Technology

While you’re right that many tech companies overhired, they overhired into an increasing market. Multiple companies, including Twitter, then over-fired and ended up trying to get employees to boomerang or otherwise hire into positions that they cut. Other companies, like Apple, expanded but did not overhire, and as a result have not done mass layoffs.

I also have no idea how you come up with a 20 person IT department at every site when internet services companies live and breathe on IT services. Everything from data centers costing tens to hundreds of thousands of dollars to making sure devs can commit code and that backups get made takes IT services. I’m not sure what industry you’re in but you’re vastly under-budgeting and setting yourself up for failure, exactly the same way Elon is doing. Elon managed to crash twitter’s valuation by a whopping 90% inside of a year. If the cuts he made were justified, the line would have gone in the other direction.

Content moderators and ad sellers are literally the entire point of having a company like Twitter. Curation is the product, and the ad buyers - not the users - are the ones paying the bills.

So, yes - companies hired because they needed to hit production targets during Covid that were not sustained by continued market levels post-pandemic. That’s always going to result in cuts.

But a lot of what we’re seeing right now is upper management/c-suite types seeing how close they can cut costs to the bone without it hitting the quarterlies as production falls off and reliability tanks, and just hoping to make it out the door before that happens.