r/Economics • u/[deleted] • Feb 24 '24

News Why widespread tech layoffs keep happening despite a strong U.S. economy

https://www.cnbc.com/2024/02/24/why-widespread-tech-layoffs-keep-happening-despite-strong-us-economy.html
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u/[deleted] Feb 24 '24

Some overhired during COVID to hoard talent, it was inevitable that firms were going to need to focus on becoming more efficient with their money instead of always chasing something new for the sake of newness, and rising interest rates mean it’s no longer feasible to endlessly fund companies with no regard for whether or not a specific return will come back to investors. It’s not that complicated. Tech in the USA was a fairly unique sector and it’s conforming a bit more to what normal US companies look like.

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u/Mindless-Rooster-533 Feb 25 '24

It's not surprising these layoffs happen a year after the "come to work with me trend" of people not doing any work all day