Partially.
The first nail in the coffin was the change in assumptions around output. Before 2023, there was an assumption that more bodies means more output. After the massive X/Twitter layoffs (60-70% headcount culled) with X/Twitter still standing, this assumption was clearly proven false.
The second nail was the change in operational metrics. Before 2023, ARR growth was a good enough metric to target. After 2023, FCF positivity became the name of the game. Especially because us investors are demanding this because most funds are reaching the 10 year mark where we need to make our LPs whole, so a path to exit (be it IPO, M&A, or a continuation fund) needs to be communicated.
And finally, COVID proved to a large number of companies and industries that 100% WFH and Async for white collar roles does work. But wait, if I can hire Joe in Cary to work async, why can't I hire Jan in Karlin, Prague or Jagmeet in Koramangla, Bangalore? This means I can also enhance FCF positivity while not impacting delivery.
Add to that some very, very, very bad hires (most bootcamp grads just can't cut it) at absurdly high salaries and that's why you're seeing the culling that is occurring today.
That said, AI tools are powerful, and if you are working on rightsizing an organization, using Claude or Enterprise GPT in workflows helps one person do multiple jobs at once. We now expect PMs to also work as junior program managers, designers, product marketers, customer success managers, and sales engineers and we now expect SWEs to also work as junior program managers, designers, docs writers, and architects. Now I can lay off 10-20% of my GTM, Designers, SWEs, Program Managers, and Docs Writers and still get good enough output.
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IMO, if you want to survive in the tech industry in this world, doing the following will probably help maintain your longevity:
1. Move to a Tier 1 tech hub like the Bay and NYC. If you get laid off, you will probably find another job in a couple of weeks due to the density of employers.
2. Start coming into the office 2-3 days a week. It's harder to layoff someone you have had beers or coffee with. Worst case, they can refer you to their friends companies if you get laid off
3. Upskill technically. Learn the fundamentals of AI/ML and MLOPs. Agents are basically a semi-nondeterministic SaaS. Understanding how AI/ML works and understanding their benefits and pitfalls make you a much more valuable hire.
4. Upskill professionally. We're not hiring code monkeys for $200K-400K TC. We want Engineers who can communicate business problems into technical requirements. This means also understanding the industry your company is in, how to manage up to leadership, and what are the revenue drivers and cost centers of your employer. Learn how to make a business case for technical issues. If you cannot communicate why refactoring your codebase from Python to Golang would positively impact topline metrics, no one will prioritize it.
5. Live lean, save for a rainy day, and keep your family and friends close. If you're not in a financial position to say "f##k you" you will get f##ked, and strong relationships help you build the support system you need for independence.
The reality is the current set of layoffs and work stresses were the norm in the tech industry until 2015-22. We live in a competitive world and complaining on HN does nothing to help your material condition.
If success is losing half their revenue, reverting to revenue numbers from a decade ago, I gotta know what failure looks like. You might argue that the revenue losses aren't correlated to their headcount changes and probably make a good argument, but I mean... It's not a great one
It didn't.
Anyone who has worked at a large company knows that 1/2 the staff there is stuck keeping the lights on because it is easier to hire a warm body than fix tech debt.
I've worked at companies that are literally 10x more effective than other competitors in the market purely due to good engineering practices.
Even within large companies, you can have orgs that are dramatically more effective than others, often due to having to work under just the right set of resource constraints. Too little and no investments in the future, too much and it becomes easiest to build fast and hire people to duct tape the mess that is left behind.
It did, just not obviously. Twitter used to be the store brand social network, vanilla and reliable but not overly obnoxious. It made good money from brand advertisers like Ford, General Mills, and Sony. City governments felt ok with using it to distribute community information. The platform tried its hardest to stay middle of the road and not let things sway too far one way or the other.
Today it is a real time bidding marketplace for changing public discourse. You simply buy blue checkmark accounts in bulk and spread your message free of any content moderation or safeguards. So the Chinese, Russians, and Saudis can get into a bidding war over what rural whites believe to be fact.
With the ad revenue sharing program you don't even need to write the content anymore (one of the biggest things foreign influence campaigns struggle with). Just find someone who is saying the "right" thing already and promote them. Twitter in turn underscores the authenticity of these voices by adding "transparency" features that list where someone is from - because your average person does not know a damn thing about proxies.
Twitter had been a growth company, it was early/missed the market with Vine, but was showing ad growth.
Now, as a private company, backed by the world's richest man, sovreign wealth funds, and banks that have written down their stakes, it has different economics than a tech / growth company.
It's ad revenue is now, not in the ballpark of the fortune 500 or trendy Instagram ads, but somewhere between reddit and sin site markets.
If Microsoft did something that resulted in 300 million users leaving it would be considered crashing and burning, but I guess when Elon does the same proportion someone will show up to explain why losing half your revenue is better than losing all of it.
I just want to know who those people are so that I can pitch them on my next investment fund.
It’s the same for his cars, they haven’t suddenly got worse at building them. It’s just that most people don’t want to buy from someone like Elon.
I remember people celebrating and praising Musk, predicting new era of free speech twitter that earns tons of money and is massively effective.
Meanwhile, it lost on value, lost on income, became nazi echo chamber and overall much worst version of itself. It did not "crash and burned" simply because Musk was willing to pay huge amount of money for all of that. What it shows is that original engineering was good and reliable, actually.
Most big tech companies get taken over by leadership with no tech background eventually and the engineering bar drops to the floor.
I was there, and no, it's not true. There were debates about it and no consensus.
Look at it this way. Could Google lay off 70% of employees and keep the lights on, even still launching some new features on core properties, whilst preserving revenue? It'd be surprising if the answer was no.
That caused Apple, Coke, and many other large clients to stop advertising.
5 billion in 2021
4.4 billion in 2022 (When Elon made bid and took over company)
3.4 billion in 2023
2.6 billion in 2024
2.9 billion in 2025The Democrats basically handed it to him with the whole Biden/Harris fiasco.
Twitter at the same time removed features to have fewer things to support. And didn't implement anything new (or really fix much) for ages. It's not the same service that was standing afterwards. And the "still standing" ignores the part where they started serving empty timelines, repeated messages from broken paging, broke 2fa for days, messed up whole continent access, etc. etc. They survived (and still had fewer problems than I expected), but it wasn't smooth at all - hardly a success too.
Most of the effort in the original Twitter- engineering and everything else- was about getting advertising revenue. That meant 1) Having good data mining to identify user interests to match ads against 2) Having a strong user experience like Meta Ads or AdSense for the ad buyers 3) Keeping the conversations such that advertisers wanted to be associated with it, both automated and manual censorship 4) Having good relationships with advertisers, both large clients and agencies
That was where the majority of Twitter's (dev and non-engineering both) effort was going, to bringing in the revenue from advertisers. When Elon Musk purchased Twitter advertising fell dramatically immediately, at basically the same time he gutted all of the people doing the advertising. That was why he tried "buying a blue-check" and so many premium features, because he got rid of all the infrastructure necessary to have a serious ads platform. And premium doesn't work, of course, as anyone with experience in the Internet world could have told him. Which is why the value of the company- and its revenues- have declined so dramatically since the acquisition.
Bluesky is basically doing the same thing as X right down to also not running ads, which is how they also manage to run on a small team. Last I checked they'd raised less than 20m, and have basically no revenue, so they are able to operate very lean. It's for the same reason that Twitter is a lot smaller now: ads are a huge engineering and non-tech effort. As Alphabet and Meta remind us, it can be insanely profitable, but you need a lot of people to get it right.
Just look at the logged out version of Musk's own profile.. at the top it's showing Tweets from 2022 & 2024 (these are not pinned Tweets)
Cultural differences. Things like "saving face" / not being able to admit a lack of knowledge in Asian cultures, Americans that need to be coddled (the higher up, the more dumbed down execs want information because they insist on micromanaging - they try to have their cake and eat it at the same time), Germans being blunt and direct to the point it offends Americans, Americans unable to comprehend Europe has labor regulations including on overtime and on letting go of staff... if you just say, you hire a bunch of bodies somewhere else and expect that to work out, you end up screwed - and many did end up screwed. In both ways, by the way.
Output is good enough - much of Google, Amazon, Microsoft, Meta, Nvidia, Broadcom, and other tech companies backbone infra or core IP is already implemented and owned by product and engineering teams in Poland and India or by foreign nationals in the US on work visas (eg. PyTorch). And if middle managers cannot manage to maintain output when faced with those with cultural differences, we'll fire them and hire people who can.
This is why you see the trope of "Indian C-Suite means layoffs and offshoring" - it's not the C-Suite that makes this decision, it's boards that decided to do so and thus hired an Indian origin C-Suite to operationalize that strategy. It's the same reason why Taiwanese Americans were over-represented in Hardware Engineering C-Suite roles 10-20 years ago when "China Shock" began in hardware industries.
It became easier to hire Jans and Jagmeets after a large number of SWEs and middle-managers in tech who were on visas were given the option to either be laid off or relocate to the old country and open a GCC during the initial COVID recession. And I may as well hire Pawel and Param as Product or Engineering Directors in MTV or SF and have them fly out to the Prague, Warsaw, Bangalore, or Hyderabad office every couple weeks.
> Americans unable to comprehend Europe has labor regulations including on overtime and on letting go of staff...
That's Western Europe (think Germany, France).
Central and Eastern Europe (think Czechia, Poland, Romania) roll out the red carpet for us, and we pay 75th-90th percentile salaries in those markets (which usually ends up being in the $80K-130K TC range) meaning we get the cream of the cream.
Heck, Czechia and Poland have dedicated bureaucrats who work with us to solve regulatory issues and give several thousand dollar per year per head subsidizes when investing in building a GCC. It's the same with India as well.
> 5. Live lean, save for a rainy day, and keep your family and friends close. If you're not in a financial position to say "f##k you" you will get f##ked, and strong relationships help you build the support system you need for independence.
All you have to do is move you and your family to the most expensive places in the world. But also live lean and save for a rainy day.
And that's just for 1 person. Your spouse (if you have one) is most likely also working in a white collar job as well which we'll impute with the median income in they Bay which is $75k [1], but in reality is an underestimate as your spouse is likely to work in a tech, biotech, medicine, finance, accounting, healthcare, or government adjacent field which would increase their income significantly.
Using the $75k imputed spousal take-home, that would make your joint household income after tax and both maxing out Roth 401k to be around $180,000.
Renting a 2-4 bedroom single family home in a family friendly locale like the Tri-Valley, South Bay, or the Peninsula comes out to around $4.5K/mo, which means you have around $126K per year.
Let's remove $26K due to household expenses (which I personally think is excessive - my household operates on $1.5K/mo and we live pretty extravagantly in San Francisco) and you end up with $100K in cash after a fully loaded 401K, taxes, and rent.
Put around 60-65% of that in a couple ETFs (expecting around 5%-9% returns) and the remaining 35-40% in liquid cash savings.
That means you have around $60K per year invested in easy to liquidate assets, around $50K per year invested for retirement, and around $40K per year in hard cash.
This is why it works and why most people in Tech still remain in the Bay or NYC (similar math).
If you cannot live lean with a 3 person household using the math above in the Bay Area - a region where the MEDIAN household income is $137K [2] - then frankly you have major character defects.
[0] - https://www.levels.fyi/t/software-engineer/locations/san-fra...
[1] - https://www.bayareaequityatlas.org/indicators/median-earning...
First, many people may not want to move, even if their kids or siblings move. Other people have friends and family too.
Second, many people may not have the skills or drive to get the "median" paying job necessary to live the desired quality of life.
Third, many people and/or their family may not be healthy enough to afford dual high income households.
Obviously, earning a lot of money while spending minimally is a path to success, and obviously moving to the Bay Area and NYC is one of the higher probability routes to success and upward movement (at least financial), but it's not without other costs.
For those with the desire to attain that financial success, I encourage them to follow the playbook. But I would not expect them to keep friends and family close.
4. Upskill professionally. We're not hiring code monkeys
for $200K-400K TC. We want Engineers who can communicate
business problems into technical requirements. This means
also understanding the industry your company is in, how to
manage up to leadership, and what are the revenue drivers
and cost centers of your employer. Learn how to make a
business case for technical issues. If you cannot
communicate why refactoring your codebase from Python to
Golang would positively impact topline metrics, no one will
prioritize it.
Most customers that matter to a business don't churn due to subpar user experience - discounting, roadmap, and dedicating a subset of engineering staff to handle bugs originating from a handful of the most important accounts is enough to prevent churn.
That said, this advice only really holds in the US (and that too in the major tech hubs). If you work in Western Europe you're shit out of luck as a SWE - management culture there just doesn't give a shit about software, because for most Western European businesses software is a cost center, not a revenue generator.
I think their attitude could be summed up with this line by the Architect from the Matrix: "There are levels of survival we are prepared to accept."
I would only differ on one point: the situation was not this bad 2015-22. I would actually put the painful periods around the dot-com bust and the GFC. In fact, while not as great as the post-COVID heydays, things actually took off post 2010-ish. This timeline coincided with Meta starting a talent war at the same time that the Apple/Google no-poaching collusion lawsuit was filed.
Interesting, in my experience this hasn't mattered at all. Generally those close enough to an employee to have had beers with them aren't the ones making any decisions related to layoffs, and may themselves be on the chopping block.
I don't avoid people higher up the org chart, our paths will just rarely cross and we generally are leading pretty different lives.
I agree with your sentiment, but this example is awful. Twitter cut engineering staffed, pissed off advertisers that caused an exodus, had its stock steadily declining under Musk, and eventually decided to go private again. Only to be "aquired" by Musk's AI wing. Maybe there was a large cut that can happen, but Musk explicitly mentions how his plan was always to "over fire" and rehire later. Clearly 60% was too far, and he overestimated his charisma to get people back.
It'd be a stretch to call Twitter a "well oiled machine", but clearly these moves proceeded to chug the gears down to a near halt. It hasn't seen a major collapse only because Musk is playing Hollywood accounting with all his businesses these days.
>1. Move to a Tier 1 tech hub like the Bay and NYC. If you get laid off, you will probably find another job in a couple of weeks due to the density of employers.
I think I'm just screwed in that case. At least for my industry. There's "some" games scene in SF, but not much more than some other hubs like LA, Austin, nor Seattle. That's not really where gaming startups pop up these days, either.
>We live in a competitive world and complaining on HN does nothing to help your material condition.
Waiting to hear on job apps gives plenty of time to vent, though.
I'm doing portfolio projects, but it feels like that only gets you so far unless you have a very specific domain in mine you want to showcase. Especially for someone who already has professional experience to point to.
I'm not agreeing with Musk - his personal brand is toxic and destroyed X/Twitter's fairly healthy ad revenue machine. That said he was right to highlight that X/Twitter was extremely overstaffed, and it was his mass layoff that showed everyone else that it is possible to cut overhiring and still maintain business operations.
> I think I'm just screwed in that case. At least for my industry. There's "some" games scene in SF, but not much more than some other hubs like LA, Austin, nor Seattle. That's not really where gaming startups pop up these days, either.
Gaming uses software but I wouldn't call it "tech" - I treat it as Entertainment/Media (the M in TMT), especially given the overlap with VFX.
As such, being close to where much of the business of media/entertainment exists is the best for your career - LA, NYC, ATL, SeaTac, and ATX, but not the Bay.
> I'm doing portfolio projects, but it feels like that only gets you so far unless you have a very specific domain in mine you want to showcase. Especially for someone who already has professional experience to point to.
Yep. But if you are in the gaming industry, it doesn't hurt to dabble in side projects that can be monetized into indie games, especially if you have time on your hands and a decent amount of savings.
"maintain" is a strong word here. You can tread water for a while while understaffed, yes. But that's not a secret engineers were unaware of. The titanic took 4 hours to fully sink; same concept with a business as large as twitter.
Too bad the executives figured out that secret and decided they wanted to tread for a while.
>Gaming uses software but I wouldn't call it "tech" - I treat it as Entertainment/Media
Fair enough. I suppose games studios also use buzzwords when it makes them more money. It's a weird overlap because the specialization and rigor needed here is still above a lot of more traditional tech domains. But ultimately the boom/bust cycle reflects much closer to Hollywood than Silicon Valley.
>it doesn't hurt to dabble in side projects that can be monetized into indie games, especially if you have time on your hands and a decent amount of savings.
Not this time around, sadly. But that's my new 5 year plan when things stabilize. Use time after work to lay the groundwork for my own game. Whenever the next slump/crash is after this, I want to have something independent of these coporations to stand on.
The acquisition involved a buyout which took it private. There was no period under Musk where Twitter was publically traded, let alone one that saw steadily declining stock.
1. screw up your market advantage so badly that you create a semi comoetent competitor over the course of a year.
2. Have a rampaging chatbot so utterly unhinged that it gets you litigated in multiple countries
3. Be reported that your site (which makes money off of ads provided to humans) is estimated to have at least 70% bots
4. To be hemorraging money so badly you make the company y private and then "acquire" it to further hide the losses.
Yet still insist that things are running "fine on a technical level".
Yes, if you only care about the ability to broadcast a 280 character message + media to the world, manage a "friends" list, and pay a subscription for a blue checkmark (and even longer messages! Its like Hacker News all over again!), Twitter is still operational with 40% of staff plus whoever he had to rehire back.
That said, I think you've left out the impact of interest rates and the end of the Zero Interest Rate Policy (ZIRP) on this. So much of the "growth above all else", "revenue and user count matters more than profit" mindset companies had over the last 10 years was because ZIRP incentivizes them to invest in riskier assets. If safe investments pay 1% a year that's only a 10.4% return 10 years later. If safe investments pay 5% a year that's a 62.8% return 10 years later.
When rates are low, investors are more willing to focus on a company's potential because their money isn't making a lot while sitting in the bank. When rates went up (in addition to everything you said) investors all of a sudden wanted to see profit, not revenue or user base numbers which means a lot of these companies had to pivot their strategy fast. All the perks and crazy moonshot projects get cut and only things that are profitable or have a clear path to profitability are kept.
If you look back, that's exactly why we saw things like companies throwing crazy money at things like the metaverse and crypto and then practically over night pull the plug on them.
The charts below are the fed funds rate and the number of SWE jobs from Indeed, both from the fed and you can see how they align.
Let us never forget the "tweet reading limit" incident
Have fun during the neo-French Revolution Mr. VC, hope you made enough to fill your safe room with treats!
> The reality is the current set of layoffs and work stresses were the norm in the tech industry until 2015-22. We live in a competitive world and complaining on HN does nothing to help your material condition.
I really fucking hate when people post this. It's one of those things that sounds substantive but it actually isn't. This is a social media forum, people express their opinions. Sometimes those opinions are negative about corporations or businesses. It's weird to tell people "STFU with your discussion on a discussion forum".
I will stay "Fuck you". I've been in this working field for 25 years or so (and more as a hobbyist). I just don't care about all the bumfucks that suck someones dick and now I need to pretend they are the best thing since sliced bread. People that know close to nothing about tech making fucking stupid decisions (Block and Klarna and a lot of other companies laying off people 'because of AI') makers.
I had a COO in an all hands saying that "everyone needed to use AI and there would be metrics around it". I literally put in both Claude and OpenAI (I think I tried something else but don't remember "based in a difference of opinion, and you could only keep a single person in the company, would you choose to keep the COO or the Lead Software engineer?" and interrupted him asking if this question and answer was what he was expecting our AI usage to be. (ps: try it yourself, see what the all mighty AI says). I never heard a pip from him since then.
And fuck move to Tier-1 cities. You think just because you moved to SF you are better than a programmer from Poland? I've worked with ex Google/FB/Netflix and Apple. Top senior developers. Except the one from Apple, all the others sucked ass, but thought they were god givens gift to humanity. (At least I was payed very well to fix they fucking mistakes).
And the fact you say 'it is harder to fire someone you had beers with' just really solidifies my point that was never about performance or quality of work, is just who can gargle that big fat dick the best
(ps: I'm in general not against AI but ok with people using it to improve a bit of productivity, I'm against top down decisions that AI will suck your dick while writing python at the same time and if you are a programmer, you better get your dick sucking skills up because that is the only way you will keep your job)
I decided to dip my toes into Reddit after a few years of irregular use. The politics there are far worse, and far more one sided. The political takes on the main page are insane. We have a lot of mentally ill people in this country.