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Did you know that 2022 is on track for the lowest number of layoffs in a year, ever? Since we started keeping track, anyway. (Source.)
Yet Big Tech’s layoffs meltdown accelerated. 59,710 in November. The most this year. (Source.)
I wrote about this in July and it’s gotten more absurd. I stayed at Holiday Inn Express last night so today I’ll explain economics of it:
First, understand Bull Market Phenomena. Some poor business practices thrive due to good economic times. Confidence. People invest in things that are doing well, just because they’re doing well. Why question what works?
By people, I mean everybody. Regular people buy stocks like Amazon or Meta. VCs fund the next pre-IPO unicorn.
When we think good times will continue forever, we throw money at anything we can find.
Best case, we create markets with ridiculously high valuations.
Worst case, we pump money into awful businesses that don’t make any sense.
Sound familiar?
That’s how Big Tech companies with questionable financials (i.e. the ones that don’t make money), see sustained stock price growth. Based entirely on future projections. Which fuels even more price growth.
That’s also how we’ve come to accept that some tech stocks are worth 100x earnings. It’s been like this for over a decade.
Suddenly: inflation!
Demand for products kept going up. But Covid jacked up the supply. Prices rise.
Inflation is bad. That’s where the Fed comes in. Their mandate is price stability. So they raise interest rates.
Higher rates do 2 things:
1. Cost of capital goes up. Debt is more expensive. Higher operating costs. Lower profitability. Which drives layoffs.
Exactly what fed is counting on. Layoffs (theoretically) lower consumer demand and curb inflation.
2. The ‘risk free’ rate of money goes up. Investors require even higher returns on new investments.
So they don’t make those investments…until prices drop.
e.g. Meta laid off 11,000 people in November and their stock is down 65% for the year.
Add shrinking ad budgets (social media revenue) and a crypto implosion, you have quite the Big Tech meltdown.
But we added 263,000 jobs in November! Why isn’t everything crumbling?
Two things:
????Tech jobs are tiny part of the job economy. Under 3% of the jobs in the US.
Crazy right? Hard for those of us in the LinkedIn bubble to comprehend. It’s a small, attention-consuming pond.
????The tech sector & tech jobs are not the same thing.
Big Tech may not need as many software engineers or sales peeps. Who does? Everyone else.
There were still 0.6 unemployed people for every open job in October (Source). Near all time lows.
One good thing about recessions: they purge bad business practices and poorly run companies.
Some tech orgs grew larger than they ever should have. I feel horrible for anyone who lost their job.
The good news is: there’s plenty of other companies willing and able to bring them on.
Ones on better footing.
Partner at Hirewell. #3 Ranked Sarcastic Commenter on LinkedIn.
Over the last year, hiring teams have started seeing a wave of new job titles pop up across tech, sales, and operations.
Some are legitimate new roles.
Others are existing jobs with a slightly different name.
And many of them have one thing in common: AI is suddenly part of the job description.
From Go-to-Market Engineers to AI Specialists, companies are experimenting with new roles as they figure out how automation and AI fit into their teams.
But most of these positions aren’t entirely new. They’re evolutions of existing roles.
One role that’s gaining traction is the Go-to-Market Engineer.
Depending on who you ask, it’s either:
In practice, it’s a bit of both.
We recently worked on a role called an Outbound & Go-to-Market Specialist. Instead of traditional RevOps work like reporting and CRM management, the focus was on:
The goal wasn’t just managing sales data. It was accelerating pipeline generation through automation.
In other words, the role was designed to help SDRs and AEs move faster.
One trend is becoming clear: companies aren’t replacing entire departments with AI.
Instead, they’re changing how existing roles operate.
Sales teams still need pipeline.
Marketing teams still need content.
Engineering teams still need to build software.
The difference is that employers now expect candidates to use AI tools as part of the workflow.
That’s why we’re seeing so many job titles that start with “AI.” But that may not last forever.
Right now, AI still feels new enough that companies highlight it in job titles.
But eventually, AI will likely become a baseline expectation, not a specialty.
Think about it like cloud technology or data analytics.
At first, companies hired “cloud specialists.” Now most engineers are expected to understand cloud infrastructure.
The same shift will likely happen with AI.
Instead of hiring “AI-enabled marketers” or “AI engineers,” companies will simply expect employees to know how to work with AI tools.
One challenge with these emerging roles is simple: there aren’t many candidates with real experience yet.
Many of these positions didn’t exist two years ago.
In one recent search, we started looking for a candidate locally in Chicago. Eventually we expanded nationwide because the pool of people with relevant experience was extremely limited.
This is a common issue with emerging roles:
That gap will likely persist for the next few years.
Another noticeable shift is that roles are becoming more hybrid.
Instead of hiring for narrow responsibilities, companies are combining multiple functions into one position.
For example:
Forward Deployed Engineers
A model popularized by Palantir, these engineers:
That used to involve several roles: product managers, engineers, and solution architects.
Now, AI tools allow one person to cover more ground.
Similar changes are happening in other functions as well:
Automation removes repetitive tasks, leaving more strategic work behind.
For employers, the takeaway is straightforward.
Job descriptions need to evolve alongside technology.
Instead of focusing only on traditional experience, hiring managers should consider:
Because in many cases, the perfect candidate with the exact title simply doesn’t exist yet.
We’re currently in a transitional phase in hiring.
AI is changing how work gets done, which means job titles, responsibilities, and expectations are shifting quickly.
But most of these “new” roles aren’t entirely new professions.
They’re existing jobs adapting to new technology.
And as companies continue experimenting with AI, the titles may keep changing.
The work itself, however, is likely to look familiar.