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The tech sector teardown is more catharsis than crisis

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Re: The tech sector teardown is more catharsis than crisis

#51

Post by notacoward »

tjpnz wrote: post #14

There's been a lot of posturing here over the years about how doesn't do layoffs, but we're starting to see that not even they are immune anymore. I hope everyone has some savings put aside if things really do turn to shit.

I predict that some of these companies will try to avoid the taint of layoffs by doing them in sneaky ways. One classic method is using "performance" reviews to reduce/deny bonuses and equity awards, or in some cases simply terminate people whose objective performance is fine. Another is to cancel projects or reorganize, offering the "opportunity" for an internal transfer except that many will be surprisingly unable to find a "fit" before time runs out. Zealous (but selective) enforcement of previously ignored policies is a third. If you currently have a "handshake deal" for a 10-on/4-off schedule, or "business" travel that's really about getting to see your girlfriend more often, or an exemption to some IT policy, watch out.

Driving "natural" attrition isn't hard, as companies like IBM and DEC realized long ago. Anyone working at a FAANG or similar company should get used to watching their steps very carefully, and consciously aligning with the "in" crowd even more than was already the case.

Re: The tech sector teardown is more catharsis than crisis

#53

Post by htormey »

The macro economic setup doesn’t look good for small tech or growth stocks in general. Big tech I’m less worried about.

We have central banks rising interest rates to fight inflation, caused by wars and massive monetary and fiscal stimulus to fight Covid. these hikes impact valuation multiples used to value tech and unprofitable startups.

We have a supply chain shock caused by war in the Ukraine, the aftermath of Covid and Chinas second lock down which could lead to stagflation.

The only silver lining I see is that big tech prints money, is in many areas essential for cost reduction and has excellent balance sheets.

In summary Im more worried about the general economy tear down than the tech tear down, especially in the later half of this year and 2023.

Re: The tech sector teardown is more catharsis than crisis

#54

Post by shawabawa3 »

heed wrote: post #49
koblas wrote: post #43

Earlier quoted context omitted.

Actually just had a discussion about this and putting the dollars out in front in the hiring process is something that more canidates are looking for in this competitive market. I'm sure it was said something like "this title (grade) pays 380k, is that's what you're hired at". Since levels.fyi has this all documented it still comes down to the interview and your ability to pass the interview and meet expectations for…

Also notably CB doesn’t allow salary negotiation [0] so they just throw out high sounding number up front. [0]: https://blog.coinbase.com/how-coinbase-is-rethinking-its-app...

> "so they just throw out high sounding number up front"

Weird way to phrase it, makes it sound like they just make it up on the spot

They have fixed salary per level, so they tell you exactly what you will make if hired

Re: The tech sector teardown is more catharsis than crisis

#55

Post by mancerayder »

kqr wrote: post #13
SemanticStrengh wrote: post #10

The only reason there is a recession is because people believe there is a recession

This goes for any social construct, and is just about meaningless to say. The only reason you have a family is because you believe you have a family. The only reason you have a manager is because you believe you have a manager. The only reason you're in a soccer team is because you believe you're in a soccer team. The only reason you have a grocery store is because you believe you have a grocery store. And so on.

While stated like fact, you're espousing a relatively radical philosophical perspective about reality. It might drive radical social change (or desire to), but most people don't think like this.

Re: The tech sector teardown is more catharsis than crisis

#56

Post by neill »

htormey wrote: post #50
gitfan86 wrote: post #32

Earlier quoted context omitted.

I has a phone screen at Coinbase and they just threw out 380k as the salary without me saying anything as far as expectations. This reminds me of the dot com bubble. In 2000 people who had no software background and were making 50k would get offers for 80k, just for showing up at an interview and saying they know Java or HTML

I work at coinbase. We have standardized salary bands, this is just the salary at your level (comp plus equity, not sure if bonus is included). They are letting you know this up front to not waste your time. One other thing that’s worth noting is that each year they give you a new equity grant. That grant I believe is priced based on the stock price over a period of 30 days in the first quarter. Handy for limiting yo…

The issue they are raising is specifically that, $380k standardized salary band, what role is this? That number seems unsustainable.

Re: The tech sector teardown is more catharsis than crisis

#57

Post by Jensson »

SemanticStrengh wrote: post #10

The only reason there is a recession is because people believe there is a recession

No, recessions happens when the economy is out of balance and corrects. Look at this graph for example, there was a huge correction happening in 2008. Currently the graph is much more out of line than it was in 2008, so it would make sense that we would need another recession to turn it back again.

https://tradingeconomics.com/united-states/balance-of-trade

Re: The tech sector teardown is more catharsis than crisis

#58

Post by lupire »

neill wrote: post #56
htormey wrote: post #50

Earlier quoted context omitted.

I work at coinbase. We have standardized salary bands, this is just the salary at your level (comp plus equity, not sure if bonus is included). They are letting you know this up front to not waste your time. One other thing that’s worth noting is that each year they give you a new equity grant. That grant I believe is priced based on the stock price over a period of 30 days in the first quarter. Handy for limiting yo…

The issue they are raising is specifically that, $380k standardized salary band, what role is this? That number seems unsustainable.

And they gave that number out before they assessed candidate level. But maybe that was recruiting BS as the pay for the max plausible level.

Re: The tech sector teardown is more catharsis than crisis

#59

Post by htormey »

neill wrote: post #56
htormey wrote: post #50

Earlier quoted context omitted.

I work at coinbase. We have standardized salary bands, this is just the salary at your level (comp plus equity, not sure if bonus is included). They are letting you know this up front to not waste your time. One other thing that’s worth noting is that each year they give you a new equity grant. That grant I believe is priced based on the stock price over a period of 30 days in the first quarter. Handy for limiting yo…

The issue they are raising is specifically that, $380k standardized salary band, what role is this? That number seems unsustainable.

No. This is well paid but not out of the ordinary for someone working at a top tier tech company in NYC/SF Bay Area. Think Facebook, Apple, etc. see https://www.levels.fyi/ for levels and comparison.

Some of those companies are doing hiring freezes right now but many are not.

Salary bands are adjusted within the USA by zones where NYC/SF/Seattle are zone 1, zone 2 is 90% of base, zone 3 is 85%. With equity component staying the same.

Europe/Brazil/Canada are on a totally different lower pay scale.

Re: The tech sector teardown is more catharsis than crisis

#60

Post by htormey »

lupire wrote: post #58
neill wrote: post #56

Earlier quoted context omitted.

The issue they are raising is specifically that, $380k standardized salary band, what role is this? That number seems unsustainable.

And they gave that number out before they assessed candidate level. But maybe that was recruiting BS as the pay for the max plausible level.

Well yeah, that’s what they think the candidates pay level will be. If the candidate doesn’t perform well in the interview they won’t get that offer.
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