3 ms·
You do realize the layoffs in the tech sector were because of Trump's tax cuts right? There was a provision that kicked in 2022 that made engineers more expensi
by mempko 2y ago
You do realize the layoffs in the tech sector were because of Trump's tax cuts right? There was a provision that kicked in 2022 that made engineers more expensive. Companies could no longer expense engineers the way they did before and had to amortize their cost over 5 years. Startups were especially hit hard with higher tax bills.
This is why politics matters folks. Always read the fine print.
- wahern 2y agoThat may have been part of it, but over hiring during the pandemic plus the disappearance of cheap money with increased interest rates had at least as much to do with it.
- mempko 2y agoThis is the common narrative but you have to ask yourself why it makes sense, because it doesn't. Interest rates going up doesn't hurt everyone, some benefit! Interest rates going up benefit savers and hurt debtors. A lot of the large companies that laid people off had huge amounts of cash reserves and benefit from higher interest rates. These were highly profitable companies laying people off. Neither over-hiring or interest rates explains this. What does explain it are sudden increase in costs (like taxes).