GeekWire - The power dynamics behind tech job cuts

One of the defining tech industry trends of the past decade, along with the meteoric expansion of big companies and their insatiable appetite for talent, was the growing influence of engineers who commanded ever-increasing salaries. 

• That power dynamic is changing with the waves of layoffs by Amazon, Microsoft, Salesforce, and other major tech companies. Recruiters say the cutbacks are already impacting salary expectations when workers start new jobs.

• "Here’s my theory: This is a grab by the tech companies to re-establish their power,” says GeekWire co-founder John Cook on this week’s episode of the GeekWire Podcast.

• Listen to the episode here or subscribe to GeekWire in Apple Podcasts, Spotify, Google Podcasts, or wherever you listen.

Meanwhile, the job losses continue across the tech industry.

• On Friday alone, we reported on layoffs that hit health software provider Edifecs, technical recruiting startup Karat, and tax software giant Avalara. 

• Google parent Alphabet is laying off 12,000 workers, about 6% of its global workforce.

• If the cuts at Amazon and Microsoft are the leading edge of a bigger pullback, it will have a “huge impact, both materially and psychologically,” on the Seattle tech ecosystem, says Margaret O’Mara, a tech historian, author and University of Washington professor.

• But in the long-term, tech will continue to grow, and Washington state is well positioned to take advantage, writes Ed Lazowska, a professor at the UW's Paul G. Allen School of Computer Science & Engineering. 

“The good old days are gone.”

• That was Seattle Mayor Bruce Harrell, speaking in Washington D.C. at a Brookings Institution event about leading cities in the face of pandemic-driven trends including the rise of remote work. Harrell said re-thinking the role of downtowns is the “greatest opportunity” for mayors across the country. Read more. 

Jeff Bezos made news this week with a rare visit to the newspaper that he owns.

• The Amazon founder attended a news meeting at The Washington Post on Thursday, sparking speculation — and plenty of coverage in competing media — about why he might be there. Read more. 

Exterro and Zapproved, two legal tech companies based in Oregon, are combining.

• Exterro, which is eyeing an IPO, acquired Zapproved, a Portland startup founded in 2008 that ranked No. 92 on the GeekWire 200, our list of top privately-held tech companies in the Pacific Northwest.