The Broken Senior-Only Job Market

Summary

The video discusses the recent tech layoffs and their underlying causes, suggesting that overhiring during COVID is not the real reason. It emphasizes the importance of deep knowledge for junior developers and how AI and Elon Musk's cost-cutting measures have impacted the industry. The speaker advises focusing on fundamental skills, learning one thing well, and considering startups as a viable career path. They highlight the role of AI in creating new opportunities and encourage viewers to build products people use, stressing the value of practical experience and continuous learning.

Takeaways

• 📉 Tech layoffs are happening despite companies showing increased net income, suggesting that over-hiring during the pandemic is not the sole reason for job cuts.
• 🔍 The speaker identifies four converging trends detrimental to junior developers: over-hiring, cost-cutting by tech giants like Twitter, lack of deep knowledge among junior devs, and the rise of AI in coding.
• 💡 The antidote to job insecurity includes either improving one's employability or developing an entrepreneurial mindset to not rely on traditional tech jobs.
• 🤓 The importance of having deep knowledge is emphasized, as opposed to just learning the basics or following the latest trends in technology.
• 📚 Learning the fundamentals well can provide a strong foundation to understand and adapt to new technologies, as they often build upon existing concepts.
• 🛠️ The speaker encourages gaining deep knowledge in one specific area rather than superficially chasing after every new technology or framework.
• 🚀 AI is playing a significant role in the corporate world by helping companies increase their operating margins, which could lead to fewer jobs but also new opportunities for startups.
• 🌟 The future of tech jobs may involve more entrepreneurship and innovation, with AI creating opportunities for startups with lower initial investment and risk.
• 💡 The advice is to build something useful and scalable that people actually use, which can lead to significant rewards and job security.
• 🔧 Understanding the full process of software engineering, from development to deployment and iteration, is crucial for gaining deep knowledge and becoming a valuable senior engineer.
• 🥦 The analogy of choosing between 'broccoli' (fundamentals and deep knowledge) and 'candy' (new, shiny technologies) is used to illustrate the balance needed for true expertise and innovation.

Q & A

Why are tech companies laying off employees despite not showing a decline in net income?

Tech companies are laying off employees not just because they overhired during the pandemic, but also due to other factors such as the need to cut operating costs and increase efficiency, as demonstrated by Elon Musk's acquisition of Twitter.

What are the four trends mentioned in the script that are detrimental to junior developers?

The four trends are: 1) Companies overhiring during the pandemic; 2) The influence of Elon Musk's cost-cutting at Twitter; 3) Junior developers lacking deep knowledge; and 4) The rise of AI capable of coding without deep knowledge.

How does the Dunning-Krueger effect relate to the perception of one's own skills in technology?

The Dunning-Krueger effect describes a cognitive bias where individuals with low ability at a task overestimate their ability. In technology, this can manifest as junior engineers being overconfident in their skills before realizing the depth of knowledge required, leading to a loss of confidence and a period of learning humility.

What is the importance of learning the fundamentals in technology according to the script?

Learning the fundamentals is crucial because it provides a solid base from which to understand new technologies. Fundamentals don't change as rapidly as new technologies, so a strong foundation allows for easier adaptation and learning of new tools and languages.

Why is it suggested that junior developers should focus on learning one thing very well?

Focusing on learning one thing very well helps in obtaining deep knowledge in that area. It prevents the constant chase after new technologies without understanding the underlying principles, which can lead to a lack of expertise and marketability.

What is the role of AI in the tech industry's current layoffs and future job creation?

AI is playing a dual role: it is contributing to layoffs by automating tasks and reducing the need for human labor, but it is also expected to create new job opportunities by inspiring a new wave of startups with lower barriers to entry.

What is the 'Corporate OIC' mentioned in the script, and how does it relate to AI?

The term 'Corporate OIC' is a metaphor for how AI is being used by companies to slim down and become more efficient, similar to how OIC is a weight loss aid. AI is helping companies achieve higher operating margins by reducing their workforce.

What advice is given for those looking to get hired or create their own opportunities in tech?

The advice given is to build something that people actually use, emphasizing the importance of creating value and scalability. This could mean starting a startup or contributing to open-source projects to gain the skills and experience that make one valuable as a senior engineer.

Why is it beneficial for developers to understand the entire process of software engineering from end to end?

Understanding the entire process allows developers to gain deep knowledge and experience in owning a product from development to deployment. This holistic view is essential for senior engineers who are responsible for designing and overseeing systems.

What is the 'gentleman's agreement' mentioned by the speaker, and what does it entail?

The 'gentleman's agreement' is a friendly request for viewers who have enjoyed the speaker's content to subscribe to the channel. It's based on the mutual benefit of providing valuable content and receiving support from the audience.

Outlines

00:00

📉 Tech Layoffs and the Myth of Overhiring

The video begins by addressing the recent surge in tech layoffs, disputing the common narrative that overhiring during the COVID-19 pandemic is the primary cause. Instead, the speaker highlights that tech companies like Meta and PayPal have seen significant increases in net income despite reducing headcount. The layoffs are attributed to factors beyond just overhiring, including insights from Elon Musk's acquisition of Twitter and the industry's shifting dynamics. The speaker emphasizes the importance of deep knowledge over superficial skills, criticizing the tendency of junior developers and AI for lacking this depth.

05:01

🎓 The Value of Deep Knowledge in Tech

The speaker elaborates on the concept of deep knowledge in technology, contrasting it with the overconfidence seen in early learners who often suffer from the Dunning-Kruger effect. They argue that true expertise takes time to develop and is essential for long-term success. The discussion touches on the misconception that tech careers require constant learning of new technologies, stressing instead the importance of mastering fundamental concepts. By thoroughly understanding the basics, new technologies become easier to learn. The speaker advises focusing on one thing deeply rather than chasing every new trend.

🚀 The Role of AI and Opportunities in Startups

The video transitions to discussing AI's impact on the tech industry, likening AI's role to that of a corporate weight-loss drug. The speaker references Scott Galloway's article, which argues that AI will lead to both job losses and new job creation, particularly in startups. The emphasis is on the potential for new entrepreneurs to leverage AI to build successful businesses with lower risks. The speaker encourages viewers to build something valuable, even suggesting that now is an ideal time to start a tech company due to the opportunities created by AI and the current economic climate.

💡 Building Value and Gaining Deep Knowledge

Continuing on the theme of deep knowledge, the speaker highlights the importance of understanding the entire software engineering process from end to end. They contrast the shallow knowledge gained from only following the latest trends with the deep expertise developed through comprehensive learning and real-world experience. The speaker shares personal insights, noting that building a product and getting it into the hands of users is crucial for developing true expertise. They advocate for balancing the pursuit of fundamental knowledge with practical application, ultimately leading to greater career success.

📚 The Gentleman's Agreement for Content Support

The video concludes with a call to action for viewers to support the channel by subscribing. The speaker frames this as a 'gentleman's agreement,' where if viewers have enjoyed the content, they are encouraged to subscribe to enable the creation of more videos. This mutual support ensures the continued production of valuable content for the audience.

Keywords

💡Tech layoffs

Tech layoffs refer to the mass termination of employees within the technology industry. The video script discusses the recent trend of tech companies laying off employees despite seemingly good financial performance. The layoffs are not attributed to poor business but rather to other factors such as over-hiring during the pandemic and the potential for AI to replace certain roles. The term is central to the video's theme, as it sets the stage for discussing the current job market and the future of employment in tech.

💡Deep knowledge

Deep knowledge, in the context of the video, refers to a profound understanding of a subject matter, particularly in technology and coding. The script emphasizes that junior developers often lack this deep knowledge, which is crucial for advancing in their careers. It contrasts with surface-level understanding, where individuals may know just enough to get by but not enough to innovate or excel. The concept is integral to the video's message about the importance of mastering fundamentals and continuously learning to stay relevant in the tech industry.

💡Dunning Kruger effect

The Dunning Kruger effect is a cognitive bias where people with low ability at a task overestimate their ability, while those with high ability underestimate their competence. In the video, it is mentioned to describe how junior engineers might initially be overconfident in their skills, only to later realize the extent of their ignorance and lose confidence. This concept is used to highlight the importance of humility and continuous learning in the field of technology.

💡Fundamentals

Fundamentals, in the context of the video, refer to the core principles and basic concepts that form the foundation of a field or discipline, such as programming or software engineering. The script suggests that by mastering the fundamentals, one can more easily adapt to new technologies and trends. This concept is a key part of the video's advice on career development in tech, emphasizing the importance of a solid base of knowledge over chasing the latest trends.

💡AI

AI, or artificial intelligence, is the development of computer systems that can perform tasks that would normally require human intelligence, such as visual perception, speech recognition, and decision-making. The video discusses AI's role in the tech industry, suggesting that it could be a factor in job layoffs due to its ability to automate certain tasks. Additionally, AI is presented as a tool that can be harnessed by individuals to create new opportunities, such as starting a tech startup.

💡Startups

Startups are new businesses that are often seeking to develop and scale innovative products or services. The video script suggests that the current tech layoffs could lead to a 'golden age of startups' as talented individuals who have been let go may use this as an opportunity to create their own companies. The concept of startups is tied to the video's optimistic outlook on the future, where layoffs can be a catalyst for entrepreneurship and innovation.

💡LLMs (Large Language Models)

LLMs, or Large Language Models, are a type of AI that can process and generate human-like text based on the input they receive. The video mentions LLMs as a new technology that offers opportunities for those who are willing to learn and adapt. It implies that even senior developers are on a level playing field with junior developers when it comes to LLMs, suggesting that anyone can take advantage of these tools to create value.

💡End-to-end

End-to-end, in the video, refers to the complete process or workflow of software engineering, from development to deployment and user feedback. The script argues that understanding the entire end-to-end process is crucial for gaining deep knowledge and becoming a valuable senior engineer. This concept is used to encourage viewers to take ownership of projects and learn from the full lifecycle of product development.

💡Broccoli vs. Candy

The broccoli vs. candy analogy is used in the video to illustrate the balance between consuming foundational knowledge (broccoli) and pursuing the latest, often superficial, trends (candy). The video suggests that those who only 'eat candy' lack deep knowledge, while those who only 'eat broccoli' fail to create interesting projects. This analogy is central to the video's message about the importance of a balanced approach to learning and career development in tech.

💡Rust

Rust is a programming language known for its focus on safety, speed, and concurrency. In the video, Rust is mentioned in a humorous context, suggesting that while it is a valuable skill, it may not be the best choice for everyone. The script uses Rust as an example to illustrate the point that one should focus on learning something deeply, rather than superficially dabbling in many things.

Highlights

Tech layoffs are not solely due to over-hiring during the pandemic, as companies' net income is still increasing.

There are two antidotes to the tech layoffs: learning how to get hired now and considering not needing a traditional job.

Four trends are affecting junior developers: over-hiring, cost-cutting by tech giants, lack of deep knowledge among junior devs, and the rise of AI in coding.

Deep knowledge is often misunderstood, with many suffering from the Dunning-Kruger effect, thinking they know more than they do.

Fundamentals are key to staying relevant in tech; new technologies often simplify existing methods rather than introduce entirely new ones.

To gain deep knowledge, focus on learning one thing very well rather than constantly chasing the latest trends.

AI is being used as a 'Corporate OIC', helping companies cut costs and increase profits, which may threaten tech jobs.

Despite potential dystopian outcomes, AI will also create new job opportunities and could inspire a new wave of startups.

The speaker suggests building something people actually use as a way to create value and potentially start a successful tech startup.

Learning to 'fish' in the context of tech means being able to create value independently, which can lead to greater rewards.

AI has lowered the barrier for creating successful tech startups, providing opportunities for those laid off to start their own companies.

Even if not starting a startup, building a real product or contributing to an open-source project can increase one's value as an engineer.

Understanding the entire process of software engineering, from development to deployment, is crucial for gaining deep knowledge.

The speaker emphasizes the importance of balancing the pursuit of new technologies (candy) with the fundamentals (broccoli).

The transcript concludes with a 'gentleman's agreement' encouraging viewers to subscribe if they enjoy the content.

Transcripts

it's no secret that it's been harder

than ever to get a job recently there

are some really scary things about the

recent Tech layoffs that nobody wants to

admit but there's also an antidote and

actually there's two I'm going to share

both of them here so the news has been

plastered with tech layoffs every CEO

keeps saying we over hired during Co and

while that might be true it's actually

not the reason for the tech layoffs

everybody is kind of lying take a look

at this chart here we've got meta with

-3% in headcount but their net income is

up 73% Paypal down 9% up 76% people keep

telling me that there's this big

recession about to happen but it seems

like everybody's actually doing pretty

well so why are they firing people so

I'm going to talk about two things one

is how do I get hired now and two is

maybe I don't care to get hired and I

know that sounds strange but just hear

me out so there are actually Four trends

that are coming together that's detrial

for junior devs one is companies did

over hire during Co but that explains to

2022 layoffs 18 months later in 2024

that doesn't explain it two Elon Musk

bought Twitter and he showed just how

much fat truly is in a tech giant say

what you about Elon Musk but even his

biggest haters can't really deny how

much he's brought the operating cost of

Twitter down three Junior devs know how

to code but they don't have deep

knowledge and four AI knows how to code

but doesn't have deep knowledge let's

explain what the real problem is you

have no deep knowledge I feel like

there's been no shortage of content

lately about how new Junior Engineers

have no deep knowledge and honestly I

think that content is often promoted by

people that also don't have very much

deep knowledge deep knowledge is tricky

cuz every 6 months I look back and

realize just how clueless I was about a

technology I was using using 6 months

prior most people suffer from the

Dunning Krueger effect in the beginning

they learn just a little and they're

overconfident in their skills they think

they're a genius then when they realize

how much they don't know they lose all

of their confidence and it takes years

to build it back up I usually feel like

I'm somewhere in the valley despair

there's way more to any problem or

system than you could possibly know so

try to be humble the know-it-all types

tend to always be at the peak of Mount

stupid I I tend to stay away from those

people having said that I do think

there's a new age script Kitty phase

that people tend to be going through and

the answer is simple but not fun you

have to eat your

broccoli every year people tell me that

being a tech is tough cuz you have to

stay on top of the latest Technologies

honestly I've never understood that I've

never had that experience as long as you

spend a lot of time learning the

fundamentals well you'll see everything

else kind of shares the same Beginnings

for example let's say I'm learning a new

program language and I want to learn how

to write a variable easy enough but not

if you're a python script Kitty cuz in

C++ if you want to learn a variable now

you need to know static types pointers

references heat memory if I'd gone the

other way around well the python

variable would have been really easy to

learn because it's just the subset of

the C++ one usually new technologies

don't introduce a new way of doing

things they just make the old ways much

easier to do so as long as you know your

fundamentals you're fine and I guess

this would follow up to my next point

which is learn something very well if

you don't have deep knowledge you need

to obtain deep knowledge in something

now I've already made videos on my

recommendations of what programming

language is to learn I'm not going to

talk about that here I ultimately don't

really care just learn one thing really

really well don't worry about running

after the new shiny object every 2

minutes there's been an uptick in what

I'd call Tech news recently in YouTube

and Twitter it's always talking about

the latest JS framework or you know why

the new jQuery release is really

important now I do love that content I

spend a lot of time watching that

content but I don't use it as a

blueprint for what I should be doing

it's just so I can sound smar to people

when I'm at parties it has no bearing

over how much money that I can make in

my career when I say learn one thing it

it could be anything it could be a tech

stack if you're full stack person it

could be one backend framework really

well if you're backend it could be the

lady shiny JS framework if that's what

you're into whatever you get the most

Joy from learning just learn that learn

anything except rust don't learn

rust kidding kidding kidding I just

wanted to see how much of a reaction I

could get rust Fanboys don't come to my

house now everybody's being

dishonest I think let's talk about ai's

real role in all of this so strangely

before I talk about that let's talk

about OIC OIC has been taking the World

by storm they're not today's sponsor by

the way there's no sponsor today OIC is

a miracle drug that helps people lose

weight just by taking a pill the thing

is people aren't really being honest

about when they're using it they want to

pretend like they're just getting there

naturally now I was reading Scott

Galloway recently and he had this

article that was basically explaining

how AI is Corporate OIC this is such a

good article there are a few points I

want to highlight from it quote one

recent financial news features two

stories layoffs and record profits a

company lays off 5 10 even 25% of its

Workforce and 6 to 12 months later its

operating margin hits new Heights the

ultimate peanut butter and chocolate

shareholder confection is meta which

produced a singular Hall of Fame quarter

in Q4 this is actually pretty scary

because it tells us what we actually

feared which is maybe our Utopia of tech

jobs is over and to some degree I think

it is in its current form but there are

two really redeeming points in this

article I want to bring up this will

correctly raise concerns about a

dystopia where no one can find work but

AI will ultimately create jobs is there

will be new windows of attack against

corporate Titans the AI Revolution will

inspire a golden age of startups with

lower infant mortality as there will be

fewer people I.E less risk required to

run sustainably so basically there's

much more opportunity in startups and

there will be for the coming years so an

antidote to if I could sum up this

entire channel in one phrase it would be

build something that people actually use

I've been saying it for years and the

reason I've been saying it is teach a

man to fish I want you guys to

understand that coding doesn't have to

be a cute little job where you get a

nice pat on the head from Daddy meta and

possibly a paycheck if they think you're

still valuable for now you can literally

create value and you can create it in a

scalable way you can be rewarded 1,000x

for your input now I get that this isn't

what everybody wants to do in life but I

want you guys to be really conscious

about making that decision imagine

yourself as aing from Airbender I keep

telling you that you're the Avatar but

you just kind of want to keep being a

kid and have someone else take care of

you you have way more power in your own

life I'm trying to help you realize that

if you haven't already if you learn to

fish you'll realize you don't actually

need a tech job in fact this could be

the best time for you to start a startup

AI dramatically lowered the bar for

creating a sex

AI dramatically lowered the bar for

creating a new successful Tech startup

if meta can use it why can't you use it

against them specifically with llms

there's so much unlocked opportunity

that people can do and here's the thing

everybody is trying to hire a senior Dev

but senior devs have just as much llm

experience as you or I do because llms

are so new even if you decide not to

make a startup if you're currently

unemployed how could building a real

product that people actually enjoy hurt

you even if it's just an open source

project or a free product you're going

to learn the skills that make you super

valuable as a senior engineer I think

the future is full of billion dooll

companies that were started because

their Founders were laid off from kushy

tech jobs right now when it comes to

startups I just launched one one year

ago and I have to admit I've learned

more in one year than I did from 3 and 1

half years working at Microsoft I'm

going to give you some advice you don't

have to take it my goal on this channel

is to never be The Annoying knit all kid

to be that kid on the Polar Express or

Professor Umbridge and Harry

Potter so many people in the world say

you have to do everything in a very

specific way but you don't really you

just have to find what works for you and

I'm going to share what worked for me

you need to understand the entire

process of software engineering end to

end if you want to actually get deep

knowledge on anything it's one thing to

develop on Local Host it's another thing

to figure out how to get that product

into the world get people using it get

feedback and iterate on it that's what

you hire senior Engineers for you hire

senior Engineers to design these systems

and then they basically just tell the

junior Engineers what to code and

because you're stuck down down here you

have yet to experience the Deep

knowledge you can get from owning

something end to end so there's one

recurring theme that I've felt in my

computer science career and that is you

can either go for the candy or the

broccoli the people that always eat the

candy never develop deep knowledge

because they're just going for the new

shiny thing they don't understand the

fundamentals and the people that always

go for the broccoli never build anything

very interesting because they always

need to build their own custom solution

and they can't build off of the

shoulders of other people so you need to

consume just enough broccoli that you

really appreciate the candy and

understand how the candy is made my

analogy fell apart but I think you get

what I mean now I want to employ the

gentleman's agreement between you and I

if you've watched one or more of my

videos before and you enjoyed it then uh

you have to subscribe that enables me to

continue to make content for you so I'm

not going to check it's a gentleman's

agreement obviously I can't check but if

you enjoy the videos you subscribe and I

continue to make them for you that's our

Gentleman's Agreement