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I work in the NY area and engineering positions are still plentiful. I think what you're seeing in the SV market is in part a response to the venture capital crunch. That said, I wouldn't worry too much about finding a "safe" job. The only thing worth worrying about is whether the company you're joining is going to be impacted by how difficult it is to get venture capital. I don't see any companies or money completely pulling out ala 2000, but it has become more difficult to get vc money if you are a border-line success

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