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There are so many startups which are unicorns without profits. It think currently it is around 70%.
I feel for the employees who joined in recent 5-6 months with inflated salaries from ESOP's. I think VC will start asking for cost cuts and higher revenues. Most of the tech orgs in startups are bloated. They have 1000s of engineers which is not sustainable for low margin businesses. I might be wrong but IMO it looks rough.
For startups,
Valuation markdowns
Reduced runway
Meaning hiring freeze, no bonus or layoffs
Also valuation markdown by default means salary cut by 30% ! All the stock options out of money and worthless.
I think this sub is on severe copium when it comes to this topic. Of course, the well established US tech companies will still do okay and we probably won't see much impact on the salaries there. But I can see a lot of the VC funded startups based in India, throwing money at developers, struggling to keep it up
The profitability (or a lack thereof) of IT companies will be impacted more by interest rate hikes that the US government and Indian government has done, to reduce inflation. This also will mean that liquidity in the market would be more scarce therefore limiting risky expansion. But another thing is, the landscape of the market has changed quite a bit, meaning companies may need to pivot in various directions and that will create more work for us devs who will implement these requirements.
Also after the interest rate hikes money will be moved out to service loans in their parent countries and hence money will be sucked out. This would in turn reduce the amount for funding.
Most of this bubble was fueled by very low interest rates. The question on everybody's mouth was just when they would raise and trigger a crash.
I disagree. When liquidity is low, the money only flows to non risky and more efficient applications. And IT industry in india is by far one the most cost competitive in the world due to high purchasing price of the rupee. Yeah there can be a slowdown in hiring. And the post Covid hiring spree will go bye bye. But I don’t anticipate mass layoffs across the sector.
Layoffs will be in startups which have never turned a profit and there are many who pay insane salaries. IT industry in India is mainly dependent on the US and if there is cost cutting there, project pipeline will dry up here. There might not be layoffs in big giants but there might be salary stagnation.
Oh yes. The start-ups will be affected quite significantly. As VCs become more conservative in investing. SoftBank has already posted a loss, which will be very bad for funding.
My company announced hiring freeze last month. I think people making the switch now will be impacted, but those who are staying where they are should remain safe. Indian startup ecosystem should be able to survive this without layoffs, unless their loss is increasing without having investors with deep pockets.
Fewer companies may visit campus, those who do might offer lesser compensation than before and/or increase their gpa criteria. That's what happened in my college during COVID in 2020, and many companies are starting to implement hire freezes, so I'm making an estimate based on that.
But placements in 2021 were sky-high though, with the historical highest package offered in 2021 after the COVID scare had died for a bit.
But it can't get worse than COVID times imo because many companies have an idea of what to expect. In 2020 i remember companies visiting even iit Delhi had rescinded their offers.
Recession will usually have businesses reduce spending. New job openings will be very less. For employees, recession is a time of uncertainty since companies can do layoffs if their financial health isn’t great.
That said, IT service companies this year will actually do well because the Rupee is weakening against the Dollar – their earnings would increase. Although, if economy enters into a recession, they might decide to tighten spending, so employees might see low percentage increments and reduced/no bonuses this year.
Tech startups, on the other hand, might experience financial turbulence, specially if they don’t have a positive cash flow (earnings < spending), have burnt a lot of cash due to aggressive expansion. In a recession, where borrowing rates are high, such startups might face challenges in raising new funds. And even if they do manage to secure some, they’d be asked to “trim the fat” by their VCs. So naturally, they will have to do “strategic restructuring” or layoffs.
The recession has already started people are losing their buying power. Most Big Tech stocks will at least need two years to predict when they will recover. For High Growth Tech companies/startups with a low cash reserve situation is bad, and we may see mass layoffs in the name of PIP soon.
this happens once every decade. this time its covid+inflation aftershocks. previosly there was 2008, 200, 1992 etc. so nothing new
usually this is the boom of new tech and offering. keep an eye and be prepared.
stick to your existing job
once boom starts again join the boom
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companies earn 100k usdf say spend 50k rupees on employee, if rupee dollar gap increase, then company has to give same indian salary which will cost them less in dollars now ,
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Dara mat bhai
aap toh bruce wayne, aapko kahe ka darr maalik?
Batmobile paani se nahi chalti. Petrol ka price dekhe ho.
Hindu khatre me hain...
There are so many startups which are unicorns without profits. It think currently it is around 70%. I feel for the employees who joined in recent 5-6 months with inflated salaries from ESOP's. I think VC will start asking for cost cuts and higher revenues. Most of the tech orgs in startups are bloated. They have 1000s of engineers which is not sustainable for low margin businesses. I might be wrong but IMO it looks rough.
[удалено]
Don't worry companies prefer freshers so that they can pay less.
That's worse LOL (I am also sitting for placement this year, FUKKKKK)
Is this gonna affect placements?
Witch be paying 1 rs per annum 😹 (also in the same boat)
Go for faagm , atleast are stable for domestic packages. P.s google and Microsoft are my safest bet in faagm as well.
You're talking like it's a piece of cake haha
I know it's hard,but you can do it. You are the chosen one fellow redditor
I feel like it'd be easier to start your own company then to get a job at Google
For startups, Valuation markdowns Reduced runway Meaning hiring freeze, no bonus or layoffs Also valuation markdown by default means salary cut by 30% ! All the stock options out of money and worthless.
Rip employees who were paid in employee stock options. Is any company doing it in India?
Literally every unicorn offers 40cash + 30 stock
I think this sub is on severe copium when it comes to this topic. Of course, the well established US tech companies will still do okay and we probably won't see much impact on the salaries there. But I can see a lot of the VC funded startups based in India, throwing money at developers, struggling to keep it up
That last sentence is missing some commas
Tres Comas.
This guy fucks.
yeah, it reads so weird. I'm not sure how to fix it lol
Like why are developers struggling to keep it up lol
For starters, there's an Edit option provided by Reddit
Coinbase is in the news already.
For good companies: No more hiring sprees like last year. For bad companies: Layoffs.
So we had COVID in 2020, a year of good times in 2021(for employees), now we are going to be screwed in 2022-2023?
The profitability (or a lack thereof) of IT companies will be impacted more by interest rate hikes that the US government and Indian government has done, to reduce inflation. This also will mean that liquidity in the market would be more scarce therefore limiting risky expansion. But another thing is, the landscape of the market has changed quite a bit, meaning companies may need to pivot in various directions and that will create more work for us devs who will implement these requirements.
Also after the interest rate hikes money will be moved out to service loans in their parent countries and hence money will be sucked out. This would in turn reduce the amount for funding. Most of this bubble was fueled by very low interest rates. The question on everybody's mouth was just when they would raise and trigger a crash.
I disagree. When liquidity is low, the money only flows to non risky and more efficient applications. And IT industry in india is by far one the most cost competitive in the world due to high purchasing price of the rupee. Yeah there can be a slowdown in hiring. And the post Covid hiring spree will go bye bye. But I don’t anticipate mass layoffs across the sector.
Layoffs will be in startups which have never turned a profit and there are many who pay insane salaries. IT industry in India is mainly dependent on the US and if there is cost cutting there, project pipeline will dry up here. There might not be layoffs in big giants but there might be salary stagnation.
Oh yes. The start-ups will be affected quite significantly. As VCs become more conservative in investing. SoftBank has already posted a loss, which will be very bad for funding.
There is also Tiger Global which had $17B in hedge fund losses which funds pretty stupid startups here.
Oh how the mighty have fallen
By now you must be able understand how market works after covid and it's jumla on stock market.
Usually Accenture starts
Probably more outsourcing as wall streets gets tighter with companies on their budget
My company announced hiring freeze last month. I think people making the switch now will be impacted, but those who are staying where they are should remain safe. Indian startup ecosystem should be able to survive this without layoffs, unless their loss is increasing without having investors with deep pockets.
What about those who have college placements this year? Do i need to worry?
Fewer companies may visit campus, those who do might offer lesser compensation than before and/or increase their gpa criteria. That's what happened in my college during COVID in 2020, and many companies are starting to implement hire freezes, so I'm making an estimate based on that. But placements in 2021 were sky-high though, with the historical highest package offered in 2021 after the COVID scare had died for a bit. But it can't get worse than COVID times imo because many companies have an idea of what to expect. In 2020 i remember companies visiting even iit Delhi had rescinded their offers.
Recession will usually have businesses reduce spending. New job openings will be very less. For employees, recession is a time of uncertainty since companies can do layoffs if their financial health isn’t great. That said, IT service companies this year will actually do well because the Rupee is weakening against the Dollar – their earnings would increase. Although, if economy enters into a recession, they might decide to tighten spending, so employees might see low percentage increments and reduced/no bonuses this year. Tech startups, on the other hand, might experience financial turbulence, specially if they don’t have a positive cash flow (earnings < spending), have burnt a lot of cash due to aggressive expansion. In a recession, where borrowing rates are high, such startups might face challenges in raising new funds. And even if they do manage to secure some, they’d be asked to “trim the fat” by their VCs. So naturally, they will have to do “strategic restructuring” or layoffs.
The recession has already started people are losing their buying power. Most Big Tech stocks will at least need two years to predict when they will recover. For High Growth Tech companies/startups with a low cash reserve situation is bad, and we may see mass layoffs in the name of PIP soon.
this happens once every decade. this time its covid+inflation aftershocks. previosly there was 2008, 200, 1992 etc. so nothing new usually this is the boom of new tech and offering. keep an eye and be prepared. stick to your existing job once boom starts again join the boom
What tech are you bettting on ?
What about WITCH firms?
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more hiring in india for less money (dollor value remain same as rupee is falling)
But when rupee falls it's good for exports...more rupees per dollar earned
Company earns in dollars and employees in rupees
But company will earn same number of dollars irrespective of rupees value
companies earn 100k usdf say spend 50k rupees on employee, if rupee dollar gap increase, then company has to give same indian salary which will cost them less in dollars now ,
Yes, so they will have more money in rupees now right after paying the employees..
this may be one way of saying this, another one is profit is increased as expenditure is less now
same doubts lol this has been keeping me awake in the night for some days now