Complex internet services fail in interesting ways as they grow in size and complexity. Twitter’s recent issues show how failures emerge slowly over time as relationships between components degrade. Meta’s quick launch of Threads demonstrates how platform investments can compound over time, allowing them to quickly build on existing infrastructure and expertise. While layoffs may be needed, companies must be strategic to maintain what matters most - the ability to navigate complex systems and deliver value. Twitter’s inability to ship new features shows they have lost this expertise, while Threads may out-execute them due to Meta’s platform advantages. The case of Twitter and Threads provides a lesson for companies on who they want to be during times of optimization.
Thatsva tidy narrative there. Is there a correlary for the other 140k+ layofffs from the 2nd and 3rd tier tech companies that followed the lead?
Another tidy narrative is that these tech companies, besieged by pesky overworked employees who kept trying to unionize and demanding higher pay, decided to teach them who is in control.
Almost the same time all these “unnecessary” people were let go, these same companies ramped up their H1-b visa hires. Hmmmm, coincidence? Maaaaaayybe! It’s odd that some of these firings happened as unionization gained momentum. There was a time when that was illegal.
Sure. Let’s see… There’s this: Tech Layoffs Likely Pose No Deterrent to Record H-1B Visa Demand
Continued growth in H-1B registrations despite mass layoffs undermines the idea that the demand is based on labor shortages, said Ron Hira, an associate professor of political science at Howard University.
Tech workers willing to rake lower pay
This illustrates how widespread these layoffs are: More than 219,000 global tech workers have lost their jobs this year
In every other industry, hiring continues to be robust, yet pretty much the entire tech industry is in a depression. Why? Even the companies having “weak” earnings last quarter continue to do well financially.
Outsourcing hubs like India to bag 30% to 40% of jobs lost to tech layoffs
Big tech doubles down on union busting as labor movement intensifies
Thanks.
Again though, I think the why’s point back to the same thing.
Salaries in tech in the US has been boosted by ridiculous high demands.
Accountants don’t understand that skills and knowledge is something you pay for and just see that one dev in India costs 1/5 of one dev in the US.
Heck, even I’m cheap compared to the average US devs and I live in Norway.
But why do all these other companies do the same thing? Because they’re bandwagon companies. If FANG does something they’ll do the same.
I also read once that recessions hit the tech industry first, but it also bounces back first.
If that’s correct I have no idea, and I’ve yet to go through a proper recession in my career, but it’s definitely clear that we are busy making one.
All the companies going like “we need to be inflation winners”, I know mine does.
As for outsourcing to India, that always goes in waves. Hard to build good tech there. It’s only cheap in the beginning. Too much instability and job switching.
