The tech industry's period of abundant capital and unconstrained growth has ended. Companies are now prioritizing profitability over growth at all costs, leading to widespread layoffs, hiring freezes, and a shift in focus towards efficiency. This change is driven by macroeconomic factors like rising interest rates and inflation, as well as a correction after years of unsustainable valuations and practices. While this signifies a more challenging environment, particularly for startups reliant on venture capital, it also marks a return to fundamentals and a focus on building sustainable businesses with strong unit economics. The author suggests this new era favors experienced operators and companies building essential products, while speculative ventures will struggle.
Contrary to the headline's claim, Joann Fabrics is not going out of business entirely. The craft retailer is restructuring under Chapter 11 bankruptcy and plans to close some unprofitable stores. The company aims to emerge from bankruptcy with a stronger financial footing and a more sustainable store footprint. The restructuring will involve financial stakeholders and includes a commitment for $50 million in new financing.
HN commenters discuss the surprising nature of Joann's closure, given its apparent popularity and the enduring hobby of crafting. Several suggest the "going out of business" phrasing is misleading, pointing to the Chapter 11 bankruptcy filing as a restructuring move rather than a complete shutdown. Some speculate about the reasons for the financial trouble, including poor inventory management, high rent costs, competition from online retailers like Amazon and Etsy, and the cyclical nature of crafting trends. Others lament the potential loss of a valuable resource for crafters and the impact on local communities. A few express skepticism about the long-term viability of brick-and-mortar craft stores in the current retail landscape.
Software engineering job openings have dropped significantly, reaching a five-year low according to data analyzed from LinkedIn, Indeed, and Wellfound (formerly AngelList). While the overall number of openings remains higher than pre-pandemic levels, the decline is steep, particularly for senior roles. This downturn is attributed to several factors, including hiring freezes and layoffs at large tech companies, a decrease in venture capital funding leading to fewer startups, and a potential overestimation of long-term remote work demand. Despite the drop, certain specialized areas like AI/ML and DevOps are still seeing robust hiring. The author suggests that while the market favors employers currently, highly skilled engineers with in-demand specializations are still in a strong position.
HN commenters largely agree with the premise of the article, pointing to a noticeable slowdown in hiring, particularly at larger tech companies. Several share anecdotes of rescinded offers, hiring freezes, and increased difficulty in finding new roles. Some suggest the slowdown is cyclical and predict a rebound, while others believe it's a correction after over-hiring during the pandemic. A few commenters challenge the article's data source or scope, arguing it doesn't fully represent the entire software engineering job market, particularly smaller companies or specific niches. Discussions also touch upon the impact of AI on software engineering jobs and the potential for increased competition. Some comments recommend specializing or focusing on niche skills to stand out in the current market.
Summary of Comments ( 128 )
https://news.ycombinator.com/item?id=43378321
HN users largely agree with the premise that the "good times" of easy VC money and hypergrowth are over in the tech industry. Several commenters point to specific examples of companies rescinding offers, implementing hiring freezes, and laying off employees as evidence. Some discuss the cyclical nature of the tech industry and predict a return to a focus on fundamentals, profitability, and sustainable growth. A few express skepticism, arguing that while some froth may be gone, truly innovative companies will continue to thrive. Several also discuss the impact on employee compensation and expectations, suggesting a shift away from inflated salaries and perks. A common thread is the idea that this correction is a healthy and necessary adjustment after a period of excess.
The Hacker News post titled "The good times in tech are over" (linking to seangoedecke.com/good-times-are-over/) generated a significant number of comments, many of which discussed the cyclical nature of the tech industry, the changing economic landscape, and the implications for both employers and employees.
Several commenters agreed with the premise of the linked article, pointing to the recent wave of layoffs, hiring freezes, and reduced valuations as evidence of a downturn. They discussed how the era of easy money and rapid growth fueled by low interest rates is ending, leading to a correction in the market. Some mentioned that this is a healthy and expected part of the economic cycle, while others expressed concern about the potential for a deeper recession.
A recurring theme was the shift in power dynamics between employers and employees. Some commenters argued that the previously employee-friendly market, characterized by high salaries, generous perks, and abundant job opportunities, is now tilting back in favor of employers. This shift, they suggested, might lead to a more competitive job market, potentially impacting compensation and benefits.
Several commenters shared personal anecdotes about their experiences in the current market, including stories of layoffs, rescinded job offers, and difficulty finding new roles. These anecdotes provided real-world examples of the changing dynamics discussed in other comments.
Some commenters challenged the article's premise, arguing that the "good times" were never universally experienced, especially for those outside of specific tech hubs or roles. They pointed out that many tech workers have always faced precarious employment conditions and that the current downturn might disproportionately impact certain segments of the industry.
The discussion also touched on the potential long-term consequences of the current downturn, including the impact on innovation, startup funding, and the overall tech landscape. Some predicted a period of consolidation, with larger companies acquiring smaller ones and a greater focus on profitability over growth.
Several commenters offered advice for navigating the changing market, including focusing on acquiring in-demand skills, building a strong network, and being prepared for potential job changes. They also emphasized the importance of financial prudence and diversifying income streams.
Finally, some commenters expressed skepticism about the ability to accurately predict the future of the tech industry, highlighting the inherent uncertainty and volatility of the market. They suggested that while the current situation may be challenging, it also presents opportunities for those who are adaptable and resilient.