel wade into the troubled waters of tech layoffs, starting with Google's March, 2024 job cuts. From Google, the pair shift from significant job cuts to broader industry shifts, where they explore the underlying causes and what the future holds for the tech sector.

Why are companies like Google, which continue to post profits, reducing their workforce? What role does AI and economic shifts play in this scenario? How about post-pandemic leveling? Join Inga and Joel as they attempt to answer WHY ARE THERE SO MANY TECH LAYOFFS?

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0:00 Intro
0:37 The Google Layoffs
6:37 Mark Zuckerberg & AI
10:13 E-Commerce Sales Leveling?
12:52 Why Are There So Many Tech Layoffs?
14:20 A Strong Economy, but Still Layoffs
21:11 Tech Industry Job Opportunities & Diversification
24:17 When Will the Tech Layoffs End?
26:51 Outro

[RoninX]

Def agree with Zuch on the over-hiring. Cheap easy money with low interest rates and such, companies expanded like crazy.

[prometheus]

As CEO you would want to send the work to the people who cost you 50% of what you're people paying in America. That way you'll have more money to deal with your regulatory problems. Why is that so hard to understand it's simple math?

[c]

It happend also in 2008, IT projects were first placed on hold then migrated to low cost. Is just the economic cycle, jobs will pick-up again when interest rates will go down.

[_xplits_]

What are you talking about getting jobs back in 3 months. That is not what is on the ground. People who are laid off 2022 are still looking. its insane out there.

[davebelter]

At some point a business must efficiently deliver growth. That means profitable growth. tech companies historically focused on growth but as business matures business must continue to innovate, grow and do it profitably. Without profit there is no business.

[mcleanblades]

I doubt that how you look at it is at all related how they look at it.
I know this is cruel. But you don't know what you're talking about.
The Tech industry has had six months of layoffs and declining investment.
That more layoffs are happening is nothing new. Customers are spending less due to the bad economy. Google gets suggestions for work and maintenance from many sources.
They create a list and leadership prioritizes it. Engineers and Project
Managers SWAG estimates. Sometimes they build proof-of-concept projects to
fine tune the SWAG. Then they match their talent to the highest priority projects.
Sometimes there is a political element to who is assigned the work - say -
they might want to keep particular teams in India or Palo Alto busy - but
usually they allocate the work to teams with the most experience and the
best track record of accomplishing previous work.
Other considerations when selecting teams include individual skill sets,
technical debt (required maintenance), EU privacy legislation
and leveraging new technology (It might be 3rd party). You might imagine
that American talent is superior to Indian talent. It's not. It's not worse
either. America is more expensive though. Like you said though. Google can
afford it. They don't always choose the cheapest team. Now...
Eighty percent of google Engineers in Palo Alto are
foreign born. Even in America Business Analysts typically speak English as a
second language. Speaking and writing English helps tremendously
when it comes to writing requirements and modeling applications.
But good English is not necessary - Thinking and communicating are what matters.
So there's no American advantage there. Indian workers have the luxury of not being interested in American politics. Sometimes that makes them easier to work with.
Selecting US or India - always it comes down to who can do what and business priorities . One thing off shore engineers have going for them - is that the ratios of candidates submitting resumes is ten to one. (Offshore to American)

[dinoscheidt]

15:50 not sure how I landed here… but you all noticed that from 2022 to 2023 interest rates went from 0% to about 5% in the US, Europe etc to combat inflation? There isn’t much more to read into this, than if you would want to save a penny yourself today… you would probably ask of higher return from a business compared to safely parking it in a bank. That was a very low bar for the stimulus years (attracting shareholders), now the minimum is making 5 cents on the dollar…. which many businesses, tech or not, are scrambling towards. Not some mythical culture thingy change

[sunwado]

Study David Harvey and he will give you more answers. As Americans better fight for your jobs.

[jonnybike]

Well California is crazy with there laws and cost of living.

[victorzagrebin]

The wise discuss ideas, the smart discuss events, and the foolish discuss people. ( Tolstoy ). Dumping works as long as the total amount of money in this sector of the economy is not enough for participants. Dumping extra participants under contraction in the money supply is a temporary economic instrument. The winner here is someone who has unrestricted access to credit money for a smaller percentage. It does not need to continuously cut costs and squeeze out the company’s internal reserves. This is macroeconomics. Not development or microeconomic business.

[jonathanvandenberg]

Simple. Why pay 100k when you can pay 50k or 30k for the same quality? And no obligations to health and benefits etc.. It all comes down to money. The Tech industry is no different that any other business.

[mjwmontgomery]

Bidenomics is the main reason. AI is not a major factor yet.

[grtinfulleffect]

They SAID Mexico and India but let's see where the real numbers land.

[richardfrench]

the Tech Bro are getting what they voted for...good and hard.

I am really, truly sorry.
Signed
MAGA at the Beach.