Right now, US Tech is about $1.3 trillion, out of a total GDP of $23 trillion.
It's pretty consistently about 10% of GDP. Enough to have a noticeable effect: a 1% decline in GDP is an enormous deal, so if one imagined a 10% layoff through the tech industry it would be a real crisis. It's not that bad, of course.
It would be more worrying if it were an indicator of broader employment issues. Instead it seems to be specific to the Silicon Valley business cycle: a lot of growth with more hiring than really necessary, followed by an outsized contraction.
but if 50% of twitter employees are cut, regardless of role, where will they go? you have skilled employees (3500) actual people suddenly looking for work and likely in a small area of circumference...
Maybe nowhere. But since total US unemployment is 6 million, it's not a big deal in the context of "national recession".
I get the impression that it's unlikely that Twitter employees will remain unemployed long in Silicon Valley, unless they want to take an extended break. Lots of places are looking to hire. It may be a step down, but right now unemployment just isn't a national issue. (Six million total unemployed sounds like a lot, but economists expect about 4% of the ~200 million American workers to be unemployed at any moment due to the inevitable friction of people not finding jobs instantly.)
Sure, but I am wondering how many of those employees are actually in the bay area...
FB is flailing, Goog is a nightmare to get hired at, as is Apple (because of their corp egos)... (ive been here and in industry for 26 years, I know these companies DNA well... they are age-ist egomaniacs... so if you dump 3500 twitter workers on the streets os san francisco... thats going to be a tough market. and with the likelihood that many are renters, in one of the most expensive cities in the US, outcomes will be grief.
Musk better give a good severance for the careers he's abt to kill - because he can afford to do so.
It's pretty consistently about 10% of GDP. Enough to have a noticeable effect: a 1% decline in GDP is an enormous deal, so if one imagined a 10% layoff through the tech industry it would be a real crisis. It's not that bad, of course.
It would be more worrying if it were an indicator of broader employment issues. Instead it seems to be specific to the Silicon Valley business cycle: a lot of growth with more hiring than really necessary, followed by an outsized contraction.