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My intuition is that layoffs will be limited to speculative ventures; i.e., startups that aren't profitable yet and/or are highly dependent on outside investmen
by _bxg1 7y ago
My intuition is that layoffs will be limited to speculative ventures; i.e., startups that aren't profitable yet and/or are highly dependent on outside investment. Risk is suddenly very unattractive, which is a major turnaround from 6 months ago.
I don't think tech in general is in trouble. As a whole it's probably one of the least in-trouble sectors as the world moves online. We'll just see a lot of developers shifting from moonshots to projects that create real value, which may not be a bad thing.
- danpalmer 7y agoAlternatively, lay-offs could be focused in companies who are profitable but with poor cash flow and who suddenly become insolvent. Earlier stage companies typically rely less on incoming cash from revenue and more on cash reserves from investment. Plus, investors have targets to meet on investments. They’re going to get more risk averse but they can’t stop investing for 6 months entirely.
- jedberg 7y agoReading this thread I think you're mostly right, but there are stories here of people in established companies in hard hit industries (event planning, hospitality, etc) that are also getting laid off.