Will tech salaries be readjusted with all these layoffs?

These skills will always be in demand, but curious to hear what happened from dot com bubble folks as well.

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Dot com bubble veteran here

Run up to the burst, unemployment was negative 17% - basically 1 in 6 open roles NEVER got filled. HTML, Java, web design, e-commerce all were white-hot.

People were jumping ship for 30-40-50% increase in base comp PLUS a large potential bonuses PLUS the promise of $millions in IPO/post-IPO stock. In some cases, people would change jobs twice in a year and still be in the same building/zip code. 22 year olds were asking about when their next payrise/bonus/promotion was gonna happen on an annoyingly frequent basis.

Everyone talked about the benefits their new company provided - snacks, barista, foosball tables, bring you dog to work - companies has to fight hard to attract and retain staff. Nobody worked from home really - slow internet & no wifi - so their was no WFH or hybrid discussion. The main gripe was business casual versus suits and ties.

9/11 happened then the bubble burst hard

Companies went bust, others had massive layoffs, massive cost cutting - all the fluffy benefits went away. Hiring stopped for the most part, went from -17% unemployment to 20% within months. No raises or bonuses for many - assuming you didn’t get a pay cut.

If you were whacked, might be 3/6/12 months to find a new gig and often at a much lower comp. Takes 3-5 years to get back to pre bust comp.

Source : me and many of my friends/colleagues and others

*stares into the middle distance and mutters in PTSD

likesmart

Exactly what I was looking for too ! I’m a 2008 survivor but was in college during dot com burst (and in a galaxy far far away)

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They’ll probably become more realistic.

IE a project manager who works 4-10 hours a week shouldn’t be making $400,000 a year

likefunny

The infamous TikTok video of the (former) Twitter PM who did just that.

This comment is also extremely sarcastic

Doubt it, it’ll likely move to a model more common at value companies

- 2-3% inflation raises
- 5-10 years between promos
- Promos depend on people retiring
- Early career IC roles are terminal
- Unwilling to pay up to win cross offers

likesmart

Starting salaries will stay stagnant (for the next few years) and YoY increases won't be as much. Same thing happened in banking after 2008.

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Layoffs and salary increases are not hand in hand in my view. I think they will maintain 2-3% and possibly have more lead way/opportunities for some to squeeze in higher positions that may have been (e.g. 100K), for less. Least that’s how some of these start ups have been doing.

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The salaries will stagnate so raises will be be minimal and hopping to another company won’t gain a person the former huge increases. In the cases of those that offered stocks, those will be less or removed as offerings. Of course, the perks will disappear and become more in line with typical offerings.

As far as skills always being in demand, things change. Software changes, technology changes, processes change, customer/business needs change. Never assume that certain skills will always be in demand. Whole enterprises can disappear when a new innovation comes along.

- remembers the dot com bubble burst

likesmart

I think you’ll continue to see top companies pay for top talent. I think you’ll see much more realistic comp at companies outside the top for non-core functions.

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