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Silicon Valley hiring freezes and layoffs


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2022 Jun 12, 12:46am   2,132 views  29 comments

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https://www.msn.com/en-us/news/us/silicon-valley-braces-for-tech-pullback-after-a-decade-of-decadence/ar-AAYlhX9?ocid=uxbndlbing

After a decade of exuberance, Silicon Valley start-ups, venture capitalists and established tech companies alike are cutting investment and firing workers, prompting some in the tech world to openly predict a U.S. recession is on the way.

Facebook and Amazon have slowed their frantic hiring paces, while highflying newer companies including scooter company Bird and email client Superhuman have laid off workers. Tesla chief executive Elon Musk recently told employees he has a “super bad feeling” about the economy, and venture capital firm Lightspeed Venture Partners warned in a blog post that “the boom times of the last decade are unambiguously over.”

On Thursday, fashion tech company Stitch Fix said it was cutting about 15 percent of salaried positions, or a total of 330 roles, sending its stock price sinking. The people losing their jobs were told that morning, chief executive Elizabeth Spaulding wrote in a memo to employees.

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1   DD214   2022 Dec 22, 5:08am  

Tesla (TSLA) to implement hiring freeze and new round of layoffs, 1st quarter 2023

Tesla (TSLA) has told employees that it is implementing a hiring freeze and confirmed that another wave of layoffs is coming next quarter, according to a source familiar with the matter.

https://electrek.co/2022/12/21/tesla-tsla-hiring-freeze-layoffs/
2   Al_Sharpton_for_President   2022 Dec 22, 5:20am  

Useless eaterz:

"We create, deliver and work toward a more equitable and sustainable world—we inspire and drive change across our industry and communities through our resources, influence and innovation."

"Advancing equity
We recognize the responsibility, power and opportunity we have to advance equity by focusing on race and its intersections with other aspects of identity. We acknowledge and embrace difference, and design everything we do with the understanding that diversity makes our work and our world better. (Translation: We have clothes for Fat Big Ass Women."

https://impact.stitchfix.com/
3   zzyzzx   2023 Mar 20, 11:06am  

https://finance.yahoo.com/news/amazon-to-cut-9000-additional-jobs-after-laying-off-18000-in-january-150551180.html

Amazon to cut 9,000 additional jobs, after laying off 18,000 in January

The new layoffs will mainly hit the company’s AWS cloud services, its PXT division, advertising, and its Twitch online game streaming platform.
4   zzyzzx   2023 Mar 22, 11:01am  

https://www.thestreet.com/employment/leaked-documents-show-amazon-made-an-enormous-mistake

Leaked Documents Show Amazon Made an Enormous Mistake

In the case of the web services team, when all was said and done, Amazon had listed approximately three times as many open positions as were approved by the company. The utility computing team, for example, posted 24,988 open positions in 2022, but only 7,798 positions were approved by the company at large.

The document asserts that the company left hiring practices up to individual managers and that the lack of oversight resulted in "a process prone to inconsistency, error, and potential misuse," including "over-hiring," the document said.
5   Patrick   2023 Mar 22, 11:15am  

There are a lot of reasons things are turning to shit, like stupid foreign wars and the existence of the Fed, but the biggest cause imho is the whole plandemic and its use in the election theft of 2020.

They literally chose to burn down the economy rather than let Trump's economic successes continue.

Our government is rotten to its very core now, with a criminal incompetent occupying the White House, and all of the corporate media and academia enthusiastically supporting the massive election fraud.
6   Eric Holder   2023 Mar 22, 1:44pm  

zzyzzx says

https://finance.yahoo.com/news/amazon-to-cut-9000-additional-jobs-after-laying-off-18000-in-january-150551180.html

Amazon to cut 9,000 additional jobs, after laying off 18,000 in January

The new layoffs will mainly hit the company’s AWS cloud services, its PXT division, advertising, and its Twitch online game streaming platform.


Doubled in 4 years:


Amazon total number of employees in 2022 was 1,541,000, a 4.17% decline from 2021.
Amazon total number of employees in 2021 was 1,608,000, a 23.88% increase from 2020.
Amazon total number of employees in 2020 was 1,298,000, a 62.66% increase from 2019.
Amazon total number of employees in 2019 was 798,000, a 23.24% increase from 2018.
7   Patrick   2023 Mar 22, 8:45pm  

Patrick says

They literally chose to burn down the economy rather than let Trump's economic successes continue.


https://palexander.substack.com/p/fauci-that-little-malfeasant-lilliputian


Fauci, that little malfeasant lilliputian, worked with scarf lady Birx & guitar man Francis Collins to burn Trump's economy to the ground!
8   BayArea   2023 Mar 22, 8:51pm  

Incredible the financial success I was fortunate to enjoy while Donald was in office… not since
9   Patrick   2023 Mar 22, 11:43pm  

Same here.
10   Booger   2023 Mar 23, 2:06pm  

https://www.zerohedge.com/economics/get-woke-go-broke-twitch-streaming-service-sack-36-employees

Get Woke, Go Broke: Twitch Streaming Service To Sack 36% Of Employees
12   AD   2023 Mar 25, 3:16pm  

.

Groupon among many holdover tech or e commerce companies that are slowly dying

.



,
13   AD   2023 Mar 25, 3:22pm  

.

Amazon had a net loss of about $2 billion in 2022. Notice it stopped construction of its Northern Virginia headquarters recently. And it has undergone significant layoffs.
.



.
14   Misc   2023 Mar 25, 4:36pm  

cisTits says

Wonder why they had the losses? Must have been on the AWS side.


Probably on the expenses side. Waaaaaaaaay too much hiring, and leasing of everything from planes to warehousing to semis. The growth just ain't there. Now they've got exploding interest expenses (there's plenty of off balance sheet financing that will come to the surface).
15   Patrick   2023 Mar 25, 4:50pm  

It used to be that all their profits came from the AWS side of Amazon, not the retail side.

AWS is just about the worst idea ever, from an intelligent customer's point of view. Yes, you can get instant servers and other services by clicking around on a web page, but:

1. it's much more expensive than setting up that server or db yourself in the long run
2. it gives Amazon the power to spy on everything you're doing
3. it gives Amazon the power to shut down your business instantly if they feel like it
4. it subjects you to outages you have little defense against
16   Patrick   2023 Mar 25, 4:52pm  

Misc says

Probably on the expenses side. Waaaaaaaaay too much hiring, and leasing of everything from planes to warehousing to semis.


Same thing whacked Shopify's stock price. Revenue is good, but they massively overspent for a "permanent" shift to online shopping that didn't happen:


17   Patrick   2023 Mar 25, 4:55pm  

Lol, that would be me.

But I don't want to do that shit anymore.
18   AD   2023 Mar 25, 4:55pm  

Misc says

Probably on the expenses side.


True, Amazon over hired, over bought, and over extended themselves. So now they can keep expenses low and not as buy as much capital like delivery vehicles, etc. I suspect it is in cycles so they will likely will be very budget conscious for at least the next 3 years.

.
19   FortwayeAsFuckJoeBiden   2023 Mar 25, 8:53pm  

ad says

Misc says


Probably on the expenses side.


True, Amazon over hired, over bought, and over extended themselves. So now they can keep expenses low and not as buy as much capital like delivery vehicles, etc. I suspect it is in cycles so they will likely will be very budget conscious for at least the next 3 years.

.


a quarter or two at most.
20   AD   2023 Mar 25, 9:13pm  

It is all seems to be playing out where the P/E ratio continues to drop, and unemployment stays below 5.25% while the Fed Funds rate remains at 5% to 5.5%.

Look at the Shiller PE ratio as it continues to drop : https://www.multpl.com/shiller-pe

The Shiller PE likely will bottom around 25

I don't see another major drop off in S&P 500 (and particularly in big tech/e-commerce/social media) companies as a lot of stock price depression was in April 2020 and October 2022. I see earnings faring better for them after cost cutting in 2023.

That is why I the PE ratio steadily dropping to 25.

It seems that Powell is slowly getting the Fed Funds rate at least equal to the 12 month inflation rate (i.e., CPI). Powell is slowly adjusting interest rates so as to gradually bring inflation down. I just think the Fed is going to set their annual inflation target to 3% instead of 2%.

Go back to Obama Administration and we had 0.25% rate for the Fed Funds rate while inflation was around 1.5% to 2%. Fortunately Obama did not go after oil and gas as bad as Birdbrain Biden, so that helped to keep inflation low from 2009 to 2016.
.
21   NuttBoxer   2023 Apr 11, 2:47pm  

Just got a new job after working at the worst place I've ever been at. Seriously, they were involved in everything from not paying employees on time, to federal tax fraud, to Medicare fraud, and I'm not even getting into how shitty the work environment was. 6% raise, and it was tough to get. Interview process took a month. It's not dotcom bust bad, but roughest I've ever seen it, and I've been in the industry for over 10 years.
22   GNL   2023 Apr 11, 4:13pm  

NuttBoxer says

Just got a new job after working at the worst place I've ever been at. Seriously, they were involved in everything from not paying employees on time, to federal tax fraud, to Medicare fraud, and I'm not even getting into how shitty the work environment was. 6% raise, and it was tough to get. Interview process took a month. It's not dotcom bust bad, but roughest I've ever seen it, and I've been in the industry for over 10 years.

Making bank?
23   Ceffer   2023 Apr 11, 4:58pm  

I worked at an office in the day that worked on a 'guaranteed profit basis' for the investors. They took 15 percent off the top no matter what the earnings or overhead. The result was my paychecks became increasingly in arrears, with them being four months late at the time I quit. It took over 8 months to receive partial compensation on my commissions, but the business went belly up anyway eventually. Weird place, bizarre management.
24   KgK one   2023 Apr 11, 6:39pm  

Congrats on new job.

I upskilled with MIT data scientist cert ( python, ML, deep learning, data analysis n visualization) few months back. Trying to break into it but no one is calling. They over hired n hyped up data scientist. I am willing to do part time or internship but don't see much out there.
25   mell   2023 Apr 11, 6:51pm  

If you have cloud engineering skills you can still land well paid jobs, esp. if you can be dev, ops and db admin in one. Serverless is great tech
26   NuttBoxer   2023 Apr 11, 8:08pm  

GNL says

Making bank?


We do ok. My biggest financial achievement has been living in California without my wife ever having to work. Place in Yuma will make us look the part at least.
27   NuttBoxer   2023 Apr 11, 8:17pm  

KgK one says

Congrats on new job.

I upskilled with MIT data scientist cert ( python, ML, deep learning, data analysis n visualization) few months back. Trying to break into it but no one is calling. They over hired n hyped up data scientist. I am willing to do part time or internship but don't see much out there.


Thanks!

I've seen some positions out there, not a ton, but I search by the term "API", as I do backend work. I know most companies have a data analytics team now days. With the market being tighter though, may have to work harder to get in the door with companies relying more on ATS to pre-screen applications. Jobscan is a pretty good tool for getting past those automated barriers. Tried TopResume as well, but the service was shit. Ended up getting a refund.
28   NuttBoxer   2023 Apr 11, 8:19pm  

mell says

If you have cloud engineering skills you can still land well paid jobs, esp. if you can be dev, ops and db admin in one. Serverless is great tech


Security is still a good field as well. The thing that makes me nervous about devops, those guys seem chronically over-worked at every company I've been at.
29   AmericanKulak   2023 Apr 12, 7:51pm  

Facebook/Meta going from 11,000 layoffs to ~10,000 more in next weeks; target is still 26,000

https://www.straitstimes.com/business/facebook-parent-meta-to-lay-off-10000-employees-in-second-round-of-job-cuts

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