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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 la
by 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 agoYou'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?"