I've noticed many recent posts about layoffs in the US. Are these continuing due to recent changes in the way software expenses are accounted for?
Ask HN: What is the current driver of tech layoffs?
1–10 of 315 posts
Re: Ask HN: What is the current driver of tech layoffs?
#2obviously a steve-jobs-like backroom deal like the one from 2005 having most companies agreeing on doing it at the same time "with no quick hires backsies".
Re: Ask HN: What is the current driver of tech layoffs?
#3The majority of wall street has accepted that there will be a recession, and interest rates are triple what they were a few years ago.
Re: Ask HN: What is the current driver of tech layoffs?
#4Little impact on the revenue side while cost can be cut significantly.
Many companies have proved it to be useful and their stock prices soar. Why don't we try it
Re: Ask HN: What is the current driver of tech layoffs?
#5I've seen these answers:
- excess hiring during the pandemic;
- interest rates raised;
- salaries too high;
- cut in remote work (to ease return to office later);
- some weird thing coming;
- AI;
(Edit: formatting)
Re: Ask HN: What is the current driver of tech layoffs?
#6Even though the annual government deficit is almost 7% of GDP, essentially injecting stimulus into the economy, wall st analysts are convinced high interest rates will cause a recession. CEOs have responded by slashing forecasts and employees to appease wall st.
Re: Ask HN: What is the current driver of tech layoffs?
#7SVB bankruptcy is part of it. A lot of free money dried up.
But also, it's an "everyone else is doing it" thing. Saturate the market with unemployed devs and you can reasonably tell your employees "Sorry, no budget for raises".
Re: Ask HN: What is the current driver of tech layoffs?
#8Everyone else is doin' it. Simple as that.
Re: Ask HN: What is the current driver of tech layoffs?
#9I think you are referring to Section 174. Seems plausible to me.
Re: Ask HN: What is the current driver of tech layoffs?
#10Companies over hired (and remotely) when money was free, and now it isn't. The end.