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Meta and Google are cutting staff

wsj.com

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Re: Meta and Google are cutting staff

#11

Post by treis »

tempsy wrote: post #2

This will be the trend among most tech companies. Very clear the market has now negatively reacted to high operating expenses that largely stem from excessive headcount. Most companies will likely not reduce pay if they can help it to maintain competitiveness, but if you’re a bottom or middle performer or on a non-revenue generating team suddenly your job security even at “safe” companies like Google is at risk.

>Very clear the market has now negatively reacted to high operating expenses that largely stem from excessive headcount.

Reducing staff by ~10% or whatever after doubling it in the last couple years isn't exactly a strong signal of anything.

Re: Meta and Google are cutting staff

#12

Post by zerkten »

lumost wrote: post #3
tempsy wrote: post #2

This will be the trend among most tech companies. Very clear the market has now negatively reacted to high operating expenses that largely stem from excessive headcount. Most companies will likely not reduce pay if they can help it to maintain competitiveness, but if you’re a bottom or middle performer or on a non-revenue generating team suddenly your job security even at “safe” companies like Google is at risk.

In fairness, at a mega-corp there is very little data on whether an employee would be successful in a different group. Some groups have bad charters/bad team dynamics/bad skills match. An internal transfer has a huge amount of visibility into these aspects when they transfer, much more than an external hire would. Its a pretty good deal to suggest to employees that they find a new team rather than performing a layoff…

Other teams may be able to add headcount, but my experience with big companies is that the organization wants to manage the number of tenured people, and people who are now sitting in non-terminal levels. Given how many people externally are competing for spots there is less of an incentive to prioritize internal people. I don't necessarily agree with this, but you have to be aware of all the stakeholders perspectives.

Re: Meta and Google are cutting staff

#13

Post by tempsy »

treis wrote: post #11
tempsy wrote: post #2

This will be the trend among most tech companies. Very clear the market has now negatively reacted to high operating expenses that largely stem from excessive headcount. Most companies will likely not reduce pay if they can help it to maintain competitiveness, but if you’re a bottom or middle performer or on a non-revenue generating team suddenly your job security even at “safe” companies like Google is at risk.

>Very clear the market has now negatively reacted to high operating expenses that largely stem from excessive headcount. Reducing staff by ~10% or whatever after doubling it in the last couple years isn't exactly a strong signal of anything.

I’m speaking more to the stock price than Meta’s actions. Shares trading lower than they were 5 years ago. And many of the unprofitable growth companies down 80-90% in less than a year.

Point is tech companies are highly sensitive to interest rates and now have to course correct in a world where the market is punishing excessive spending.

Re: Meta and Google are cutting staff

#14

Post by dafty4 »

tempsy wrote: post #13
treis wrote: post #11

Earlier quoted context omitted.

>Very clear the market has now negatively reacted to high operating expenses that largely stem from excessive headcount. Reducing staff by ~10% or whatever after doubling it in the last couple years isn't exactly a strong signal of anything.

I’m speaking more to the stock price than Meta’s actions. Shares trading lower than they were 5 years ago. And many of the unprofitable growth companies down 80-90% in less than a year. Point is tech companies are highly sensitive to interest rates and now have to course correct in a world where the market is punishing excessive spending.

The stock price dive at Meta is pretty clearly due to the $10B hit from Apple’s Do Not Track Feature.

Meta should make a free Android phone that allows tracking.

Re: Meta and Google are cutting staff

#15

Post by game_the0ry »

I can't read WSJ while at work, but after checking on the financials for both Meta and Alphabet, I do not understand why either would be cutting staff. Both look pretty strong, so I am not sure how cuts are justified or why Zuckerberg has a negative outlook, especially since 2021 was such a great year for both.

Do American executives, investors, and start up owners not have the guts for even a moderate stock price drop? I guess the reaction is to cut staff, or threaten to, when there is a whiff of negativity. Fuckin weak.

Re: Meta and Google are cutting staff

#16

Post by jollyllama »

jejeyyy77 wrote: post #5
tempsy wrote: post #2

This will be the trend among most tech companies. Very clear the market has now negatively reacted to high operating expenses that largely stem from excessive headcount. Most companies will likely not reduce pay if they can help it to maintain competitiveness, but if you’re a bottom or middle performer or on a non-revenue generating team suddenly your job security even at “safe” companies like Google is at risk.

Personally, being laid off sounds pretty good right about now. Paid vacation before going back into a hot job market for a full remote job.

It's cooling off. Zombie companies are going to have trouble continuing as rates rise.

Re: Meta and Google are cutting staff

#17

Post by tempsy »

dafty4 wrote: post #14
tempsy wrote: post #13

Earlier quoted context omitted.

I’m speaking more to the stock price than Meta’s actions. Shares trading lower than they were 5 years ago. And many of the unprofitable growth companies down 80-90% in less than a year. Point is tech companies are highly sensitive to interest rates and now have to course correct in a world where the market is punishing excessive spending.

The stock price dive at Meta is pretty clearly due to the $10B hit from Apple’s Do Not Track Feature. Meta should make a free Android phone that allows tracking.

Nasdaq is down 30%. Clearly macro factors like rates and inflation and recessionary pressures are putting pressure on rate sensitive companies generally speaking. You can’t just say it’s ad tracking when dozens of mid and large cap tech stocks are down 30-80% ytd

Re: Meta and Google are cutting staff

#18

Post by jejeyyy77 »

jollyllama wrote: post #16
jejeyyy77 wrote: post #5

Earlier quoted context omitted.

Personally, being laid off sounds pretty good right about now. Paid vacation before going back into a hot job market for a full remote job.

It's cooling off. Zombie companies are going to have trouble continuing as rates rise.

people have been saying this for 2 decades. I'll believe it when I see it.

Re: Meta and Google are cutting staff

#19

Post by wollsmoth »

jejeyyy77 wrote: post #18
jollyllama wrote: post #16

Earlier quoted context omitted.

It's cooling off. Zombie companies are going to have trouble continuing as rates rise.

people have been saying this for 2 decades. I'll believe it when I see it.

rates haven't been rising for two decades.

Re: Meta and Google are cutting staff

#20

Post by newaccount2021 »

jejeyyy77 wrote: post #18
jollyllama wrote: post #16

Earlier quoted context omitted.

It's cooling off. Zombie companies are going to have trouble continuing as rates rise.

people have been saying this for 2 decades. I'll believe it when I see it.

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