It is just business reality overcoming years of really bad decisions brought about by a huge influx of venture capital enabling their misbehavior. This isn't the first time we have seen it. The last tech bust was the same. The big difference being that the first time around, people had a stake in the startups and had a vested interest in the company doing well.
Companies that have no reason being in high dollar real estate locations paying premium wages and providing unsustainable perks to entry level positions and non-income generating personnel, often guided by leadership with absolutely zero business experience, are pretty much doomed at inception.
Look no further than the hordes of useless employees that Elon Musk dumped when he bought Twitter. What did he get rid of? I think it was like 80% of the staffing, off the top of my head. These other tech companies are set up the same way and are full of bloated staffing that doesn't generate income.
There have been some exceptions for the "fake it until you make it" mentality that have done well financially despite this but the weak economy has made it more apparent that even the big ones have problems.
A perfect example is that I ordered some stuff from Walmart the other day. I had a package delivered by UPS, then I had FedEx drive up to my house and personally hand me another package that I paid $8 for, all with free shipping. I will get two more packages, one for $6, and another with two $10 USB WiFi dongles, that drop shipped from Hong Kong, all still with free shipping. There is no reality where the profit margins on this will sustain any business. That is not even counting all the other people involved in picking the order, packaging it, and all the other logistics involved.
I really do understand the people's trauma of getting pink slips. Been there, done that, and have the T-shirt. I can't imagine going through that with the exorbitant cost of living in SF and NYC where they have a lease on an expensive apartment and probably a huge car payment for the new car they probably bought counting on the nice paychecks that they were getting. Especially living in the fantasy land of the free perks and amenities that sold them on taking the job in the first place. Living in a big city is wonderful when you have a high paying job. They are a nightmare when you are unemployed.
It is just business reality overcoming years of really bad decisions brought about by a huge influx of venture capital enabling their misbehavior. This isn't the first time we have seen it. The last tech bust was the same. The big difference being that the first time around, people had a stake in the startups and had a vested interest in the company doing well.
Companies that have no reason being in high dollar real estate locations paying premium wages and providing unsustainable perks to entry level positions and non-income generating personnel, often guided by leadership with absolutely zero business experience, are pretty much doomed at inception.
Look no further than the hordes of useless employees that Elon Musk dumped when he bought Twitter. What did he get rid of? I think it was like 80% of the staffing, off the top of my head. These other tech companies are set up the same way and are full of bloated staffing that doesn't generate income.
There have been some exceptions for the "fake it until you make it" mentality that have done well financially despite this but the weak economy has made it more apparent that even the big ones have problems.
A perfect example is that I ordered some stuff from Walmart the other day. I had a package delivered by UPS, then I had FedEx drive up to my house and personally hand me another package that I paid $8 for, all with free shipping. I will get two more packages, one for $6, and another with two $10 USB WiFi dongles, that drop shipped from Hong Kong, all still with free shipping. There is no reality where the profit margins on this will sustain any business. That is not even counting all the other people involved in picking the order, packaging it, and all the other logistics involved.
I really do understand the people's trauma of getting pink slips. Been there, done that, and have the T-shirt. I can't imagine going through that with the exorbitant cost of living in SF and NYC where they have a lease on an expensive apartment and probably a huge car payment for the new car they probably bought counting on the nice paychecks that they were getting. Especially living in the fantasy land of the free perks and amenities that sold them on taking the job in the first place. Living in a big city is wonderful when you have a high paying job. They are a nightmare when you are unemployed.