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This is a bubble imploding, this is serious. The value of money has shifted for good after a decade of excess, there is rampant inflation and there is a recess
by grey-area 4y ago
This is a bubble imploding, this is serious.
The value of money has shifted for good after a decade of excess, there is rampant inflation and there is a recession incoming.
These companies have seen the writing on the wall and are making the first of many layoffs to address this. This started last year and will last another year at least, possibly a few years.
Apparently most eases of this sore are still in denial about it but the reasons are real and presssing.
The other thing this paradigm shift in rates impacts of course is profitless startups which are now worth zero if they can’t turn a profit within a year. Those that can’t will go bust and lay off all employees, thus making the recession deeper.
- type-r 4y agoWhy do you say it has shifted "for good"? The Fed itself plans to bring interest rates back down actually fairly quickly [0], following a half-year of decreasing inflation rates [1]. [0] https://www.federalreserve.gov/monetarypolicy/fomcprojtabl20221214.htm https://www.federalreserve.gov/monetarypolicy/fomcprojtabl20... [1] https://www.statista.com/statistics/273418/unadjusted-monthly-inflation-rate-in-the-us/ https://www.statista.com/statistics/273418/unadjusted-monthl...
- grey-area 4y agoThe Fed is infamous for being wrong, both in projections and in reactions. In fact a good case could be made for their policy mistakes leading them to this dilemma where they must choose between causing inflation or recession.
- SpeedilyDamage 4y agoMy experiences around bubbles popping were substantially more violent and sudden. This feels a lot more like a normal ebb. I doubt this layoff trend continues past June, and other companies are still hiring.
- GaryNumanVevo 4y agoOkay but if that was true, these companies wouldn't also be issuing massive stock buybacks at the same time. It's normal ebb to someone with decades of time in the industry.