4 ms·

>I suspect we are going to see some turmoil in the tech hiring space I agree, but I don't think the disruption will go the way you or I hope it would. Many of

>I suspect we are going to see some turmoil in the tech hiring space I agree, but I don't think the disruption will go the way you or I hope it would. Many of the companies that is "one tier" below were able to offer higher comp only because of sky high valuation from the recent bubble. Most of them aren't in the kind of cashflow positions that can sustain such high cost if the stock value correct. If we enter an economic situation where stock value go down for companies like MSFT, Google and Apple, what do you think would happen to the stock price of high flying growth companies that don't even make a profit? And guess what, most of them are coming to the realization that you don't need to actually pay $300k+/yr to hire some IC just to build React components or spin up another Node.js microservice. I know of quite a few companies (especially the ones that took a beating on the market recently) that's already starting to pivot more aggressively to foreign developers and starting to look at engineering offices outside of the country. If anything, the past two years only made a global workforce to be easier than ever to adopt. Basically I think given the macroeconomic that's going on, the days when barely profitable or even cashflow negative "growth" companies offering FAANG-beating compensation packages will soon be gone. The numbers just won't add up anymore.

nostrademons 5y ago
That's what I'm seeing as a hiring manager at one of the FAANGs. A lot of our candidates are interested in us simply because we provide stability and profitability that they can't get in the hot growth companies they already work at.
paxys 5y ago
Thing is, we've had a unique situation in recent years where trillion dollar companies have seen startup-like growth quarter after quarter. Of course no one can predict the future, but I personally think this growth will stabilize to more traditional levels (see the history of the tech industry up until ~2010 for example). This does not mean that the VC industry will disappear and startup bubbles will stop being a thing. It will just be slightly more "boring" to get a job at Google or Apple the same way it was at Cisco or IBM back in the day, and top talent will want to look elsewhere for more risk and reward.
arcticbull 5y ago
> ... what do you think would happen to the stock price of high flying growth companies that don't even make a profit? They're already down as much as 80%. If I were looking around today, I'd kill to join one of those high growth tech startups with a solid balance sheet that just got the crap kicked out of its stock.
- moneywoes 5y ago
  Any names? Besides SQ I don't see many
  - arcticbull 5y ago
    That's the big one I had in mind.
  - peanuty1 5y ago
    In addition to Block there's Pinterest, Coinbase, and Roblox.
- pclmulqdq 5y ago
  Pretty much none of them have a solid balance sheet, though. They are all selling hopes and dreams. When something is overvalued by a factor of 100 and goes down 80% it's still overvalued by a factor of 20.

nostrademons 5y ago

That's what I'm seeing as a hiring manager at one of the FAANGs. A lot of our candidates are interested in us simply because we provide stability and profitability that they can't get in the hot growth companies they already work at.

paxys 5y ago

Thing is, we've had a unique situation in recent years where trillion dollar companies have seen startup-like growth quarter after quarter. Of course no one can predict the future, but I personally think this growth will stabilize to more traditional levels (see the history of the tech industry up until ~2010 for example). This does not mean that the VC industry will disappear and startup bubbles will stop being a thing. It will just be slightly more "boring" to get a job at Google or Apple the same way it was at Cisco or IBM back in the day, and top talent will want to look elsewhere for more risk and reward.

arcticbull 5y ago

> ... what do you think would happen to the stock price of high flying growth companies that don't even make a profit? They're already down as much as 80%. If I were looking around today, I'd kill to join one of those high growth tech startups with a solid balance sheet that just got the crap kicked out of its stock.

moneywoes 5y ago
Any names? Besides SQ I don't see many
- arcticbull 5y ago
  That's the big one I had in mind.
- peanuty1 5y ago
  In addition to Block there's Pinterest, Coinbase, and Roblox.
pclmulqdq 5y ago
Pretty much none of them have a solid balance sheet, though. They are all selling hopes and dreams. When something is overvalued by a factor of 100 and goes down 80% it's still overvalued by a factor of 20.