Hi HODLers, Hiveans and Lions,
How is your weekend going? Probably better that some of the employees at numerous Tech companies who have been let go during the previous week. I wanted to look at recent layoffs in the Tech industry and maybe put this into perspective.
We are being bombarded by Layoffs news manking us feel like the economy is struggling while at the same time the Gov Employment Data are looking great and unemployment rate is at an all time low!
Recent ones at Zoom, Block, etc.. have hit the news but when looking at the data below, January 2024 layoffs have been much lower than the Jan-2023
Year To Date Tech Layoffs
Which industries are the most impacted?
In the end, looking at these numbers, it seems that most of the layoffs in the Tech industry are behind us and recent Q4-23 earnings of most of the Tech companies do show a strong increase in profitability.
Conclusion: Tech companies overhired during the pandemic and just cut most of their fat. And now... They are back to printing money.
I am a capitalist and I strongly believe in mostly free markets but I do think if the Mag7 continue to 2X/3X their profits over the next year. There will be a lot of pressure to invent new taxes or ways to get some of these profits back into the government chest.
In the meantime, stay safe out there!
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