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Posted 9 months ago

Layoffs are everywhere: Amazon, Google, Apple, Instagram, Discord, Citibank, Duolingo, Citigroup…

But, things are not as bad as they seem.

Tech layoffs are trending down, as the chart shows.

There’s something else happening, which is “the end of the good times” in tech, with a strict focus on profitability.

Let’s investigate under the hood, company by company:

• Amazon

Amazon made 3 major cuts in unprofitable divisions.

This year’s first cut of 900 is far less than the 27,000 total last year. Which makes these cuts, overall, rather small.

Amazonians see bottom performers cuts every year. They even saw some just two months ago in November.

• Google

Googlers everywhere are going through a new annual rite of passage: the annual reckoning.

Quiet pink slips hit employees in a suite of underperforming or loss making divisions.

This year’s cut at Google was far less than last year: 1,000 vs 12,000 last year.

• Apple

“Apple hasn’t had a layoff!” you say.

But Apple has had its own form of forced attrition.

In its Siri division, which is getting absolutely walloped by voice ChatGPT, 121 members were told to relocate or lose their jobs.

• Meta

Instagram cut 60 Technical Program Managers.

But these people are being given 60 days to find a new job.

So it’s far from a full layoff, and more in the Apple bucket of “job pressure.”

• Discord

Discord cut nearly 17% of the company, as it struggles to live up to its $15B valuation.

The company had grown 5x since 2020. It even raised in 2021 and is looking to go public soon.

This meant there was likely pressure on Jason to live up to that valuation.

• Citigroup

Falling out of the normal pattern of tech companies, Citigroup made a huge cut.

This came on the back of the company’s worst quarter in 15 years.

It reported a $1.8B net loss.

• Duolingo

Duolingo laid off 10% of its contract human translators last week.

The company is replacing them with AI.

This is actually a case of a company protecting and investing in its tech org, but relying on less on humans.

• Playtika

The Isralei gaming giant has had a rough go of it, cutting 300-400 more employees after a cut of 900 employees in December 2022.

And in its most recent quarter, net income plummeted 44% year over year.

Down 77% since IPO, this is another case of a struggling company.

Takeaways from the Layoffs

1. It’s the end of the good times in tech

→ It seems we can expect regular cuts from now on. The unparalleled job security of a Google or Apple is slowly eroding, but mainly at the edges.

2. If you’re in an underperforming or loss making division (or company), consider a move

→ This has always been the case for career growth, but now it’s also a compelling thing to do for job safety.

3. As a leader, be prepared to not just grow but also shrink - as a skill

→ For 10 years we just kept growing our orgs, now we also need to be able to manage the culture after making a forced exit on our team.

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