Remember the feeling of being a prized software engineer? Free food, on-site perks, lavish benefits, and generous vacation packages were common offerings from big tech companies. But in a relatively short period, the perception of software engineers has shifted from the darlings of the job market to potential targets for automation or cheaper labor. Despite high demand, compensation growth has slowed.
The Rise of Tech and its Allure
Technology companies, unlike the finance industry after the 2008 crisis, became attractive employers, offering high salaries and significant impact. The film The Social Network inspired many to believe that a few lines of code could create a multi-million dollar company. There seemed to be an insatiable demand for engineers.
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Everyone was encouraged to learn to code.
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Educational systems focused on selling coding skills.
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Coding bootcamps proliferated in major cities.
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Student numbers in these bootcamps surged from 18,000 in 2016 to 60,000 in 2023.
Software engineers enjoyed considerable power in the job market. This sense of invincibility led some to believe they were more than just employees, seeing themselves as part of a family. Open environments and health benefits fostered a sense that companies genuinely cared for their well-being, not just their output.
The Illusion of Purpose
Many became deeply invested in the company's mission, viewing themselves as contributors to a world-changing movement, rather than just building software. Camaraderie with colleagues further reinforced this feeling of belonging and purpose. The expectation of working long hours became normalized in pursuit of this perceived "important mission."
The Pandemic and the Hiring Frenzy
Following 2021, technology companies made hiring decisions based on what Google was doing, assuming their actions were justified. This led to a hiring spree, with companies like Meta hiring people for roles with little practical value, driven by a fear of missing out. There was a sense of needing to acquire something, even if it wasn't needed, simply because others were doing it.
The logic behind these decisions often lacked substance. High salaries became commonplace, and individuals frequently received offers to leave their current jobs for significantly higher pay. However, there was a growing awareness that this bubble was unsustainable.
The Tech Reckoning of 2023
2023 marked the worst year for Silicon Valley since the dot-com bust, with over 260,000 jobs lost seemingly overnight. As pandemic restrictions eased and people yearned to return to normalcy, tech companies faced a harsh reality check. The stock price of companies like Peloton plummeted rapidly.
Driven by profit motives, companies and investors shifted their focus from experimental projects to investments with faster, more predictable returns. This meant focusing on maintaining existing systems, even if less exciting, for guaranteed revenue generation.
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Mass layoffs started in 2023 and continue today.
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Each layoff normalized the practice for other companies.
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A herd mentality prevailed, influencing decision-making.
Wall Street rewarded companies that implemented layoffs. For example, Meta's stock price increased by 194% in 2023, making it the best-performing of the Big Five tech companies, despite laying off 21,000 employees.
The New Reality in 2025
By 2025, the atmosphere had drastically changed. The days of perks like free lunches, laundry services, and remote work options were replaced by pressure to perform, threats of return-to-office mandates, and increased accountability.
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Tech giants like Apple, Meta, TikTok, and Google implemented three-day return-to-office policies.
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Amazon required employees to return to the office full-time.
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Netflix and Google even cut back on free company swag.
Meta even cut 5% of its workforce earlier in the year, framing it as a performance-based initiative, which seemed shockingly insensitive given the positive performance reviews some of those laid off had received. Meta not only eliminated jobs but also damaged individuals' ability to find new employment by placing blame on them.
The Impact of AI and Return to Office
Google, feeling competitive pressure from generative AI, also pushed its employees to return to the office. Co-founder Sergey Brin even mentioned the expectation of 60-hour workweeks internally.
AI is also being leveraged by management, sometimes believing they know how to do your job better than you. Shopify's president recently announced that employees must now use AI as part of their jobs, and its use will be factored into their performance evaluations.
While AI tools are powerful, making their use a mandatory part of a job suggests a lack of trust in employees' judgment and discretion in determining when AI is appropriate.
The Value of STEM Skills
The tech industry, also known as STEM (Science, Technology, Engineering, and Mathematics) is still evolving, which is potentially something you might want to pursue. There are numerous benefits to having skills that allows you to find a new job if you are not satisfied with the one you have.
The Shift in Power Dynamics
There used to be power in knowing that if your boss bothered you, you could easily find a new job with better pay. Now, that power dynamic has shifted. However, it's important to remember that screens, deadlines, and office work aren't unique to the software industry. These are common elements in many jobs, plus compensation is higher for jobs in the STEM industries.
For example, learning a new programming language provides you with a direct path to potentially increase your salary. While many lament the rapid pace of change in the tech industry, it's important to recognize the relative advantages that remain.
Sobering Up to a New Reality
Layoffs and stricter deadlines have become the norm for most white-collar jobs. The industry is facing the reality that software engineers are simply headcount on a balance sheet. The delusion of being part of a family or believing in empty mission statements has faded.
Companies might refer to employees as family and promote company values in town hall meetings, but then lay off 20% of the workforce in the same week. Companies and their management act within the constraints of a capitalist system. As employees, this is not the time to be swayed by superficial gestures of friendship or feel forced to be loyal to an entity that prioritizes profits over employee well-being.
Even with perks like free massages, profits will always come before employee health. In this economic climate, individuals must advocate for themselves, define their professional boundaries, and prioritize their own well-being, as no one else will.
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