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The root cause really is that Silicon Valley does't hire or fire CEOs, Wall Street does! Its funny, and indicative, that even "Business Insider" doesn't recogn
by yazaddaruvala 4y ago
The root cause really is that Silicon Valley does't hire or fire CEOs, Wall Street does!
Its funny, and indicative, that even "Business Insider" doesn't recognize the difference.
FWIW, Silicon Valley "hires and fires" founders. Sometimes they also happen to be good CEOs for Wall Street, until they are not (involuntarily for performance reasons, or voluntarily because of age or enthusiasm).
- morpheos137 4y agoAside from executive error the root cause is if increasing or maintaining higher levels of staffing increased or maintained marginal profit then staffing would not be reduced. Put more simply if these people were making the company money it wouldn't lay them if managers are rational.
- 8note 4y agoTech companies are generally valued much higher than their profits A team at Google making a few more millions than they spend doesn't justify buying Google stock at it's current price. Google isn't a startup anymore, so it might be worth going after a bigger piece of a smaller pie
- morpheos137 4y ago>Tech companies are generally valued much higher than their profits In the long run tech companies will be valued just like normal companies. Innovation is slowing down. Expect a reduction in tech salary rates relative to more traditional engineering. Three things propping up tech salaries over the past decade are loose money policy, the advertising bubble, and the rapid turn over hardware and software in the market place. There are few fundamentally new things of value in 2022 vs 2012. It just costs more to pay programmers to make the same thing and takes more computing horsepower. In the long run this is unsustainable. For example GB of RAM to run a web browser or OS. I could watch videos online in 2012. I can in 2022 too.