Since the beginning of 2022, 172,000 people in tech have been laid off according to layoffs.fyi. The majority of these layoffs come as a result of over-hiring during the pandemic boom, and these companies find themselves overstaffed when the federal reserve raised interest rates and business declines.
These 2 years have been a rollercoaster and we have witnessed some of the most poorly handled layoffs in decades. From the infamous Better.com layoffs in 2021 to the more recent Salesforce layoffs at the start of 2023.
In a recent linkedin post, a user notes how they went to a basketball game on the same day that Salesforce announced job cuts in the 10,000 range. He noted that corporate executives sat in the salesforce box, and the arena boasted slack advertisements. Another user comments, “You should see the jets”.
The Jet
Benioff flies the Gulfstream G650ER, the same model flown by Elon Musk. It costs roughly $66.5 million.
In 2018, CNBC reported that Execs at salesforce received compensation upwards of $1 million for travel and security. As of January 7, 2023, salesforce has announced no plans to cut back on luxury spending on Jets, box seats, and the occasional $40,000 watch for executives.
The Lesson
What did we learn from the salesforce layoff and the many other layoffs over the last 3 years?
That your work family, is not your real family. That you can be laid off for any reason at any time regardless how much you put into your job. You can go above and beyond, make the company millions, and still be locked out of your computer and sent a fedex box with a prepaid return label.
How This Changes Things
The working environment has certainly shifted since the employee/employer dynamic has shifted over the pandemic. The so called gusto and overwhelming hustle culture prevalent in America seems to be fading towards a more work/life balance oriented culture.
Employees are less willing to go above and beyond because the rewards promised to them rarely manifest, or they are met with a layoff at the end of a difficult road.
American workers, for the longest time, have been motivated off of incentives. As a result, GDP has grown remarkably since 1980. But the incentives are less now, and middle management is forced to use a stronger fist to force labor output. Because of this, we will see more combative relationships between front line workers and management than we are accustom.