🎉 Adios tech layoffs? 👀

Read time: 2.5 minutes

Good Morning Party People! 🎉

Just like Twitter, we’re also doing a little rebranding. We’re now “The X Party”. What does it mean? We don’t know.

Reminder - Invite your friends to The Party and enter to win a $50 Amazon gift card.

Here’s what we got today:

💻 Are tech layoffs done?

🧑‍💼 Labor market update

🤖 Lost a job to ChatGPT

🍔 In N Out cracking down on masks?!

And, of course, MEMES!

MOTD (Meme of The Day)

“The salary range for this position is $70,000 - $513,000”

Think you have great meme skills? Reply to this email with your best meme to be featured in the MOTD.

Adios Tech Layoffs?

Layoffs, layoffs, layoffs. It’s all we’ve seen this year. 885 tech companies have now laid off more than 220,000 workers in 2023 alone.

But we have good news. Layoffs are continuing to trend downward, and private companies (think startups) are now seeing an average of 25 rounds of layoffs per month. This may seem like a lot, but this is down from an average of 50 per month earlier in the year.

“The number of startups making job cuts has dropped, too. While on average, 50 private companies cut tech jobs in the U.S. each month in the first three months of the year, since April we’ve seen that half to an average of 25 rounds per month”

Crunchbase is cautious to make any assumptions that layoffs are over. Many startups are still struggling with funding and could be looking to continue to cut costs.

But according to layoffs.fyi, there is a clear downward trend. The peak of layoffs appears to be in the rearview mirror.

Read more at Crunchbase.

Labor Market Update

The number of job postings has fallen more than 17% YoY. Software Development has taken the biggest hit, down 60% YoY. Yes, 6-0 percent. Seems like a lot, but tech has seen over 220,000 layoffs in 2023.

In addition to a decrease in job postings, the B2B sector has also seen stalling wage growth.

“Indeed wage growth data, focused on employer-provided wages and salaries listed in the job posting, shows a mixed bag for pay growth in the B2B segment. Management and Education & Instruction wage growth remains elevated, above the labor market average of 5.3%. Meanwhile, Software Development wage growth has stalled, coming in at 1.7% in May 2023 — not all too surprising given how demand for these workers has plummeted in the past year.”

However, in general (outside of the B2B sector), wages have been trending upwards. “Average hourly pay increased by an annual rate of 4.4% over the past 3 months”.

For more on the labor market, head over to the Indeed Hiring Lab.

Party Snacks (Weekly Resources)

FREE Salesforce AI Course - 40% of workers feel that they don’t know how to use generative AI effectively. Check out this free course by Salesforce to learn the basics.

Layoffs.FYI - 221,655 tech employees have been laid off in 2023. This resource keeps you up-to-date with tech layoffs.

Blind - Blind is a place where 8M+ professionals worldwide share advice, provide honest perspectives, discuss company culture and discover relevant career information. Professionals anonymously communicate in private company channels and openly with users across industries.

ChatGPT AKA The Job Thief

Emily Hanley is a copywriter and comedian. A woman of many talents. She has seen her clients drop off of a cliff in lockstep with recent ChatGPT advancements. So much so that she’s now out of a job.

Clients were simply unwilling to pay for copywriting any longer unless that writer could also provide email management and a funnel-building system, most likely because of the newfound popularity of ChatGPT

In ChatGPT’s defense, it sounds like she wasn’t fired due to AI. It was, however, much harder for her to get clients.

In May, 4,000 jobs were eliminated by AI. As a recession looms, it’s evident that companies are looking for ways to cut back on costs.

If you’re feeling left behind when it comes to AI (40% of workers feel that they don’t know how to use generative AI effectively), Salesforce created a free AI course. You can access it here.

Office Party take:

AI is here to stay. The genie is out of the bottle. But just as the internet replaced old jobs, it created new ones. The same will go for AI.

For more on the Emily Hanley story, check out Business Insider. 

Hamburger Mask Mandate

Let’s talk politics! Tell us where you stand on masks. Just kidding.

Fast-food burger chain In-N-Out is on a mission to outlaw masks for their employees. They believe masks get in the way of communication between workers and customers. Employees who still wish to wear a mask must provide a medical note.

In-N-Out employees who wear a mask to work without providing a doctor’s note that discloses a reason for doing so may face disciplinary action effective Aug. 14, the fast food chain said in a letter to workers

The mandate applies to In-N-Out locations in:

  • Arizona

  • Colorado

  • Nevada

  • Texas

  • Utah

But not Oregon and California.

Will other companies start to follow this trend?

Read more here.

Party Favors (extra reading)

  • Talent Edge Weekly

    Join thousands of HR and business professionals who get smarter, faster each week about the world of work, the workplace, and the workforce in just 10 minutes, every Sunday, 6 PM EST!

  • Transacted

    Join 25,000+ HR, IB, PE, HF & VC pros staying on top of the latest deals and trends with Wall Street's most interesting newsletter (for free).

  • What’s New About Working Remotely?

What do you think of today's party?

Login or Subscribe to participate in polls.

PS - We launched an AI Meme Machine and named him PartAI. His latest…

(A self portrait)