Key insights

• 💼 Tech companies, including startups, used to offer extravagant extras and incentives to attract and retain employees.
• 📉 Layoffs in the tech industry have become frequent, with major companies cutting hundreds or thousands of jobs.
• 🔄 High interest rates and a pivot to generative AI have contributed to the surge in layoffs, leading to a shift in workers' perceptions of the industry.
• 🔐 Working for big tech no longer offers the same sense of security and purpose as before.
• 📱 Tech industry dominance in the 2010s was fueled by low interest rates, venture capital money, and smartphone adoption.
• 📈 Netflix and Microsoft stocks surged, while the industry saw a surge in job postings and hiring during the pandemic.
• 🚫 Tech layoffs show no signs of letting up, despite the strong US economy.
• 🎓 Shift from tech majors applying to internet and software companies to government jobs due to concerns about job stability in Big Tech.

Q&A

• What advice is offered to early talent interested in the tech industry?

  The appeal of the tech industry to early talent is changing, with big companies no longer seen as disruptors but as established entities. Early talent should consider smaller companies, keep their options open, and temper their expectations.

• What has been the trend in college students' job application preferences?

  College students' job application trends have shifted towards government jobs due to the desire for stability and concerns about layoffs in Big Tech. There is a growing interest in other industries for better job security.

• How has the perception of working for big tech companies changed?

  Working for big tech companies no longer offers the same sense of security and purpose as before. Tech industry is being recognized as similar to traditional industries in terms of job security.

• What contributed to the tech industry's dominance in the 2010s?

  The tech industry's dominance in the 2010s was influenced by low interest rates, venture capital money, and smartphone adoption. However, the industry has faced challenges, especially during the pandemic.

• Which companies are listed in Fortune's top 100 best companies to work for?

  The top 100 best companies to work for, according to Fortune, include Google, Netflix, Salesforce, Airbnb, and Pandora. These companies offer exceptional perks and benefits for their employees.

• What is the current state of the job market in the tech industry?

  Layoffs have become common in the tech industry in recent years, with major companies cutting hundreds or thousands of jobs. While there was a surge in hiring in 2021-22, layoffs have increased in 2023-24 due to post-Covid consumer demand.

• 00:00 The tech industry used to offer lavish perks and incentives, but as of 2020s, layoffs have become a common occurrence, leading to a shift in how workers perceive the industry.
• 01:52 The high expectations and allure of working in the tech industry have diminished as layoffs and instability become more common, revealing that tech companies operate similarly to traditional ones. The industry's dominance in the 2010s was influenced by low interest rates, venture capital money, and smartphone adoption.
• 03:56 Tech stocks like Netflix and Microsoft surged as the industry saw growth, but faced challenges during the pandemic. Working for major tech companies was seen as prestigious and provided advantage for future job opportunities. The industry experienced a surge in job postings and hiring during the pandemic.
• 06:03 The tech industry saw a surge in hiring in 2021-22, but layoffs have become more common in 2023-24 due to post-Covid consumer demand. Investors now favor profitability over growth, and tech companies have embraced efficiency through layoffs, showing no signs of stopping. However, the labor market remains strong.
• 08:11 College students' job application trends have shifted towards government jobs due to the desire for stability and concerns about layoffs in Big Tech. Despite the allure of tech jobs, there is a growing interest in other industries for better job security.
• 10:10 The tech industry's appeal to early talent is changing, with big companies no longer seen as disruptors but as established entities. Early talent should keep their options open, focus on smaller companies, and temper their expectations.