If this turns out to be true, I hope it's a watershed moment in the tech industry. Lots of middle management in other companies will be sweating since they'll need to do something better than just asking "hey, when do you think this can be done?".
People don't want to accept it on this forum, but with VC money drying up, lessened risk taking, widespread layoffs, plus large influx of workers via career changes, remote work leading to CoL arbitrage, wages are likely to decline pretty broadly across the industry.
Especially so at the upper end FAANG comp bands. Likely most of these previously 500k+ comp packages will compress closer to 300k. Issuing RSUs at lowered valuation multiples is much less viable for a public company. Some public companies have ~50% or more of their revenue consumed by stock based comp, which is clearly not sustainable.
It will impact me too, but I accept it as the most likely outcome
I think the larger income hump will diminish greatly but other industries are probably just waking up to the fact that they were thrown into an accelerated automation and digital transformation competition. I really don't understand how that can't be bad for the rest of the labor market though.. I don't really see consumers as infinitely hungry for goods in the long term.
I had a manager who had a manager who had an director who had a director who had a VP who had a VP who had an SVP who reported to the CEO. I may have left out a few layers.
The Ides of March portend the end of one arisen world & the thrashing necessity of finding a new world to take it's place. (It famously did not go well for the assassin's & their desires.)
It would truly be a new world if Meta cut a bunch of management-class people, and the rest of the world actually followed suit. It seems unimaginable.
I feel like this is the one step that has been unimaginable anywhere in the world. There definitely have been whole teams let go, and a lot of other non-industrial/support departments seeing cuts, but just saying, the managerial class isn't really that valuable, we want to keep our good workers though: it'd be a wildly different world.
Weirdly I find myself far less eager for such a wide shift than I would have been, even a couple years ago.
adam_arthur|3 years ago
Especially so at the upper end FAANG comp bands. Likely most of these previously 500k+ comp packages will compress closer to 300k. Issuing RSUs at lowered valuation multiples is much less viable for a public company. Some public companies have ~50% or more of their revenue consumed by stock based comp, which is clearly not sustainable.
It will impact me too, but I accept it as the most likely outcome
roundandround|3 years ago
dzonga|3 years ago
dekhn|3 years ago
firstfewshells|3 years ago
mc32|3 years ago
rektide|3 years ago
It would truly be a new world if Meta cut a bunch of management-class people, and the rest of the world actually followed suit. It seems unimaginable.
I feel like this is the one step that has been unimaginable anywhere in the world. There definitely have been whole teams let go, and a lot of other non-industrial/support departments seeing cuts, but just saying, the managerial class isn't really that valuable, we want to keep our good workers though: it'd be a wildly different world.
Weirdly I find myself far less eager for such a wide shift than I would have been, even a couple years ago.