Ask HN: Has the tech recession affected you?

Hacker News Discussion ↗

Many software engineers report a sharp downturn in job prospects, with widespread layoffs, far fewer callbacks, rescinded or canceled roles, and significantly lower compensation offers compared to the boom years of low interest rates. While large tech firms and some niches (.NET, defense, certain government and European roles) still appear relatively stable, competition for “good” roles is intense and junior or mid-level candidates are particularly squeezed. Commenters describe companies running lean, over-interviewing and using layoffs to reset salaries, prompting some engineers to delay moves, take non-tech or lower-paid work, build side businesses, or consider entrepreneurship while emphasizing the need for savings and realistic expectations.

Overall Market Conditions

  • Many commenters report a sharp slowdown in hiring, especially compared to 2020–early 2022.
  • Debate over whether this is a true “tech recession”: big tech revenues often still strong, but demand for engineers feels much weaker.
  • Several posts attribute the shift to the end of ultra‑low interest rates and the overstretched VC/startup bubble.
  • Some note that more people posting in “Who wants to be hired?” threads suggests tech unemployment has roughly doubled.

Layoffs, Job Search, and Competition

  • Numerous reports of layoffs at startups, FAANG, ad tech, games, and PE‑acquired companies; some teams cut by 30–50%.
  • Job search is markedly harder: callbacks dropping from ~50% to low single digits; hundreds of applications yield only a few interviews.
  • Roles are often cancelled mid‑process due to “no budget”; some companies re‑post similar roles later or rehire at lower pay/skill levels.
  • New grads and those with <2 years’ experience, and generalists without a niche, seem especially squeezed.

Compensation and Role Quality

  • Offers commonly come with lower base than past roles; some report 30–70% pay cuts compared to peak years.
  • Raises often lag inflation; some see significantly lower contract rates.
  • Reports of companies expecting one engineer to do work previously done by several, with deteriorating conditions and more burnout.

AI, Sector, and Geographic Differences

  • Mixed views on an “AI boom”: some see modest new hiring and budget for AI projects; others see mostly hype or budget going to compute, not headcount.
  • Certain stacks (e.g., .NET in some US regions) and government/regulated sectors appear more stable, with ongoing hiring.
  • Europe is described as cooler but less volatile; some Europeans still get frequent recruiter outreach.

Hiring Practices and Candidate Experience

  • Many describe interviewing as dehumanizing: excessive rounds, take‑home projects, junior interviewers vetoing seniors, and minimal feedback.
  • Complaints about ghosting, roles with active offers not disclosed, and cover letters feeling like performative flattery.

Coping Strategies and Alternatives

  • Several shift to consulting, small business work, or entrepreneurship, sometimes out of necessity.
  • Some advocate building large savings and avoiding debt to withstand long unemployment.
  • Others stay put in “okay” or deteriorating jobs due to fear of the market, while a minority report stable or improving situations.