This is probably just continued post-COVID demand normalization. Basically all software and gaming got a massive bump that was obviously going to have an unsustainable component to it. But in many cases companies planned like it was totally sustainable and would continue. That’s why even super profitable companies like Microsoft and Epic are doing layoffs in 2023.
The other reason of course is that they went a bit crazy with the hiring sprees and accumulated some unproductive devs who are probably a net drag. That’s ultimately a healthy force in the economy as those people can do more in smaller firms with less in-house expertise (albeit at lower wages).
I wonder also how much of a driver new programmer productivity tools like copilot and ChatGPT are factoring into this. If your top 10% productivity workers just got a 30%+ productivity boost, that means you can easily shed the bottom 20% productive workers and still be ahead of the game.
The other reason of course is that they went a bit crazy with the hiring sprees and accumulated some unproductive devs who are probably a net drag. That’s ultimately a healthy force in the economy as those people can do more in smaller firms with less in-house expertise (albeit at lower wages).
I wonder also how much of a driver new programmer productivity tools like copilot and ChatGPT are factoring into this. If your top 10% productivity workers just got a 30%+ productivity boost, that means you can easily shed the bottom 20% productive workers and still be ahead of the game.