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
Interesting. I like all four, especially #3.
>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.
>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
Good read
https://www.slowboring.com/p/recent-layoffs-at-big-tech-dont-spell
I saw one headline saying they -particularly G- were using layoffs to bust the rising union activists. Debbie suspects there's some of that.