Re:Big Tech is using layoffs to crush worker power
by adra on Monday January 30, 2023 @11:40AM
(#34582288)
This has been happening for decades. The only maybe novel side of the story is that post COVID, there may be a hope that remote workers are paid at least respectable wages vs their head office peers living in extraordinarily expensive cities.
That hurts the developed cities and countries more than the individuals though. Expect a lot of heat out of civic conferences the next few years as they start to re-assess their budgets/roles.
Some equalization is only fair in the end. Your output / cost should be the same as any other. Not all developing economies have talent that can fit these companies today, but there's no reason that can't change tomorrow.
The major gap from my perspective is fair and equitable ways of gauging performance (tech specifically but in general).
Re:Big Tech is using layoffs to crush worker power
by glass3 on Monday January 30, 2023 @11:59AM
(#34582667)
The broader global talent pool could kick in the Jevons paradox [1]. Software eats everything and even more talent could be needed to maintain a lead. When more value is derived from software in the value chain, the market leaders can then hand out even more resources as salaries.
- The economics of supply and demand will swing back to software engineers in the short term, because there aren't enough of us to power every tech company's product roadmap on their desired timeline.
- Laid off workers will start new companies that will threaten the companies that laid them off.
- The macro environment will swing back eventually to favor fast growth.
Long term is bad [1], though:
- Tech is going global. Europe, Latin America, India, the rest of Asia, and emerging economies all over the world are raising venture capital and hiring substantially cheaper local talent. These companies will put downwards economic pressures on US companies' unlimited growth stories, worldwide monopoly statuses, and thus their ability to pay lavish salaries.
- Also, a broader global talent pool will put downward pressures on salaries.
- Much more hypothetical, but the emergence of AI tools could put additional pressure on engineers. It's unclear how much or to what extent, but it could be a big impact.
[1] Tech going worldwide is fantastic for workers in growing economies. They'll quickly move up the socioeconomic ladder, and that's a good thing. As long as AI doesn't eat their lunch first.