If you ask the average FAANG employee whether layoffs and cuts make sense now, you’ll get a straight “no”.
Just like Amazon workers were “appalled” with the corporate announcement of 5 days RTO and leadership PR announcements.
The disconnect between staff and public tech companies is growing larger. Why?
Because the honeymoon period is over.
Not a single employee want to go through layoff rounds. It’s painful, stressful, disappointing, embarrassing.
Nobody “deserved” it.
In some cases, companies report record high revenue quarters… And cuts get announced anyway.
Is it fair?
Depends.
Public companies serve their boards and investors.
All the “happily ever after” talk is only valid when alignment between employee productivity and investor support is in line.
And in bull markets, that also results in:
– Overhiring
– 20% pet projects time
– Endless office perks
– Top tier salary ranges and equity
Nobody questions corporate decisions and talks about management layers or overstaffing with regular checks coming in.
But in bull times, everyone is hiring. It’s about protecting hires from working with the competition. Keeping face for PR and employee awards. Securing applicants pipeline and Glassdoor ratings.
Plenty of companies struggle hard since 2023 – but most of the tier 1 tech corps are doing fine.
Yet, they can do better in a less competitive economy.
– Lower salaries
– More billable hours
– RTO
– Fewer perks
– Higher margins
– Fewer pet projects
It’s a demand and supply question across the entire market: other tier 1, the rest of the tech, local companies.
If Google, Amazon, Microsoft. Apple can pay 90% less and get 100% more consistently over the next 24+ months, and hide behind “investor intentions” as a justification, will they do this?
That’s the global macro question everyone forgets to ask early on.
Bottom line: trust employer branding less and study global markets more.
