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That doesn't make sense because tech companies are not sticking cash in ~4-5% annual return treasuries, it would make sense if this were the 70s with double dig

• ProfessorLayton 3y ago
  But it does make sense in the broader tech context, especially for companies that need funding, which is a large portion of the companies that have conducted layoffs this year. VCs for example need to raise their own cash to invest, and investors are less likely to take a huge risk with VCs when the risk-free rate is so high.
  • flashback2199 3y ago
    You're right, I just think there have been more layoffs than can be explained by a couple percent increase alone. HBR also agrees with this view.
    • hn_throwaway_99 3y ago
      > I just think there have been more layoffs than can be explained by a couple percent increase alone. Sure, of course. There was also massive over-hiring during the pandemic in anticipation of some sort of "new normal" that didn't pan out. My comment was more in response to the idea of "why should interest rates affect company hiring for companies that have a ton of cash on hand and are profitable?"
• jrockway 3y ago
  I think companies are. When I worked at Google, I put my bonuses in a deferred compensation plan which was managed by the internal treasury management team. That's the team that tries to make money off of cash that's just sitting around with nothing to spend it on. I think I got about 3% return on that, which was in the era of 0% savings accounts and 0 yield US treasuries. (With 20/20 hindsight, you would take all that money in Google stock and hold it, of course, but I had more than enough exposure to the share price at the time.)