The Pragmatic Engineer

The Pragmatic Engineer

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The Pragmatic Engineer
The Scoop #8: Netflix: What Happens When Growth Ends?
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The Scoop #8: Netflix: What Happens When Growth Ends?

A chilling tech market: late-stage companies looking overvalued, and hiring slowdowns are coming. What does this mean for tech compensation?

Gergely Orosz's avatar
Gergely Orosz
Apr 21, 2022
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The Pragmatic Engineer
The Scoop #8: Netflix: What Happens When Growth Ends?
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The Scoop is a bonus series, covering patterns and trends I’ve heard within big tech and high-growth startups.

Just in September 2021, I wrote about how we are likely in the middle of the hottest tech hiring market of all time thanks to what seemed like a perfect storm of six different trends hitting the same time. 

How quickly times change.

The tech market heating up how it did from the middle of 2020 to late 2021 might soon be a thing of the past.

In this issue we look at:

  • Netflix: what happens when growth ends. Netflix stock dropped steeply after the company failed to report user growth. What is a growth stock, and what happens when a company’s stock stops being one?

  • Late-stage companies: looking overvalued. What does this mean when considering offers, and how does it impact the hiring for these companies?

  • Hiring slowdowns: at some tech companies. Will slowdowns and freezes be a trend or are we seeing outliers?

  • Layoffs: coming to conserve cash? How much of this strategy should we expect from private companies?

  • Tech compensation: packages amid the turbulent market. Are they staying level, going up or down? My observations. 

For this newsletter issue I pulled in journalist and fellow Substack writer Eric Newcomer for additional commentary. Newcomer covers the intersection of technology and venture capital in his newsletter.

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