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Businesses Technology

Silicon Valley Salaries Are Shrinking, Leaving Workers In the Lurch (mercurynews.com) 234

An anonymous reader quotes a report from the Mercury News: Krista DeWeese has been laid off four times in the last eight years. She wakes up every morning feeling anxious. Will I lose my job today -- again? Will I have enough to pay the rent? Even though she's an educated, experienced marketing professional, worrisome thoughts trail the 47-year-old Fremont native's every waking moment. Currently a contract worker at a health science company, she has been struggling to find secure work that pays enough to keep up with the exorbitant cost of living in the Bay Area. She has a lot of company. The past year has been tough for the Bay Area, as thousands of layoffs skittered across the region. Even workers at Silicon Valley's tech titans -- including Meta, Apple and Google -- have faced job cuts. Since 2022, tech companies in the region have slashed roughly 40,000 jobs. And with each layoff, workers are entering a market that is less friendly to job seekers than it used to be.

New research from tech advocacy organization Women Impact Tech, which examined job and salary data nationwide from 2020 to 2023, affirmed what many people already know: companies are tightening their belts -- slicing jobs and salaries alike -- and many people are struggling to find work that pays enough to live comfortably in the Bay Area. Despite having the highest tech salaries in the country, Silicon Valley has experienced the biggest drop in pay compared to other tech hubs, falling 15% from 2022 to 2023, according to Women Impact Tech. And with inflation, DeWeese and others are watching their spending power shrink. More than 10 years ago, she was earning over $100,000 in total compensation. That amount has dropped 15% since she was laid off from Yahoo in 2016, and has not increased since. "I feel like my career has been frozen in time," DeWeese said. "Things have been at a standstill."

Paula Bratcher Ratliff, president of New York-based Women Impact Tech, said that the shrinking pay hits especially hard for women, given the continuing gender pay gap. "The Bay Area took one of the largest hits," Ratliff said. "Women make up about 28% of the entire workforce in tech. When you're seeing an overall decline at 15%, and for pay equity, women have not made much traction." [...] Despite the trend of shrinking salaries in the world's tech capital, Ratliff, with Women Impact Tech, doesn't believe it's necessarily a race to the bottom. "Today, about every company is a tech company, whether they're in retail, consumer goods or hospitality," Ratliff said. "There's so many opportunities in tech without having to focus on those jobs with the tech organizations alone. We're seeing great companies emerge." While it's still unclear where the light is at the end of the tunnel for DeWeese, she remains hopeful her situation will improve. "You have to have hope or else you're just going to live in fear of being let go, again and again," she said.

Silicon Valley Salaries Are Shrinking, Leaving Workers In the Lurch

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  • by Chronus1326 ( 1769658 ) on Tuesday June 11, 2024 @06:44PM (#64541903)
    The problem here is California, not the person and not the industry. Leave Cali for Chicago, Dallas, Houston, New York, Atlanta and you'll be fine.
    • by ShanghaiBill ( 739463 ) on Tuesday June 11, 2024 @06:57PM (#64541923)

      California is hecka expensive, but in the past, companies paid a premium because of the concentration of highly skilled workers ... who came here because of the concentration of companies that pay well.

      But WFH changed everything. If people aren't coming to the office, then it doesn't matter if they are in San Jose or Atlanta ... or Mumbai.

      Companies no longer have a reason to pay the "California premium".

      • or Mumbai

        Except companies that have to follow US law and can not afford data leaving US jurisdiction.

        If you outsource to Mumbai or really anywhere with hit-or-miss employer protections for intellectual litigation, then it's just a matter of time before your data is sold to the highest bidder.

        Someone takes a list of emails and sells them here in the United States, employers have legal recourse to crater that person under litigation the likes most mortals have never seen. Someone in Mumbai sells that list of emails,

      • by Austerity Empowers ( 669817 ) on Tuesday June 11, 2024 @08:48PM (#64542151)

        It definitely matters if you're working from Mumbai. In my experience working with people over 3 timezones away comes with a definite productivity hit. Over about 6 timezones and you aren't able to work effectively.

        But yeah, leaving HCOL areas makes a lot of sense.

      • by Shaitan ( 22585 )

        There is a very good reason to pay a higher premium than Mumbai, like having an employee whose experience is real and isn't secretly the same body filling a seat for three of your roles and a handful of competitors roles as well.

      • by Shaitan ( 22585 )

        Recent surveys have tipped companies hands on all that. The scheme of paying people in San Jose, Atlanta, Dallas, Oakland, or Akrin less for the same job because of their location instead of using the normal strategy of paying based on the employer location/market is just the sister to the return to work scam.

        It's all just a cover to get as many people to leave voluntarily as possible in a form of unofficial layoff.

    • by registrations_suck ( 1075251 ) on Tuesday June 11, 2024 @07:01PM (#64541935)

      Exactly. Other places are cheap. Pittsburgh is cheap. Sure, it's a shit hole, but it's cheap. My wife is a woman. She makes about $160K/year. It goes a long way in Pittsburgh. Our mortgage payment is under $1100, and that's on a 15 year note too.

      Not much shitting on sidewalks here though, so if that's a must-have for you, Pittsburgh isn't where you want to be.

    • No, it's not. Bay Area still kicks everybody's ass: https://www.wsj.com/tech/san-f... [wsj.com]
    • by Shaitan ( 22585 )

      Nope, it is just as bad in Dallas. Technology companies are listing positions but they aren't hiring and salaries have been stagnant for a decade.

    • If you leave for Chicago, don't buy real estate!
  • And with inflation, DeWeese and others are watching their spending power shrink.

    Wonder who DeWeese and her colleagues voted for ...

    • Re: (Score:2, Interesting)

      Probably didn't vote for Trump, so they probably didn't vote for the biggest source of inflation.
      • Lol, I mean Joe did sign something called The Inflation Reduction Act and so yeah he must have reduced inflation.

        Do you also believe inflation was 9% under Trump like Joe said?

  • by Firethorn ( 177587 ) on Tuesday June 11, 2024 @06:49PM (#64541911) Homepage Journal

    I love how the article has to call out female "wage gap" harming what is still some of the highest paid workers in the world. When many major companies have done investigations to make sure that they weren't underpaying their female engineers - only to discover that they were underpaying male engineers instead.

    The "wage gap" isn't from companies paying women less for the same work - it's that women make different choices in work profiles, which costs them raw wages.

    As another poster put it - move out. The high wages are causing companies to outsource from silicon valley, depressing wages there, but it's still one of the most insanely expensive places to live in the world. It needs fewer people if nobody is going to fix the housing problems (which I view as mostly politically and NIMBY caused).

    • by taustin ( 171655 ) on Tuesday June 11, 2024 @07:19PM (#64541973) Homepage Journal

      The "wage gap" isn't from companies paying women less for the same work - it's that women make different choices in work profiles, which costs them raw wages.

      And take more time off when they have children than their spouses, meaning if they are the same age in the same job, they actually have less work experience.

      The other big, big factor, according to the research, is that women negotiate for different priorities when they're looking for a job. Men will usually negotiate for every last dollar, where women are far more likely to negotiate for flexible time off, and other perks that don't show up on the paycheck.

      (Interestingly, one study found that when pay is completely transparent during job offer negotiation - the candidate knows what future coworkers are already making - the "pay gap" tends to increase.)

      But none of that services the narrative that men are evil and must be subjugated for their own good by their female betters.

      • Re: (Score:2, Interesting)

        by dfghjk ( 711126 )

        Women who "negotiate" for more time off are not doing "equal work" compared to those who do not. Your argument is an open contradiction, so save us the lecture on narratives.

        "nterestingly, one study found that when pay is completely transparent during job offer negotiation - the candidate knows what future coworkers are already making - the "pay gap" tends to increase."

        Sounds like a study you did, it is preposterous on countless levels.

        • Women who "negotiate" for more time off are not doing "equal work" compared to those who do not. Your argument is an open contradiction, so save us the lecture on narratives.

          And that's what taustin was explaining, he wasn't claiming that the situation is actually "non-equal pay for the same work", he was explaining WHY the work isn't equal. so save us the strawman.

          Sounds like a study you did, it is preposterous on countless levels.

          That's why we do studies though, because "common sense" is not always correct.

          It's like how when fast food restaurants started putting calorie counts on their menu, the average number of calories per order went UP, not down. The predictions were that calorie counts would go down as people made healthier choices.

          It's

    • by Anonymous Coward on Tuesday June 11, 2024 @08:01PM (#64542059)

      All you need to know is this:

      If the wage gap was real (men being paid more than women for the same job), why would money hungry corporations ever hire men? Just hire all women and save yourself the pay gap monies!!!

      Oh. Because it's totally BS.

      • Indeed. I've posed this question to supporters of the wage gap before.

        It helps when the people who believe in the wage gap being a deliberate thing (IE supervisors see female candidate and deliberately lowball the wage) also believes that corporations are soulless evil paperclip maximizers (which, to be fair, is close to the truth).
        In addition, there's LOTS of corporations out there, and it's fairly easy to found a new one.

        If I could truly get away with paying women something like 70% of the salary of men

        • I can answer the question about why companies don't just hire all women.

          Because they'd need to hire 10x as many HR people (also all women) to handle the endless team of complaints and drama those women file every 2 seconds.

          • I remember reading about a legal firm back in the day that refused to hire women for basically this exact reason - the supposed increased risk of lawsuits over sexual harassment and such.

            Of course, they promptly got sued for sexual discrimination in their hiring practices...
            Again, I don't dispute that there are individual cases of sexual discrimination out there, just that it doesn't add up to some sort of systematic pay gap.

            • by Shaitan ( 22585 )

              Note that even your 'hire all women' proposal highlights the REAL gender discrimination in our society. If you hire only men the law against gender discrimination will be applied to you. But if you discriminate against straight white men, that's just fine, carry on.

        • Speaking as an economist . . . It's *trivially* easy to explain why an employer would pay women less than men. What we *cannot* explain is why an employer would pay men more than women!

  • Marketing? (Score:5, Insightful)

    by TJHook3r ( 4699685 ) on Tuesday June 11, 2024 @07:01PM (#64541939)
    It would have been interesting to hear about actual tech jobs, rather than a marketing role in a tech company. I guess the article's angle is that this is a woman in tech, yet the tech bit is scarce
    • Laid off 4 times in 8 years sounds like a trend for the employee not the employer. And its a contract worker not an actual employee. If your contract is not renewed is that really being laid off?
  • by 93 Escort Wagon ( 326346 ) on Tuesday June 11, 2024 @07:03PM (#64541943)

    But the story presents itself as being about tech workers - yet the example presented is about someone who works in marketing?

    • by Hadlock ( 143607 ) on Tuesday June 11, 2024 @07:13PM (#64541959) Homepage Journal

      Not only do they not work in tech, but they work in a field that's particularly ripe for automation with LLM

    • Because high tech Bay Area is no longer high tech. It's all about Marketing! You think social media is "tech"? Social media is extremely low tech; a company isn't a tech company just because they have a lot of white collar jobs sitting behind a computer keyboard! The biggest "tech" companies in Silicon Valley are nothing more than advertising delivery systems!

      • You think the infrastructure and code behind Facebook, Google, Twitter, AWS, and the rest is low tech?

        Any bunch of new college grads could pull it off? Most newly graduated CS majors can't spell the words much less understand the concepts required to build a huge scaling infrastructure.

        Did your company fire all the developers and replace them with marketing girls?

        • The infrastructure behind most companies are complex. Are they all high tech companies? I think GE is a high tech company but it never gets on the list along with companies that don't do anything more than have a data center and a web front on it.

          It used to be that "tech company" meant you made technological products - computers, computer parts, engineering parts, technological equipment, scientific equipment, integrated circuits, space telescopes, etc. Not advertising!

    • by Shaitan ( 22585 )

      Tech has marketing as well.

  • This is why salaries are not ballooning anymore. It's a cycle. It will come back. Furthermore, layoffs are a feature of the startup economy because 90% of startups fail. Rumors of the Bay's demise have always been exaggerated. https://www.wsj.com/tech/san-f... [wsj.com]

    Sam Clemens started his writing career in San Francisco.
  • Business (Score:5, Informative)

    by John Allsup ( 987 ) <slashdot@cha l i s q u e.net> on Tuesday June 11, 2024 @08:46PM (#64542149) Homepage Journal

    Companies only hire people because they need to, and only pay employees as much as they need to. If they could make money without paying any salaries, they would. There is a constant drive to increase profits and decrease costs. That extends to staff and how much they get paid. Companies exist for one purpose: to make money, all else is a side effect.

    • Companies exist for one purpose: to make money, all else is a side effect.

      With a philosophy like that, no wonder there are so many shitty companies. A company exists to do things for others. If they are good at that, they will be very profitable. If they concentrate purely on cash flow, the services they offer will suffer in support of cash flow, but once the quality suffers, the cash flow will stop.

      Get out of that cycle and create shit for the purpose of creating shit. People want what they buy to be what they intended to buy. Anything less is cutting off a potential portion of

  • Remember all those articles about RTO mandates and some said that your job in SV included the cost of living in SV?

    The ones stupid enough to move back to SV to RTO now got the short end of the stick.

  • That's pretty much the state of things.

    Experts sitting in front of microcomputers building software from scratch is mostly a thing of the past by now.

    There are 30+ ready-made libraries and classes for OIDC in every PL concievable. Absolutely no need for me or anybody else to build a new one. So goes for storage or any other generic software requirement ever.

    I don't need to build a scalable backend anymore, I just need to be smart about booking the right services with Azure, AWS, Google Cloud or whatever. It

  • I remember in the mid-90s when everybody who had a copy of FrontPage and a basic understanding of HTML could briefly command unreasonable salaries. That gravy train eventually stopped running - as will most such trains in IT. Most people have to continually adapt, and accept the fact that their income will not be tied to traditional modes of small continual increments and reliability.

    And a lot of people will have to come to terms with the fact that their whole profession (such as it is today) may simply sto

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