Tag: layoffs

When Will The Next Big Round Of Layoffs Occur?

When Will The Next Big Round Of Layoffs Occur?

Layoffs are ticking up now (Google, Cisco, Roku, Evolve, Drift to name a few) as companies work through 2024 operating budgets. As interest rates and the cost of capital remain elevated in Q4, I suspect that companies - especially those with elevated Debt/EBITDA ratios - will announce further layoffs in October and November. However, I … Continue reading When Will The Next Big Round Of Layoffs Occur?

Tomorrow’s CPI = Noise

Tomorrow’s CPI = Noise

Regardless of where CPI lands tomorrow, my view is that the Fed will hold rates higher for longer than the market believes. Higher interest rates combined with a shrinking money supply (QT), translates to: tighter monetary conditions, a higher cost of capital, less revenue visibility for companies, more employee layoffs and a deeper recession. The … Continue reading Tomorrow’s CPI = Noise

Technology Layoffs Continue To Climb

Technology Layoffs Continue To Climb

More Technology-related layoffs have occured in Q4 2022 than at the COVID economic trough in Q2 2020 (51,048 employees in the month of November 2022). Technology layoffs continue to mount as: interest rates climb; inflation remains elevated; global demand sputters and; as macro-economic uncertainty remains high. Check out Layoffs.fyi (created by Roger Lee), to track … Continue reading Technology Layoffs Continue To Climb

Tech Company Layoffs Are Rarely “One & Done”

Tech Company Layoffs Are Rarely “One & Done”

When it comes to Technology companies, headcount reductions are rarely "one & done". This used to be especially true of Bay Area Technology companies which are famous for lacking operating discipline (i.e. cost discipline). However, the Bay Area aversion to running profitable businesses has permeated the Tech sector over the past 12 years of easy … Continue reading Tech Company Layoffs Are Rarely “One & Done”

Tech Layoffs Are Spiking

Tech Layoffs Are Spiking

More than 24,000 Technology sector employees have been laid off month-to-date making November the worst month of the year for layoffs as Technology companies prepare 2023 budgets. Q4 2022 could rival Q2 2020 when more than 60,000 Technology sector employees were laid off. Q4 2022 is tracking at approximately 37,000 Technology sector employee layoffs. Our … Continue reading Tech Layoffs Are Spiking

Sell This Rally

Sell This Rally

Equity indices have rallied today as reported Headline and Core CPI increased by "only" 7.7% and 6.3% Y-O-Y respectively. Many Technology names are up double-digit percentages today on this macro news despite the fact that many companies are cutting heads (it's not just CRM, LYFT, META, MSFT, NFLX, RDFN and SHOP), given the weak economic … Continue reading Sell This Rally