How Working For Google, Amazon, And Microsoft Lost 'Dream Job' Status
Summary
TLDRThe tech industry, once renowned for its lavish perks and job security, has seen a shift in perception due to a surge in layoffs in recent years. Companies like Google, Netflix, and Salesforce, known for their employee benefits, now face workforce reductions. The industry's allure has dimmed as job stability becomes a top concern for new graduates and workers, who are reevaluating their career choices. Despite the layoffs, the tech sector still offers competitive salaries and prestige, prompting some to seek opportunities in smaller, less publicized companies or other industries where their skills are valued.
Takeaways
- 🏆 Google has been ranked as the top company to work for by Fortune, offering extensive perks such as free food, Wi-Fi-enabled shuttles, and recreational facilities.
- 👶 Netflix provides generous parental leave, allowing parents to take as much time off as needed during their child's first year after birth or adoption.
- 🧘 Salesforce has created mindfulness areas in the workplace, designed with the help of monks, to promote employee well-being.
- 💸 Airbnb offers employees a travel stipend of two thousand dollars, encouraging them to explore and experience different cultures.
- 🎶 Pandora, a music discovery platform, goes beyond traditional benefits by covering the costs of gender affirmation surgery for its workers.
- 🎨 Smaller tech startups are also enticing workers with unique perks, such as custom oil canvas paintings for top performers and secret meeting rooms.
- 📉 The tech industry has faced significant layoffs, with big names like Google, Microsoft, and fintech companies Block and PayPal making cuts in various divisions.
- 📈 The surge in tech layoffs in 2023 was influenced by high interest rates and a shift towards generative AI, with the trend continuing into 2024.
- 🧐 Workers who were laid off are now viewing the tech industry differently, realizing that job security and company culture are not as stable as previously thought.
- 📊 The tech industry's dominance in headlines during the 2010s was due to low-interest rates, venture capital, and the rise of smartphones and social media.
- 💼 Having a major tech company on one's resume was considered prestigious and an advantage when seeking new job opportunities.
- 📉 Tech stocks took a hit when the Federal Reserve raised interest rates in 2022, leading to mass layoffs as a cost-saving measure, which paradoxically boosted stock prices in 2023.
- 🔄 The post-pandemic tech industry is adjusting to changing consumer demand, with companies focusing on profitability over growth, leading to a 'new normal' of layoffs.
- 📉 Despite the layoffs, the overall labor market remains strong, with the US economy adding jobs and the unemployment rate decreasing.
- 🤔 Tech graduates are now considering a wider range of career options beyond the tech industry, with stability becoming a significant factor in their job choices.
- 💼 Tech companies are no longer seen as disruptors but as established entities, which may affect their appeal to new talent seeking innovation and growth opportunities.
Q & A
Why was Google ranked as the top company to work for in the tech industry?
-Google was ranked number one due to its extensive employee perks, including free food, Wi-Fi-enabled shuttles, recreational facilities like horseshoe pits and volleyball courts, and a culture that was seen as innovative and supportive.
What benefits does Netflix offer to parents of newborns or newly adopted children?
-Netflix allows parents to take as much time off as they need during the first year of their child's birth or adoption, providing significant flexibility and support for new parents.
How does Salesforce create a mindful work environment for its employees?
-Salesforce has mindfulness areas designed with the help of monks, aiming to provide a serene and focused atmosphere for employees to work in.
What is the unusual benefit that Pandora offers to its employees?
-Pandora offers to pay for gender affirmation surgery for its workers, showing the company's commitment to diversity and inclusion.
What is the unique feature of the secret room in the New York office of an unnamed tech startup?
-The secret room, which is revealed by a custom oil canvas painting, is used for meetings, poker games, and even closing deals with a shot of whiskey.
How did the tech industry's job landscape change from the 2010s to the 2020s?
-In the 2010s, tech companies were known for their innovative perks and a culture that put employees first. However, by the 2020s, the industry has seen a surge in layoffs, with companies like Google, Microsoft, and fintech firms implementing job cuts.
What factors contributed to the surge in tech layoffs in 2023?
-The surge in tech layoffs in 2023 was sparked by high interest rates and a strategic pivot towards generative AI, leading to a significant shift in the tech industry's landscape.
How has the perception of working in a big tech company changed after the recent layoffs?
-The perception has shifted from seeing big tech companies as a secure and prestigious place to work, to realizing that they operate much like traditional companies, with the possibility of being laid off at any moment.
What was the impact of the Federal Reserve's interest rate policies on the tech industry after the 2008 financial crisis?
-The Federal Reserve's decision to keep interest rates near zero for years allowed tech companies and startups to borrow money at low costs, leading to an influx of venture capital and a boom in the tech industry.
How did the COVID-19 pandemic initially affect the tech industry's job market?
-The tech industry thrived during the initial stages of the COVID-19 pandemic, with the Federal Reserve cutting interest rates back to near zero, which boosted tech stocks and led to an increase in tech jobs as people stayed home.
What has been the stock market's reaction to the tech industry's layoffs?
-The stock market has reacted favorably to the layoffs, with tech stocks like the NASDAQ climbing significantly in 2023, as investors favored profitability over growth.
How are recent college graduates responding to the tech industry's instability?
-Recent college graduates are considering other options beyond the tech industry, such as government jobs or starting their own businesses, due to the perceived instability and layoffs in tech companies.
What advice would you give to those who are still interested in pursuing a career in tech?
-Keep your options open, be realistic, and consider smaller companies that may not be in the headlines but offer great work environments. Also, be prepared for the possibility of job instability and focus on building a versatile skill set.
Outlines
😀 Golden Age of Tech Industry and Changing Perceptions
This paragraph discusses the shift in perception of the tech industry from a golden era of employee benefits and company culture to a more uncertain landscape marked by layoffs. It highlights how companies like Google, Netflix, Salesforce, and Airbnb once offered lavish perks to attract talent, but now even giants like Google and Microsoft are cutting jobs. The paragraph also touches on the emotional impact on workers who believed they were part of a secure and meaningful culture, only to face unexpected layoffs. It reflects on how the tech industry's allure has diminished as it faces challenges similar to traditional industries.
📉 Tech Industry's Shift from Growth to Layoffs
The second paragraph delves into the economic factors contributing to the tech industry's shift from growth to layoffs. It explains how the Federal Reserve's actions during the COVID-19 pandemic, such as lowering interest rates, initially boosted tech stocks and job growth. However, as rates began to rise in 2022, the industry started to downsize, with mass layoffs becoming a method of cost-cutting. The paragraph also discusses the market's positive reaction to these layoffs, as investors began to prioritize profitability over growth. It notes the ongoing trend of layoffs in 2024 and the impact on job seekers, who are now looking for stability in sectors like government jobs, which are perceived as more secure.
🔄 Adjusting to the New Reality of the Tech Industry
The final paragraph addresses the new reality of the tech industry, where the excitement and allure of working for major tech companies have been tempered by the harsh realities of layoffs and economic shifts. It suggests that while the industry still holds some appeal, particularly for the prestige and potential resume boost, job seekers are now more open to considering other options, such as starting their own businesses or working in government or other industries where they can have a significant impact. The paragraph concludes with advice for those still interested in tech, encouraging them to keep their options open, be realistic, and be prepared for a changing landscape where tech giants are no longer seen as disruptors but as established entities.
Mindmap
Keywords
💡Tech Industry
💡Layoffs
💡Perks
💡Stock Options
💡NASDAQ
💡FAANG Stocks
💡Interest Rates
💡Venture Capital
💡COVID-19 Pandemic
💡Efficiency
💡Job Security
Highlights
Fortune unveils its top 100 best companies to work for, with Google ranking number one for multiple years.
Google offers extensive perks such as free food, Wi-Fi-enabled shuttles, sports facilities, and more.
Netflix allows parents unlimited time off during the first year of their child's birth or adoption.
Salesforce has mindfulness areas designed with the help of monks, promoting employee well-being.
Airbnb provides a $2,000 travel stipend for its employees.
Pandora pays for gender affirmation surgery for its workers, showcasing inclusive benefits.
Tech startups offer unique perks like custom oil canvas paintings and secret rooms for top performers.
New Relic prides itself on an abundant supply of company-branded swag for employees.
Layoffs in the tech industry have surged in 2023 due to high interest rates and a shift to generative AI.
Tech industry layoffs have persisted into 2024, changing workers' perceptions of job security.
The tech industry's appeal has diminished as companies like Google and Amazon announce layoffs.
The tech industry is now seen as similar to traditional industries, with growth and layoffs cycling.
Low interest rates post-2008 financial crisis fueled tech company growth and stock market dominance.
Tech companies' growth and innovation made working for them prestigious and a mark of honor.
Having a major tech company on one's resume can significantly boost job prospects.
The COVID-19 pandemic initially boosted the tech industry, but the Federal Reserve's rate hikes in 2022 led to stock declines and layoffs.
Tech industry job postings saw a significant increase during the pandemic but have since cooled down.
The stock market reacted positively to tech layoffs, with investors favoring profitability over growth.
Tech layoffs have prompted job seekers to consider other industries for greater stability.
Despite layoffs, the tech industry still offers high pay and can add prestige to a resume.
Job seekers are encouraged to keep options open and consider smaller tech companies and other industries.
Big Tech needs to evolve its workplace culture, expectations, and benefits to remain attractive to early talent.
Transcripts
Remember the golden age of working for the tech industry.
Fortune is unveiling its top 100 best companies to work for.
Google's number one again this year, it was number one last
year and the year before. Google has everything - free food
everywhere a Wi-Fi enabled free shuttle. They have horseshoe
pits, volleyball courts street hockey, like you know pools.
Netflix's letting you parents take as much time off as they
need during the first year of their child's birth or adoption.
Salesforce has mindfulness areas designed with help from monks.
Airbnb gives employees a two grand travel stipend. Music
discovery platform Pandora even pays for its workers to have
gender affirmation surgery.
Let's pause here. It's not only big names like Google, Apple and
Amazon that entice workers with these perks, smaller tech
startups were also offering workers outlandish extras,
everything from performance based prizes to an endless
supply of company branded swag.
Top performers every month to the New York office, get an
actual custom oil canvas painting.
If you pop it actually reveals a secret room. And we have like
meetings in here do poker and maybe even close the deal have a
shot of whiskey or something.
Here is a must come spot for anybody who comes to New Relic
is where we have all our swag all our New Relic pride. And the
great thing is, is you can just come and grab whatever you want.
Well, that was the 2010s This is how tech companies are grabbing
headlines these days.
Layoffs in technology just keep coming. the latest Google
cutting hundreds of jobs in its engineering product and hardware
divisions.
So this is the latest round of layoffs we are hearing about in
tech today. It's two fintech companies Block and PayPal.
Microsoft cutting almost 2000 jobs at Activision Blizzard and
Xbox as the tech landscape resets.
Layoffs in the tech industry surged in 2023, sparked by high
interest rates and a pivot to generative AI. The pace of
layoffs in the tech industry has persisted well into 2024.
Workers who were laid off now see this industry in a different
way.
When you work for a big tech company, you had this assurance
that you were going to be okay that you were part of this
greater thing that you were part of this culture that really
meant something - you were making a difference. At any
moment -snap- you could be axed.
Before 2020, people were interested in the tech industry
just because I mean, the high pay prestige, I think just
seeing it as different, right? You have all these traditional
companies. And then you have all these companies that are just
doing things different, and they look like kind of the future of
work, people thought it was gonna be like a huge shift
towards these fun environments and flexible environments and
places where they put employees first. Now that sort of shifted
anything. Well, these aren't too much different than these older
traditional companies that people were already working at
in the early 2000s.
The tech industry as a whole has completely lost its luster
because people are starting to recognize that the tech industry
is just like any other industry. It was up one day and now it's
down. You consider what's going on a companies like Google.
Consider what's going on in the companies like Amazon, the
moment they started to announce layoffs, people start to
recognize that these companies these tech giants are just like
every other company. They hire today and they get rid of you
tomorrow.
The tech industry completely dominated the news headlines in
the 2010s. After the 2008 financial crisis, the US Federal
Reserve brought interest rates to near zero and kept them there
for years. That allowed tech companies and startups to borrow
money at rock bottom prices, and open the floodgates for venture
capital money too.
Boosted by ultra low interest rates and a ready supply of
venture capital money and skyrocketing adoption of
smartphones and social media, tech companies took over the
stock market as well.
Working at one of these tech companies became a way to get
rich. Employees often got a good portion of their compensation
paid out in stock options. As tech stocks rose, workers got
richer and richer. The tech heavy NASDAQ for example, rose
about 347% from January 2010 to December 2019.
Netflix was the biggest gainer among the FAANG stocks surging
more than 4,000%.
I think for a long time working for a major tech company like
Google or Meta, Microsoft was really seen as a badge of honor,
because these were companies that were growing tremendously.
And through most of the lifetime, for many of our
current students right now in our recent graduates, all they
saw their entire childhood was growth.
They saw these companies get larger, they saw them innovate.
They saw new products that really transformed their day to
day life. So to be able to work in those companies was seen as
prestigious, and it was seen as a very positive step in building
their own careers to be able to contribute to the technology
that they themselves and their families used every single day.
People definitely look at you differently when you have
Microsoft or a larger tech company on your resume. People
have called it the easy door into your next job or whatever.
I don't know if it's that far. But definitely if you especially
if you're going to a place that is built on Azure and you have
Microsoft experience that seems like a no brainer. Or if you
have going to somewhere that's a Google based company, you have
Google on your resume or Amazon, I think it probably puts you
towards the front of the line.
When COVID-19 began, the economy initially struggled, but the
tech industry thrived.
The Federal Reserve's swift actions, such as cutting
interest rates back to near zero boosted tech stocks. This in
turn led to an increase in tech jobs, primarily as people stayed
home.
However, tech stocks took a hit once the Fed started raising
rates in 2022. So the industry started using mass layoffs as
one of the many ways of belt tightening. Wall Street loved
this move, reflected in the bounce in tech stocks in 2023.
The tech heavy NASDAQ climbed to 43% in 2023, its best years
since 2020.
In the pandemic, the tech industry saw some pretty big
pickups in job posting games on Indeed platform. We saw really
strong hiring. People were at home, they were consuming more
kind of these tech goods and services. And many tech
companies adjusted to that and hired more workers.
So we saw a big run up in 2021-22. And then in 2023, we
saw some of that demand start to kind of cool down and soften. In
2024, so far, we've seen somewhat similar to 2023, some
layoffs being announced, we've seen kind of a continuation of
pull back and job postings in the tech industry.
But again, a lot of these layoffs that we've seen so far
this year in 2024, have really been about right sizing and
adjusting to a world of post Covid consumer demand and trying
to figure out what does the world look like after Covid. So,
a lot of it really comes down to businesses making moves to
really understand, you know, where their consumers are, and
trying to fit their workforces to that demand.
Now we see the stock market reacted quite favorably to this
round of layoffs. We see these record stock prices for a lot of
these tech companies. The investors really favored
profitability, really favored this lean year that these tech
companies had. And so instead of rewarding the growth that we saw
in them all pursue years ago, they're now rewarding profit.
And so the layoffs have continued, people have become
used to them, and regrettably, and sadly, it seems that the
layoffs is going to be the new normal.
Layoffs in tech show no signs of letting up. In fact, more and
more companies have embraced quote, efficiency, as a common
mantra in recent earnings calls.
A memo sent out by Elon Musk to the staff outlining that the
company will be cutting more than 10% of its global staff.
Layoffs are the first for Apple since the pandemic and come
shortly after the company shuttered its self driving car
project.
Amazon is cutting hundreds of jobs from its cloud computing
division Amazon Web Services.
Even though mass tech layoffs continue dominating headlines,
the labor market still seems strong. The US economy added
303,000 jobs in March well above the Dow Jones estimate for a
rise of 200,000 with the unemployment rate edging lower
to 3.8%.
The tech layoffs have prompted new workers to seek other
opportunities according to Handshake, a popular free job
posting site for college students and graduates. So the
share of tech majors job applications submitted to
internet and software companies dropped by more than 30% between
November 2021 and September of 2023, while the share of
applications submitted to government jobs, more than
doubled.
And part of the reason why this is happening is because
stability is such a major factor in student's decision around
what types of jobs they apply to and what types of jobs they
accept. 77% of this recent class of 2024 cares about stability as
the number one factor. And the government, for example, is an
entity that provides a strong level of stability, whereas
they're looking at the headlines and the news. And they're paying
attention to all of the layoffs that are happening in Big Tech.
And that makes them feel unstable.
The layoff pandemic is not necessarily impacted tech the
way we thought it was - largely because of the fact that these
jobs still pay really well. And there's still a degree of
luster. It's not nearly as exciting as it was 20 or 30
years ago. But it's still exciting. And people really want
that bullet point on the resume. Even if they only lasted a
Google, for let's say six months or a year, they can still say
they work there. I think what we're starting to see ultimately
is that people are starting to consider other options. Whether
they're deciding that once they get their degrees, they're going
to go create their own businesses, they're going to get
government space, they're going to get in other industries,
where there is a need for their technical skill set where they
can essentially be a big fish in a small pond, which in many ways
gives them job security that they don't necessarily get in
the tech industry.
People that are wanting to work in tech and wanting to still
stay in tech. I think we just have to be a little bit more
careful, and little bit more guarded about keeping our
options open and not feeling the need to be extremely loyal and
dedicated to one company. Because they surely are not
dedicated and loyal to us, no matter what your manager no
matter what your director is saying, no matter what praise
you're getting, it doesn't really matter sometimes at the
end of the day, at a lot of tech companies, unfortunately.
These layoffs have, to an extent hurt the luster of the tech
industry, but not to the point that I think that people all of
a sudden are going to decide not to go work for them anymore. But
even we consider that recent college grads, five years ago,
they couldn't wait to go to work for the big tech industry.
But now they're considering things whether I go to tech,
whether I go to government, whether I go someplace else, I
want to go someplace where I feel like I'm part of something
bigger than myself.
Tech companies are just not offering that anymore, because
they're not necessarily disruptive. And I'm talking the
big giants. I'm talking about the Amazons of the world, the
Microsofts of the world, the Googles of the world. They're
not seen as disruptors. Now they're seen as more established
companies.
To the people who are chasing like a tech dream job, I think,
keep your options open and be realistic. Don't just focus on
one company and feel like you have to get into that one
company because it's the dream. Pay attention to the other ones.
Pay attention to smaller companies. There's a lot of
really good smaller companies that are not in the headlines
that are great places to work, but also don't hold back. Drive
towards something and have a goal. Just temper your
expectations.
I think the glory days of the tech industry will certainly
continue to flow back into the existence in the eyes of our
early talent. I think it will look different as it continues
to evolve. I think the values and the needs and the desires of
our early talent will continue to change as the macro economic
situation around them also changes. And I think Big Tech if
they want to remain an attractive option for early
talent will need to continue to evolve their workplace, their
expectations and their benefits.
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