Author Topic: Why “tech” companies have laid off 130,000  (Read 277 times)

ergophobe

  • Inner Core
  • Hero Member
  • *
  • Posts: 8539
    • View Profile
Why “tech” companies have laid off 130,000
« on: January 21, 2023, 01:09:21 AM »
Several theories from Derek Thompson
https://stocks.apple.com/AntZ_5XKvTfCWKfQF5MvzNQ

1. Companies thought the pandemic was an accelerant to the economy of 2030 but it was a bubble

2. Interest rates punish companies with high P/E based on future growth.

3. My favorite. “Tech” companies are really advertising companies for the most part and advertising takes big hits in turndowns

4. Social contagion. CEOs see other companies lay people off and see stock price boom, so they think they should lay people off too. Many of these companies laying people off are profitable, but they want to keep stock prices high too

Brad

  • Inner Core
  • Hero Member
  • *
  • Posts: 3918
  • What, me worry?
    • View Profile
Re: Why “tech” companies have laid off 130,000
« Reply #1 on: January 21, 2023, 01:17:30 AM »
Interesting.  I like all four, especially #3.

Travoli

  • Global Moderator
  • Hero Member
  • *****
  • Posts: 1135
    • View Profile
Re: Why “tech” companies have laid off 130,000
« Reply #2 on: January 21, 2023, 05:09:47 AM »
>CEOs see other companies lay people off

Elon reduced the Twitter workforce by 80% and it's still live. I can't imagine that NOT being mentioned in any recent tech board meeting.

rcjordan

  • I'm consulting the authorities on the subject
  • Global Moderator
  • Hero Member
  • *****
  • Posts: 15063
  • Debbie says...
    • View Profile
Re: Why “tech” companies have laid off 130,000
« Reply #3 on: January 21, 2023, 03:17:17 PM »
>Elon reduced the Twitter workforce by 80% and it's still live

Debbie: When you look up "Theory X" in the new economics textbooks there's going to be a picture of that guy.

+
How Apple Has So Far Avoided Layoffs: Lean Hiring, No Free Lunches - WSJ

https://www.wsj.com/articles/how-apple-has-so-far-avoided-layoffs-lean-hiring-no-free-lunches-11674274185
« Last Edit: January 21, 2023, 03:50:47 PM by rcjordan »