Big Tech Doesn't Want You Anymore

The Nugget

Big Tech is no longer the dream job it once was due to significant layoffs, overhiring, and strategic shifts towards AI, resulting in a more competitive and less glamorous work environment.

Make it stick

💡 Perks to layoffs: The once lavish perks of tech firms have transitioned to widespread layoffs and cost-cutting.
🚀 AI shift: Big Tech is cutting jobs partly to reallocate resources towards generative AI.
🏦 Boom and bust: Tech jobs mirror the financial sector in their volatility, reflecting a boom and bust cycle that demands adaptability.
🤖 Skills mismatch: The shift from web development to skills in AI and machine learning has created a skills mismatch in the industry.

During the financial crisis, central banks slashed interest rates, boosting startups and tech hiring.
Jobs in tech expanded by over 20% post-crisis, with wages growing approximately 5% per year.
Tech firms offered extravagant perks like free food, nap pods, and even on-site disco yoga to attract talent.
The global pandemic led to increased e-commerce and tech spending, resulting in major revenue growth for Big Tech.
Many tech firms increased headcount significantly, anticipating ongoing growth.

By 2022, the tech stock selloff pressured firms to improve bottom lines, leading to mass layoffs.
Major layoffs started with Twitter and continued across the sector, resulting in over 400,000 tech layoffs by 2023.
Despite the AI boom and overall strong job growth, tech workers are still being laid off due to overhiring and strategic refocusing.

Big Tech is investing in new areas like generative AI while showing cost discipline.
Roles in ESG and DEI areas were among the first to be cut as firms moved away from woke policies.
Microsoft and other companies significantly reduced their DEI teams, with broader layoffs reshaping the job market.

Tech, similar to finance, shows severe career volatility: Boom periods are followed by wage declines and job losses.
Tech job market shifts, with many experienced workers moving to smaller firms or completely different industries, facing a culture shift.
Layoffs are more strategic now, as firms focus on AI and other forward-looking areas.

Big Tech leaders sold substantial shares of their companies in 2023, reflecting possible doubts about perpetual growth.
Various firms are experiencing declines in stock value, influenced by less than spectacular tech growth and broader economic factors.

Jobs are spreading from traditional tech hubs to new areas like Dallas and Miami.
Many job openings remain in non-tech sectors, reflecting a broadening of tech skills demand beyond just traditional tech companies.
Lower wages and fewer perks define the new tech job landscape, challenging previous employment clichés.

"Being an investment banker was like being an airline stewardess—the job used to be glamorous and well-paid and now it was neither."
"We hired too many people during the boom years."
"Tech layoffs are happening as companies reshuffle resources to invest in new areas such as generative AI."
"The magnificent 7 tech companies have been selling their shares after years of no significant sales."
"Some of the luster has come off of big Tech in recent weeks... spirits in the San Francisco Bay area have only fallen further."

This summary contains AI-generated information and may have important inaccuracies or omissions.