Sequoia Capital and Ron Conway sent a mail/held a meeting to warn their portfolio companies about the need to tighten their spending belt. These were early warning alarms to the tech industry who had thought they would be secure from the Wall Street meltdown.
Ron’s mail is particularly chilling - he attached two of his mails from early 2000 (some people archive that long!!), warning his then companies (twice in three months) about the need to squeeze extra time from current cash, even at the cost of heavy downsizing.
I have seen the post-2000 economic scenario. I had just graduated in 2002 from The (caps intentional) best engineering institute in India. And I am personally witness to the sense of complacence that stems from the It-will-not-happen-to-us-hah syndrome. And guess what - I have seen people far more qualified than me get crushed. And I take a look today and see a lot of those who got crushed have rise from the ashes and done very good for themselves.
I recently had a conversation with a friend who pointed out that the net total income netted by our alma mater juniors is greater than ours. Because we joined at a time when incomes had fallen to an all time low - and contrary to what people may thing, they do not get corrected as per current fresher income standards.
That may be true - and its happening all over again. Personally, after going through all that, a layoff or two is no problemo for me.
Here’s a thought to all those who are peeing in their pants at having lost a job or two - you will get screwed, but life will correct itself in the end. And it will make for a wistful smile all those years later, holding a nice glass of Laphroaig.