The Cloudcast Is 2024 the Year of Accountability?
Jan 14, 2024
The podcast discusses the surprising transitions and layoffs in the tech sector in 2024, addressing the reasons behind them. It explores the impact of layoffs and the tendency of companies to overestimate their needs. The chapter also delves into economic uncertainty, return to office challenges, and the shifting power dynamics between management and workers. Additionally, it discusses the dangers of relying on internet platforms and the need for adaptation in the market.
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Transcript
Episode notes
Post-Pandemic Overhire Caused 2024 Corrections
- Many tech companies overhired during the pandemic and now face a secondary correction in 2024.
- Companies often overestimate needs when growing and then make deeper cuts later to rebalance.
Unicorn Shakeout And Opportunistic Acquisitions
- A wave of struggling 2021–2022 unicorns will likely trigger bankruptcies and fire-sale acquisitions in 2024.
- Some layoffs may prepare buyers to acquire valuable assets cheaply.
Vendor Strategy Shifts Hurt Partner Workforces
- Strategic moves by dominant vendors (e.g., Broadcom) ripple through partner ecosystems and cause partner layoffs.
- Changes to partner programs can remove roles that were previously essential to those partners' businesses.