Why Tech Companies are Laying Off

#shorts
Tech companies usually over-hire during a boom in the economy. While this is great for developers, when the tide shifts, they are quick to fire people. Why does this happen though? People think if they throw twice the amount of developers at a problem, the output would double as well. We know that isn't the case. Moreover, they rush new developers to build features which in turn causes a lot of untested code and technical debt. In the long term, this almost never works out and results in layoffs.

[SivaKumar-dwzf]

First the senior management should be fired for lack of business insight or strategy.

[gautumb]

Most senior managers are a complete waste of 6 figure salary per month.

[David-vqqg]

That's basically all the major tech companies

[JohnS-ildr]

The "Day in the Life" people definitely needed to be fired.

[nishitamsuresh]

It has more to do with the Bank interest rates than these reasons. They hired when the interest rates were really low and are now letting them go when the interest rates have gone up.

[kehugu]

This sh*t is happening almost everywhere these days. People work till midnight to complete their task, but when it comes to quality it is so poor costing the company big time.

[Sass]

I just got my notice from the company I work for. The good thing is that they are giving us until the middle of January.

[unlurn]

Tech companies are laying off because FED has increased rates so that it can take back excess money from the market and lower inflation. Since access to money has become expensive many businesses won't make sense and since tech companies are highly exposed to easy money they loose their jobs first.

[mmathems]

It's an issue of management that all start-ups should take heed to, otherwise it could be the direction and the next steps ... Hiring criteria 🤔

[tusharmistry]

That might b situation for product based companies.... Service based companies cant operate with lower workforce

[thecowegg]

Don’t take things for granted, long story short 😊

[mynameisdrpat]

It is just a trend. Those fired will easily find other jobs due to their skills. Later on when the economy is good again these companies will repeat the hired process. Rinse and repeat.

[rshinde]

Very well said .... Har koi recession ka dar dikha raha hai

[raymondsmith]

Well. That's why you have need to own assets that pays passive income. Use them like they use you. You that income to build while you can until you have enough to be on your own. Then leave. What is crazy is this is happening to some of the smartest minds. There is no such thing as loyalty unless you own the stock. These companies have to answer to them.

[mishrajii]

Seniors p action lo na..galat decisions lete hain and maze m rhte hain(only for those who took this wrong decision...good management is also there somewhere)

[stephentelford]

Share Price falling. Investors panick. Company layoff staff. Share price increases. Tech job layoffs for idiots. Zoom CEO Takes A Pay Cut After Laying Off 1, 300 Employees And Sends Stock Price Soaring—Earning Him More Money

[ajaykashyap]

Its really hard to get the big picture being at the low/mid level. Too many variables like market conditions, ever changing client requirements, attrition etc etc. A leader who is aware of this should take responsible decisions for a smoooth sail.

[சர்வம்_சக்திமயம்]

Yes now a days most of corporate doesn't know how the management to be ..
in my company they hired us on 3 month before and we are basics in coding.. But they told us to be full-stack but being full stack is tough to us and so they kept test and fired.. 😢

[innocentboy]

Could you please let us know which companies they are

[kesayo]

One thing I’m noticing is the hiring of AI, ML and data scientists without actually knowing how to interview them or knowing how to use them. People are just creating AI or ML teams and hoping to see some benefit. But when nothing happens because most of these people in these areas actually don’t know anything and just took some classes in it, the companies end up laying them all off.