All of these tech companies are releasing legions of capable, experienced people into the market who will end up becoming their competitors. The layoffs are so large that entire networks of interconnected professionals are being released in one go. Many potential new start ups.
In a few years, many of these companies may wish that they had had cut back on other stuff (including the shareholder expectations) rather than releasing all of these people to become their competitors.
And a lot of those people have war chests from years of high TC, and can afford to self-fund "garage" startups for awhile.
OTOH, it might be that these big companies select for people who'll jump through the hoops for interview rituals and KPIs/OKRs/promotions while leaning on company inertia, and so be unfamiliar with startup-like thinking and skillsets. (I mean the kind of startup that has to ship and sell and operate viable product, until the VC party resumes -- not the kind of startup that can just play along with a VC investment scheme by manufacturing signals of "growth"/potential.)
The problem is, in this environment, where, with these new startups get their funding? At the same time it is certainly said that in bad times, the best new companies will flourish. Survival of the fittest.
> The problem is, in this environment, where, with these new startups get their funding?
As the other commenter in this thread said - there would be many among them who have enough runway to try something for a few years. Couple this by the many already well-off employees who resigned since the great resignation started, you have a lot of potential small startups.
Moreover, remote work is well established now. People don't have to cram into expensive urban locations like SF and have to shoulder outrageous real estate and living costs. Also the cloud provides easy way to build scalable apps now, they are also well covered in respect to startup infra.
What's left is ideas, reaching to the right audience and iterating. With many tens of thousands of people being laid off, there will eventually be startups that hit big on various things and take market share from their earlier employers.
All of these tech companies are releasing legions of capable, experienced people into the market who will end up becoming their competitors. The layoffs are so large that entire networks of interconnected professionals are being released in one go. Many potential new start ups.
In a few years, many of these companies may wish that they had had cut back on other stuff (including the shareholder expectations) rather than releasing all of these people to become their competitors.