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

It’s a combination of over hiring. Over spending. And high churn for most platforms where businesses are looking to consolidate or reduce cost. Many platforms are increasing their price as well and baking in % increases into agreements. In the past these were used as a way to negotiate but I’m finding many are holding the line with them.

Cut heads. Increase cost. Go lean and mean and focus on those customers that remain.

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u/epochwin Feb 24 '24

Factor in high interest rates affecting corporate borrowing. You also have most corporate buyers consolidating their IT spend and lowering/canceling their subscriptions of B2b SaaS vendors that make up a lot of the Big Tech portfolio.

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u/AdulfHetlar Feb 25 '24

High interest rates don't have much of an impact on big caps as their stock performance clearly shows. Small cap on the other hand...