When interest rates are very low, companies are incentivized to borrow more as they can get better returns by investing their own cash flow into assets with pre

When interest rates are very low, companies are incentivized to borrow more as they can get better returns by investing their own cash flow into assets with predictable returns. When those interest rates go higher and these higher interest rates are coupled with harsher terms, then the ability to invest decreases, companies view reducing headcount as the way to survive to the next phase.