beginning of end of tech outperformance - linkedin to layoff 6%

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SB1234
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beginning of end of tech outperformance - linkedin to layoff 6%

Post by SB1234 »

https://www.cnbc.com/2020/07/21/linkedi ... iring.html
Is this (LinkedIn layoff) the proverbial canary in the coal mine? Lots of high paying jobs being advertised and being recruited on LinkedIn. In the economy if less new high paying jobs, then also less capital being deployed. As we know lots of new capital has been going to tech startups and cloud migration. Is this a signal that at least for the moment, there will be a change from this trend.

Is this the first shoe to drop in terms of tech out-performance? Maybe.
Last edited by SB1234 on Tue Jul 21, 2020 7:53 pm, edited 2 times in total.
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Normchad
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by Normchad »

SB1234 wrote: Tue Jul 21, 2020 5:56 pm https://www.cnbc.com/2020/07/21/linkedi ... iring.html

Is this the first shoe to drop in terms of tech out-performance? Maybe.
I am gobsmacked that LinkedIn has around 15,000 employees. What on earth are they all doing?

Sounds like a good move to me. They could probably cut a lot more without noticing......
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by arcticpineapplecorp. »

Normchad wrote: Tue Jul 21, 2020 6:12 pm
SB1234 wrote: Tue Jul 21, 2020 5:56 pm https://www.cnbc.com/2020/07/21/linkedi ... iring.html

Is this the first shoe to drop in terms of tech out-performance? Maybe.
I am gobsmacked that LinkedIn has around 15,000 employees. What on earth are they all doing?

Sounds like a good move to me. They could probably cut a lot more without noticing......
https://www.vox.com/2018/5/8/17308744/b ... -karl-marx

there's a lot of unnecessary jobs out there. most of them pay pretty well.
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by Normchad »

arcticpineapplecorp. wrote: Tue Jul 21, 2020 6:35 pm
Normchad wrote: Tue Jul 21, 2020 6:12 pm
SB1234 wrote: Tue Jul 21, 2020 5:56 pm https://www.cnbc.com/2020/07/21/linkedi ... iring.html

Is this the first shoe to drop in terms of tech out-performance? Maybe.
I am gobsmacked that LinkedIn has around 15,000 employees. What on earth are they all doing?

Sounds like a good move to me. They could probably cut a lot more without noticing......
https://www.vox.com/2018/5/8/17308744/b ... -karl-marx

there's a lot of unnecessary jobs out there. most of them pay pretty well.
Yes indeed! And so, it’s healthy for businesses to cull the herd periodically. This should ultimately make them stronger and more profitable. And as index investors, that is good news for us!
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by SB1234 »

Normchad wrote: Tue Jul 21, 2020 6:42 pm
arcticpineapplecorp. wrote: Tue Jul 21, 2020 6:35 pm
Normchad wrote: Tue Jul 21, 2020 6:12 pm
SB1234 wrote: Tue Jul 21, 2020 5:56 pm https://www.cnbc.com/2020/07/21/linkedi ... iring.html

Is this the first shoe to drop in terms of tech out-performance? Maybe.
I am gobsmacked that LinkedIn has around 15,000 employees. What on earth are they all doing?

Sounds like a good move to me. They could probably cut a lot more without noticing......
https://www.vox.com/2018/5/8/17308744/b ... -karl-marx

there's a lot of unnecessary jobs out there. most of them pay pretty well.
Yes indeed! And so, it’s healthy for businesses to cull the herd periodically. This should ultimately make them stronger and more profitable. And as index investors, that is good news for us!
Yes but is this (LinkedIn layoff) the proverbial canary in the coal mine? Lots of high paying jobs being advertised and being recruited on LinkedIn. In the economy if less new high paying jobs, then also less capital being deployed. As we know lots of new capital has been going to tech startups and cloud migration. Is this a signal that at least for the moment, there will be a change from this trend.
anecdotes are not data
Normchad
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by Normchad »

SB1234 wrote: Tue Jul 21, 2020 6:48 pm
Normchad wrote: Tue Jul 21, 2020 6:42 pm
arcticpineapplecorp. wrote: Tue Jul 21, 2020 6:35 pm
Normchad wrote: Tue Jul 21, 2020 6:12 pm
SB1234 wrote: Tue Jul 21, 2020 5:56 pm https://www.cnbc.com/2020/07/21/linkedi ... iring.html

Is this the first shoe to drop in terms of tech out-performance? Maybe.
I am gobsmacked that LinkedIn has around 15,000 employees. What on earth are they all doing?

Sounds like a good move to me. They could probably cut a lot more without noticing......
https://www.vox.com/2018/5/8/17308744/b ... -karl-marx

there's a lot of unnecessary jobs out there. most of them pay pretty well.
Yes indeed! And so, it’s healthy for businesses to cull the herd periodically. This should ultimately make them stronger and more profitable. And as index investors, that is good news for us!
Yes but is this (LinkedIn layoff) the proverbial canary in the coal mine? Lots of high paying jobs being advertised and being recruited on LinkedIn. In the economy if less new high paying jobs, then also less capital being deployed. As we know lots of new capital has been going to tech startups and cloud migration. Is this a signal that at least for the moment, there will be a change from this trend.
Ok, I gotcha. Thanks for rephrasing.

That is a great question. And I don’t know the answer.

Since this is LinkedIn, and they are all about helping people change jobs, does this lay-off portend other, bigger employment problems in the economy?

Man, that is an amazing question. I don’t personally use Linked, but I use recruiters who use it heavily.

It will be interesting to see what others think. Is this just a LinkedIn problem, or something bigger?
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by Dottie57 »

As long as Covid is around it will hurt the economy and therefore companies in the economy.

Not sure what will happen, but Idoubt that LinkedIn is the canary in the mine.
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by RickyAZ »

Who says there's less capital being deployed? More likely they're redirecting to non human usage, find a tech solution to replace whole departments. Those uses coincidentally line up with the tech heavy stocks floating the market. For instance, Shopify helps businesses set up online stores, no need for malls and retail employees. No need to advertise anywhere but Facebook/Instagram. Presto, dozens of jobs gone in the marketing department.

As far as I've seen there's boatloads of cash out there looking for opportunities just maybe not those that involve hiring or retaining large numbers of human beings.
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by SB1234 »

RickyAZ wrote: Tue Jul 21, 2020 7:11 pm As far as I've seen there's boatloads of cash out there looking for opportunities just maybe not those that involve hiring or retaining large numbers of human beings.
Agree with your assessment about current conditions. But I think this news is a forward looking indicator.
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by tibbitts »

SB1234 wrote: Tue Jul 21, 2020 5:56 pm https://www.cnbc.com/2020/07/21/linkedi ... iring.html
Is this (LinkedIn layoff) the proverbial canary in the coal mine? Lots of high paying jobs being advertised and being recruited on LinkedIn. In the economy if less new high paying jobs, then also less capital being deployed. As we know lots of new capital has been going to tech startups and cloud migration. Is this a signal that at least for the moment, there will be a change from this tr

Is this the first shoe to drop in terms of tech out-performance? Maybe.
Wow are you ever asking that on the wrong forum.
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by RocketShipTech »

Normchad wrote: Tue Jul 21, 2020 6:12 pm
SB1234 wrote: Tue Jul 21, 2020 5:56 pm https://www.cnbc.com/2020/07/21/linkedi ... iring.html

Is this the first shoe to drop in terms of tech out-performance? Maybe.
I am gobsmacked that LinkedIn has around 15,000 employees. What on earth are they all doing?

Sounds like a good move to me. They could probably cut a lot more without noticing......
Why is this so surprising?

Literally every company of size in the world has a LinkedIn profile, and LinkedIn has an account manager tagged to every one of them to sell them platform services and a customer success manager to make sure they are happy and buy more. And all the supporting staff to make sure the customer-facing teams have the data they need to sell effectively, and on, and on.

15,000 employees in both R&D and S&M supporting a global operation sounds low to me honestly.
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by TechGuy365 »

SB1234 wrote: Tue Jul 21, 2020 5:56 pm https://www.cnbc.com/2020/07/21/linkedi ... iring.html
Is this (LinkedIn layoff) the proverbial canary in the coal mine? Lots of high paying jobs being advertised and being recruited on LinkedIn. In the economy if less new high paying jobs, then also less capital being deployed. As we know lots of new capital has been going to tech startups and cloud migration. Is this a signal that at least for the moment, there will be a change from this trend.

Is this the first shoe to drop in terms of tech out-performance? Maybe.
No. I think this is just a natural cycle of business. Looking from an outsider's perspective, the news report says this impacted LinkedIn's "global sales and talent acquisition teams". This makes sense because during Covid-19 job recruiting is impacted. Companies are not hiring, why would you need a bunch of recruiters. It is beneficial for technology companies to refresh their workforce with current needs; most of the time the impacted employees are encouraged to apply for new positions, and sometimes the new positions are of higher level/higher pay.

Additionally, Microsoft (who owns LinkedIn) recently announced an initiative to "help 25 million people worldwide acquire new digital skills needed for the COVID-19 economy" (source: https://news.microsoft.com/2020/06/30/m ... 9-economy/) and LinkedIn is an important piece of the re-skilling initiative. Quote from the article:

"This is a comprehensive technology initiative that will build on data and digital technology. It starts with data on jobs and skills from the LinkedIn Economic Graph. It provides free access to content in LinkedIn Learning, Microsoft Learn and the GitHub Learning Lab, and couples those with Microsoft Certifications and LinkedIn job seeking tools. These resources can all be accessed at a central location, https://opportunity.linkedin.com, and will be broadly available online in four languages: English, French, German and Spanish."

Sounds like Microsoft has big plans for LinkedIn, therefore, I don't think this is canary in the coal mine.
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by Scooter57 »

Normchad wrote: Tue Jul 21, 2020 6:42 pm
Yes indeed! And so, it’s healthy for businesses to cull the herd periodically. This should ultimately make them stronger and more profitable. And as index investors, that is good news for us!
As index investors who only have money to invest when they are employed and not "culled" from the herd, it may be far from good news. The pandemic is causing much job loss and will cause more before it is done. The reduction in income and hence buying power in a consumer-driven economy is not good news unless AI figures out a way for robots to buy all those consumer goods that laid off humans can no longer afford.
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by RocketShipTech »

Is there any evidence that the LinkedIn staffers who were laid off served exclusively tech customers?

If not, then what is the evidence that this is a “tech” canary in the coal mine?

It makes more sense that the lay-offs impacted those selling LinkedIn to old-economy customers like travel & hospitality. Tech companies’ usage of LinkedIn may be stronger than ever.
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by Annabel Lee »

RocketShipTech wrote: Tue Jul 21, 2020 8:54 pm Is there any evidence that the LinkedIn staffers who were laid off served exclusively tech customers?

If not, then what is the evidence that this is a “tech” canary in the coal mine?

It makes more sense that the lay-offs impacted those selling LinkedIn to old-economy customers like travel & hospitality. Tech companies’ usage of LinkedIn may be stronger than ever.
I agree with your last point.

In my view... the only evidence of LinkedIn layoffs serving as a sign of challenges in the tech space is that Satya either OKed LinkedIn cutting 1,000 jobs (or asked them to cut) instead of issuing some sort of benevolent cross-Microsoft proclamation that no one would lose their jobs as a result of COVID-19.
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by ladders11 »

It's nothing but a trailing indicator. These teams probably haven't hit goals since Q1. Most employers put some form of hiring freeze on in March. Many layoffs. No significant bounce back yet.

Means nothing for tech generally. Nice to see Microsoft capital healthy enough to keep these teams through Q2. Doubt people were too surprised though.

As a business LinkedIn is one I'd say has good prospects.
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by petulant »

No canary in the coal mine here--just a dead bird on the side of the road.
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by Nate79 »

We are many months into the recession and Covid and I think things are on the upswing from an economic standpoint. I think that's the opposite of a canary in a coal mine.
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by jarjarM »

RocketShipTech wrote: Tue Jul 21, 2020 8:54 pm Is there any evidence that the LinkedIn staffers who were laid off served exclusively tech customers?

If not, then what is the evidence that this is a “tech” canary in the coal mine?

It makes more sense that the lay-offs impacted those selling LinkedIn to old-economy customers like travel & hospitality. Tech companies’ usage of LinkedIn may be stronger than ever.
I agree, the small cut in linkedin are mostly account managers and etc. If the senior dev folks are leaving in droves, then it can be more of a canary, either for Linkedin/MS or tech in general. So far not seeing that. Judging by the listing days of SFH in bay area, I would say tech is fine.
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by wootwoot »

No no canaries here. Why draw such a big conclusion with such limited evidence?
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by SB1234 »

wootwoot wrote: Tue Jul 21, 2020 9:47 pm No no canaries here. Why draw such a big conclusion with such limited evidence?
Because by the time the more evidence emerges its already too late. Still it's just a thought, plus we ought to give the value headers some hope.
Btw today tech lagged the market advance, and then I saw this news. And I said. Hmmm. :?:
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by wootwoot »

Are you going to sell your tech portfolio in anticipation of a crash?
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by AlphaLess »

Tech layoffs have been going on since Mar 2020.

Don't underestimate the power of corporations to squeeze value out of a disaster.
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by SB1234 »

wootwoot wrote: Tue Jul 21, 2020 10:24 pm Are you going to sell your tech portfolio in anticipation of a crash?
Not really, I don't have a tech portfolio. Strictly 3 funds for me.
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by HawkeyePierce »

I work for the perennial "sick man of Silicon Valley", we make all our money from ads, and even we're still hiring. Tech is still doing well.
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by pokebowl »

Normchad wrote: Tue Jul 21, 2020 6:12 pm
I am gobsmacked that LinkedIn has around 15,000 employees. What on earth are they all doing?
They basically verify you receive a recurring email ensuring you get at least one month of LinkedIn premium to see the 20-30 robot accounts that have scraped viewed your profile over the last 90-days with the hope you forget to cancel the service at the end of your trial.
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by TropikThunder »

pokebowl wrote: Tue Jul 21, 2020 11:21 pm
Normchad wrote: Tue Jul 21, 2020 6:12 pm
I am gobsmacked that LinkedIn has around 15,000 employees. What on earth are they all doing?
They basically verify you receive a recurring email ensuring you get at least one month of LinkedIn premium to see the 20-30 robot accounts that have scraped viewed your profile over the last 90-days with the hope you forget to cancel the service at the end of your trial.
That's how I ended up with Amazon Prime. :(
Four years ago ....
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by KyleAAA »

No, I don’t think so. A large part of Satya’s pay is tied directly to top line and operating profit of LinkedIn specifically and those goals are VERY aggressive. Plus, with Jeff Weiner recently stepping down maybe Satya wants to integrate the company into Microsoft, which so far hasn’t really happened to a significant extent. That would imply reducing overlap in the sales force. Microsoft’s and LinkedIn’s sales motions are very different, but there’s good reason to think they shouldn’t be.
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by z91 »

LinkedIn makes money by job postings. Less job openings -> less postings -> less money. I'm surprised it's only 6%. I suspect they are trying to keep as many people onboard as possible as to not show weakness and keep morale up. Just my personal opinion..
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by AlohaJoe »

Normchad wrote: Tue Jul 21, 2020 6:12 pm
SB1234 wrote: Tue Jul 21, 2020 5:56 pm https://www.cnbc.com/2020/07/21/linkedi ... iring.html

Is this the first shoe to drop in terms of tech out-performance? Maybe.
I am gobsmacked that LinkedIn has around 15,000 employees. What on earth are they all doing?
Sales, marketing, account management. Same as any other big company. Nike has 73,000 employees. (All manufacturing is handled by independent factories that Nike contracts with and not counted in that number.) Do you think they are all scientists working on new versions of shoes?
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by rockstar »

I don't know. Trying to call tops is super tough. I always fail at it when I guess.
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by anoop »

This is no canary. Plenty of layoffs have been announced, both tech and non.
https://twitter.com/NorthmanTrader/stat ... 7679182848
Click "show this thread".
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by srt7 »

RocketShipTech wrote: Tue Jul 21, 2020 8:54 pm Is there any evidence that the LinkedIn staffers who were laid off served exclusively tech customers?

If not, then what is the evidence that this is a “tech” canary in the coal mine?

It makes more sense that the lay-offs impacted those selling LinkedIn to old-economy customers like travel & hospitality. Tech companies’ usage of LinkedIn may be stronger than ever.
Nailed it!

It's amazing how much misunderstanding there still exists about the "tech" industry even in 2020. It's such a broadly used term that it now only serves to eliminate what may not be considered tech but that's about it.
I can't think of anything more luxurious than owning my time. - remomnyc
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by palanzo »

TechGuy365 wrote: Tue Jul 21, 2020 8:30 pm
SB1234 wrote: Tue Jul 21, 2020 5:56 pm https://www.cnbc.com/2020/07/21/linkedi ... iring.html
Is this (LinkedIn layoff) the proverbial canary in the coal mine? Lots of high paying jobs being advertised and being recruited on LinkedIn. In the economy if less new high paying jobs, then also less capital being deployed. As we know lots of new capital has been going to tech startups and cloud migration. Is this a signal that at least for the moment, there will be a change from this trend.

Is this the first shoe to drop in terms of tech out-performance? Maybe.
No. I think this is just a natural cycle of business. Looking from an outsider's perspective, the news report says this impacted LinkedIn's "global sales and talent acquisition teams". This makes sense because during Covid-19 job recruiting is impacted. Companies are not hiring, why would you need a bunch of recruiters. It is beneficial for technology companies to refresh their workforce with current needs; most of the time the impacted employees are encouraged to apply for new positions, and sometimes the new positions are of higher level/higher pay.

Additionally, Microsoft (who owns LinkedIn) recently announced an initiative to "help 25 million people worldwide acquire new digital skills needed for the COVID-19 economy" (source: https://news.microsoft.com/2020/06/30/m ... 9-economy/) and LinkedIn is an important piece of the re-skilling initiative. Quote from the article:

"This is a comprehensive technology initiative that will build on data and digital technology. It starts with data on jobs and skills from the LinkedIn Economic Graph. It provides free access to content in LinkedIn Learning, Microsoft Learn and the GitHub Learning Lab, and couples those with Microsoft Certifications and LinkedIn job seeking tools. These resources can all be accessed at a central location, https://opportunity.linkedin.com, and will be broadly available online in four languages: English, French, German and Spanish."

Sounds like Microsoft has big plans for LinkedIn, therefore, I don't think this is canary in the coal mine.
That Microsoft news article is very short on what digital skills are needed and where all these new jobs would come from.
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by palanzo »

Scooter57 wrote: Tue Jul 21, 2020 8:51 pm
Normchad wrote: Tue Jul 21, 2020 6:42 pm
Yes indeed! And so, it’s healthy for businesses to cull the herd periodically. This should ultimately make them stronger and more profitable. And as index investors, that is good news for us!
As index investors who only have money to invest when they are employed and not "culled" from the herd, it may be far from good news. The pandemic is causing much job loss and will cause more before it is done. The reduction in income and hence buying power in a consumer-driven economy is not good news unless AI figures out a way for robots to buy all those consumer goods that laid off humans can no longer afford.
So very true and something that is barely talked about.
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by DonIce »

Tech isn't going anywhere. Technological innovation and progress is the fundamental underpinning of the modern world.
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by palanzo »

srt7 wrote: Wed Jul 22, 2020 12:35 am
RocketShipTech wrote: Tue Jul 21, 2020 8:54 pm Is there any evidence that the LinkedIn staffers who were laid off served exclusively tech customers?

If not, then what is the evidence that this is a “tech” canary in the coal mine?

It makes more sense that the lay-offs impacted those selling LinkedIn to old-economy customers like travel & hospitality. Tech companies’ usage of LinkedIn may be stronger than ever.
Nailed it!

It's amazing how much misunderstanding there still exists about the "tech" industry even in 2020. It's such a broadly used term that it now only serves to eliminate what may not be considered tech but that's about it.
Not sure he nailed anything. "Tech companies’ usage of LinkedIn may be stronger than ever." May be...do we have data to support that their usage is stronger than ever? My experience is that tech companies do not need to use LinkedIn as potential employees come directly to them.
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by RocketShipTech »

palanzo wrote: Wed Jul 22, 2020 12:54 am
srt7 wrote: Wed Jul 22, 2020 12:35 am
RocketShipTech wrote: Tue Jul 21, 2020 8:54 pm Is there any evidence that the LinkedIn staffers who were laid off served exclusively tech customers?

If not, then what is the evidence that this is a “tech” canary in the coal mine?

It makes more sense that the lay-offs impacted those selling LinkedIn to old-economy customers like travel & hospitality. Tech companies’ usage of LinkedIn may be stronger than ever.
Nailed it!

It's amazing how much misunderstanding there still exists about the "tech" industry even in 2020. It's such a broadly used term that it now only serves to eliminate what may not be considered tech but that's about it.
Not sure he nailed anything. "Tech companies’ usage of LinkedIn may be stronger than ever." May be...do we have data to support that their usage is stronger than ever? My experience is that tech companies do not need to use LinkedIn as potential employees come directly to them.
You must not be a tech hiring manager.

If you were, you’d know the difference in quality between candidates coming through the inbound funnel vs. targeted recruiter outreach using tools like LinkedIn.
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by palanzo »

RocketShipTech wrote: Wed Jul 22, 2020 1:30 am
palanzo wrote: Wed Jul 22, 2020 12:54 am
srt7 wrote: Wed Jul 22, 2020 12:35 am
RocketShipTech wrote: Tue Jul 21, 2020 8:54 pm Is there any evidence that the LinkedIn staffers who were laid off served exclusively tech customers?

If not, then what is the evidence that this is a “tech” canary in the coal mine?

It makes more sense that the lay-offs impacted those selling LinkedIn to old-economy customers like travel & hospitality. Tech companies’ usage of LinkedIn may be stronger than ever.
Nailed it!

It's amazing how much misunderstanding there still exists about the "tech" industry even in 2020. It's such a broadly used term that it now only serves to eliminate what may not be considered tech but that's about it.
Not sure he nailed anything. "Tech companies’ usage of LinkedIn may be stronger than ever." May be...do we have data to support that their usage is stronger than ever? My experience is that tech companies do not need to use LinkedIn as potential employees come directly to them.
You must not be a tech hiring manager.

If you were, you’d know the difference in quality between candidates coming through the inbound funnel vs. targeted recruiter outreach using tools like LinkedIn.
Your assumption is incorrect. It may of course depend on the tech company. Also university recruiting does not need to use tools like LinkedIn.
CycloRista
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by CycloRista »

z91 wrote: Tue Jul 21, 2020 11:58 pm LinkedIn makes money by job postings. Less job openings -> less postings -> less money. I'm surprised it's only 6%. I suspect they are trying to keep as many people onboard as possible as to not show weakness and keep morale up. Just my personal opinion..
Microsoft Acquired LinkedIn for $26.2 Billion back in 2016 and has no qualm about dismembering any acquisition that does not pan out. I do not see that being the case here- the platform is more widely diversified and includes training and other services nowadays. LinkedIn makes money through hefty "premium" end-user subscription fees, advertising and hawking data to other data targeting industry behemoths (Adobe Analytics/Google/FB/...) in addition to "tolls" at various phases along the job posting/recruiting/hiring process.

6% layoffs in an organization of that size is not "a canary in the coal mine" in my opinion. The move appears to be more of a tune-up before they announce earnings. Demand remains high for qualified tech industry candidates and that will most likely continue to be the case. (I've landed two jobs from there- one was direct targeting from an internal recruiter and the other was 3rd party).

If the past is any sort of predictor- what occurred in '98-99 and ''07-08 were middle and upper management reorgs and shifts from Director-level jobs to Manager-level "do more with less". Since January of this year the sorts of things I'm seeing (as a job applicant) are reductions in 401k matching contributions, bonus potential and other expense cutting across the board.
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ClevrChico
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by ClevrChico »

SB1234 wrote: Tue Jul 21, 2020 5:56 pm Is this the first shoe to drop in terms of tech out-performance? Maybe.
It could be, they are certainly a large tech company. Apparently LinkedIn does far more than job search services, which I wasn't aware of.

I don't think tech is in tip top health right now for either companies or workers.
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by KyleAAA »

z91 wrote: Tue Jul 21, 2020 11:58 pm LinkedIn makes money by job postings. Less job openings -> less postings -> less money. I'm surprised it's only 6%. I suspect they are trying to keep as many people onboard as possible as to not show weakness and keep morale up. Just my personal opinion..
Not really job postings. They sell talent solutions. A linkedin recruiter license isn't cheap. Sure, it brings job slots, but job postings in general on linkedin are free.
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by bloom2708 »

I think this is business as usual. Re-aligning, re-distributing, re-balancing, re-shuffling. It happens one or more times per year.
"We are here to provoke thoughtfulness, not agree with you." Unknown Boglehead
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by KyleAAA »

palanzo wrote: Wed Jul 22, 2020 12:54 am
srt7 wrote: Wed Jul 22, 2020 12:35 am
RocketShipTech wrote: Tue Jul 21, 2020 8:54 pm Is there any evidence that the LinkedIn staffers who were laid off served exclusively tech customers?

If not, then what is the evidence that this is a “tech” canary in the coal mine?

It makes more sense that the lay-offs impacted those selling LinkedIn to old-economy customers like travel & hospitality. Tech companies’ usage of LinkedIn may be stronger than ever.
Nailed it!

It's amazing how much misunderstanding there still exists about the "tech" industry even in 2020. It's such a broadly used term that it now only serves to eliminate what may not be considered tech but that's about it.
Not sure he nailed anything. "Tech companies’ usage of LinkedIn may be stronger than ever." May be...do we have data to support that their usage is stronger than ever? My experience is that tech companies do not need to use LinkedIn as potential employees come directly to them.
Huh? Substantially all tech recruiting is done via linkedin. I've never gotten a job or hired an engineer where linkedin wasn't part of the process, even if it was just to connect with somebody in my network that was interested. This is equally true for university hires. Linkedin has always been part of the processes. I'm not sure what "potential employees come directly to them" means. Job boards have been dying out in droves, so the value prop for most isn't there. Linkedin and Indeed have come close to cornering that market in the US.
Last edited by KyleAAA on Wed Jul 22, 2020 11:35 am, edited 1 time in total.
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by KyleAAA »

CycloRista wrote: Wed Jul 22, 2020 6:00 am
z91 wrote: Tue Jul 21, 2020 11:58 pm LinkedIn makes money by job postings. Less job openings -> less postings -> less money. I'm surprised it's only 6%. I suspect they are trying to keep as many people onboard as possible as to not show weakness and keep morale up. Just my personal opinion..
Microsoft Acquired LinkedIn for $26.2 Billion back in 2016 and has no qualm about dismembering any acquisition that does not pan out. I do not see that being the case here- the platform is more widely diversified and includes training and other services nowadays. LinkedIn makes money through hefty "premium" end-user subscription fees, advertising and hawking data to other data targeting industry behemoths (Adobe Analytics/Google/FB/...) in addition to "tolls" at various phases along the job posting/recruiting/hiring process.

6% layoffs in an organization of that size is not "a canary in the coal mine" in my opinion. The move appears to be more of a tune-up before they announce earnings. Demand remains high for qualified tech industry candidates and that will most likely continue to be the case. (I've landed two jobs from there- one was direct targeting from an internal recruiter and the other was 3rd party).

If the past is any sort of predictor- what occurred in '98-99 and ''07-08 were middle and upper management reorgs and shifts from Director-level jobs to Manager-level "do more with less". Since January of this year the sorts of things I'm seeing (as a job applicant) are reductions in 401k matching contributions, bonus potential and other expense cutting across the board.
Linkedin's revenue has tripled since the acquisition in 2016. I think the board is probably pretty happy about tripling revenue in 4 years.
tibbitts
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by tibbitts »

KyleAAA wrote: Wed Jul 22, 2020 11:30 am
palanzo wrote: Wed Jul 22, 2020 12:54 am
srt7 wrote: Wed Jul 22, 2020 12:35 am
RocketShipTech wrote: Tue Jul 21, 2020 8:54 pm Is there any evidence that the LinkedIn staffers who were laid off served exclusively tech customers?

If not, then what is the evidence that this is a “tech” canary in the coal mine?

It makes more sense that the lay-offs impacted those selling LinkedIn to old-economy customers like travel & hospitality. Tech companies’ usage of LinkedIn may be stronger than ever.
Nailed it!

It's amazing how much misunderstanding there still exists about the "tech" industry even in 2020. It's such a broadly used term that it now only serves to eliminate what may not be considered tech but that's about it.
Not sure he nailed anything. "Tech companies’ usage of LinkedIn may be stronger than ever." May be...do we have data to support that their usage is stronger than ever? My experience is that tech companies do not need to use LinkedIn as potential employees come directly to them.
Huh? Substantially all tech recruiting is done via linkedin. I've never gotten a job or hired an engineer where linkedin wasn't part of the process, even if it was just to connect with somebody in my network that was interested. This is equally true for university hires. Linkedin has always been part of the processes. I'm not sure what "potential employees come directly to them" means. Job boards have been dying out in droves, so the value prop for most isn't there. Linkedin and Indeed have come close to cornering that market in the US.
Well, "always" would be a stretch, but it's become an important part of the process recently. However many organizations still start the process by applicants filling out and submitting organization-specific paperwork before anybody will look at a Linkedin profile.
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by LittleMaggieMae »

6% of 15000 is 900.

With 15000 employees - I would assume linkedin has lots of office space - probably in multiple cities - possibly in "prestigious address" office buildings. I would think maybe those offices have "in house support" from tech and the mail room, to food service and maybe even "building engineers" and "housekeeping" - that are perhaps on linkedin's payroll. And then there are quite possibly a lot of "consultants" on the payroll who were working projects - that may have been put on hold.

As WFH continues - I can totally see where many of the "office worker support" types of employees might have their jobs ending - since there aren't any "office workers" needing support. I think Big Employers might be more likely to have these kinds of jobs on their payroll - rather than outsourced and paid as a "monthly invoice expense".

As WFH continues - i can totally see where many Big Employers might be adjusting their mid term and long term project plans and may "moth ball" some of them.
palanzo
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by palanzo »

KyleAAA wrote: Wed Jul 22, 2020 11:30 am
palanzo wrote: Wed Jul 22, 2020 12:54 am
srt7 wrote: Wed Jul 22, 2020 12:35 am
RocketShipTech wrote: Tue Jul 21, 2020 8:54 pm Is there any evidence that the LinkedIn staffers who were laid off served exclusively tech customers?

If not, then what is the evidence that this is a “tech” canary in the coal mine?

It makes more sense that the lay-offs impacted those selling LinkedIn to old-economy customers like travel & hospitality. Tech companies’ usage of LinkedIn may be stronger than ever.
Nailed it!

It's amazing how much misunderstanding there still exists about the "tech" industry even in 2020. It's such a broadly used term that it now only serves to eliminate what may not be considered tech but that's about it.
Not sure he nailed anything. "Tech companies’ usage of LinkedIn may be stronger than ever." May be...do we have data to support that their usage is stronger than ever? My experience is that tech companies do not need to use LinkedIn as potential employees come directly to them.
Huh? Substantially all tech recruiting is done via linkedin. I've never gotten a job or hired an engineer where linkedin wasn't part of the process, even if it was just to connect with somebody in my network that was interested. This is equally true for university hires. Linkedin has always been part of the processes. I'm not sure what "potential employees come directly to them" means. Job boards have been dying out in droves, so the value prop for most isn't there. Linkedin and Indeed have come close to cornering that market in the US.
"potential employees come directly to them" means that potential employees submit resumes directly to the tech company's website. Happens all the time. No LinkedIn involved.
KyleAAA
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by KyleAAA »

tibbitts wrote: Wed Jul 22, 2020 12:05 pm
KyleAAA wrote: Wed Jul 22, 2020 11:30 am
palanzo wrote: Wed Jul 22, 2020 12:54 am
srt7 wrote: Wed Jul 22, 2020 12:35 am
RocketShipTech wrote: Tue Jul 21, 2020 8:54 pm Is there any evidence that the LinkedIn staffers who were laid off served exclusively tech customers?

If not, then what is the evidence that this is a “tech” canary in the coal mine?

It makes more sense that the lay-offs impacted those selling LinkedIn to old-economy customers like travel & hospitality. Tech companies’ usage of LinkedIn may be stronger than ever.
Nailed it!

It's amazing how much misunderstanding there still exists about the "tech" industry even in 2020. It's such a broadly used term that it now only serves to eliminate what may not be considered tech but that's about it.
Not sure he nailed anything. "Tech companies’ usage of LinkedIn may be stronger than ever." May be...do we have data to support that their usage is stronger than ever? My experience is that tech companies do not need to use LinkedIn as potential employees come directly to them.
Huh? Substantially all tech recruiting is done via linkedin. I've never gotten a job or hired an engineer where linkedin wasn't part of the process, even if it was just to connect with somebody in my network that was interested. This is equally true for university hires. Linkedin has always been part of the processes. I'm not sure what "potential employees come directly to them" means. Job boards have been dying out in droves, so the value prop for most isn't there. Linkedin and Indeed have come close to cornering that market in the US.
Well, "always" would be a stretch, but it's become an important part of the process recently. However many organizations still start the process by applicants filling out and submitting organization-specific paperwork before anybody will look at a Linkedin profile.
I've never seen or heard of that workflow at a tech company. The initial contact is usually made on linkedin, so how would they fill out org-specific paperwork first? Even if they just applied for a job directly (not a common source of hires), it was likely sourced on linkedin or indeed. Increasingly Google, but still only a minority.
Last edited by KyleAAA on Wed Jul 22, 2020 2:05 pm, edited 1 time in total.
KyleAAA
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Re: beginning of end of tech outperformance - linkedin to layoff 6%

Post by KyleAAA »

palanzo wrote: Wed Jul 22, 2020 1:37 pm
KyleAAA wrote: Wed Jul 22, 2020 11:30 am
palanzo wrote: Wed Jul 22, 2020 12:54 am
srt7 wrote: Wed Jul 22, 2020 12:35 am
RocketShipTech wrote: Tue Jul 21, 2020 8:54 pm Is there any evidence that the LinkedIn staffers who were laid off served exclusively tech customers?

If not, then what is the evidence that this is a “tech” canary in the coal mine?

It makes more sense that the lay-offs impacted those selling LinkedIn to old-economy customers like travel & hospitality. Tech companies’ usage of LinkedIn may be stronger than ever.
Nailed it!

It's amazing how much misunderstanding there still exists about the "tech" industry even in 2020. It's such a broadly used term that it now only serves to eliminate what may not be considered tech but that's about it.
Not sure he nailed anything. "Tech companies’ usage of LinkedIn may be stronger than ever." May be...do we have data to support that their usage is stronger than ever? My experience is that tech companies do not need to use LinkedIn as potential employees come directly to them.
Huh? Substantially all tech recruiting is done via linkedin. I've never gotten a job or hired an engineer where linkedin wasn't part of the process, even if it was just to connect with somebody in my network that was interested. This is equally true for university hires. Linkedin has always been part of the processes. I'm not sure what "potential employees come directly to them" means. Job boards have been dying out in droves, so the value prop for most isn't there. Linkedin and Indeed have come close to cornering that market in the US.
"potential employees come directly to them" means that potential employees submit resumes directly to the tech company's website. Happens all the time. No LinkedIn involved.
This isn't a common source of hires. I'd go one step further and say it's a very uncommon source except for companies with broad name recognition like Microsoft or Google (still a relatively small percentage of hires). Ask me how I know.
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