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(NBC News)   Dot-com Crash 2: Silicon Valley Boogaloo   (nbcnews.com) divider line
    More: Fail, Cut, Confirmation, Layoff, research startup, computer maker, Tech companies, online used car dealer, home-buying website  
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1176 clicks; posted to Business » on 28 Nov 2022 at 1:35 PM (8 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



18 Comments     (+0 »)
View Voting Results: Smartest and Funniest
 
2022-11-28 11:56:30 AM  
Maybe, just maybe, tech companies should be profitable and self-sustaining rather than maximizing growth and revenue at all costs.
 
2022-11-28 12:18:08 PM  
But the people at the top are okay, right? Right?
 
2022-11-28 1:39:19 PM  

Aar1012: But the people at the top are okay, right? Right?


yes the they have parachutes
 
2022-11-28 1:39:29 PM  
FTA: "Nuro: 300 [employees to cut]

The maker of autonomous delivery vehicles told employees in an email posted online by the company that it was cutting 20% of its staff, or about 300 "Nurons," on Nov. 18."

So long as they fire the person who coined that phrase into the sun.

/more like morans, amirite?
 
2022-11-28 1:43:46 PM  
A lot of those are extremely sensitive to interest rates - real estate and lending businesses in particular.  Those are not even slightly surprising.  Amazon and Cisco lay off a ton of people every year.  This might be higher than usual, but they just kind of suck all the time.  There are also some big companies laying off a trivial portion of their workforce (MSFT, Salesforce), which, again, happens every year.  Most of the rest seem like the sort of tiny companies that always have issues.

The only major surprises on that list - big companies that I would not have expected to have layoffs 6 months ago - are Meta and Twitter and both of those are due to their owner's apparent desire to put billions of dollars in a giant pile and light it on fire.
 
2022-11-28 2:05:44 PM  

OptionC: A lot of those are extremely sensitive to interest rates - real estate and lending businesses in particular.  Those are not even slightly surprising.  Amazon and Cisco lay off a ton of people every year.  This might be higher than usual, but they just kind of suck all the time.  There are also some big companies laying off a trivial portion of their workforce (MSFT, Salesforce), which, again, happens every year.  Most of the rest seem like the sort of tiny companies that always have issues.

The only major surprises on that list - big companies that I would not have expected to have layoffs 6 months ago - are Meta and Twitter and both of those are due to their owner's apparent desire to put billions of dollars in a giant pile and light it on fire.


If you didn't think Twitter, a massively unprofitable company, wasn't going to have huge layoffs I question your ability to do any prognosis.

This is just the start.  2023 will offer some great buying opps for risk assets, but we ain't close to capitulation yet.
 
2022-11-28 2:08:12 PM  

OptionC: A lot of those are extremely sensitive to interest rates - real estate and lending businesses in particular.  Those are not even slightly surprising.  Amazon and Cisco lay off a ton of people every year.  This might be higher than usual, but they just kind of suck all the time.  There are also some big companies laying off a trivial portion of their workforce (MSFT, Salesforce), which, again, happens every year.  Most of the rest seem like the sort of tiny companies that always have issues.

The only major surprises on that list - big companies that I would not have expected to have layoffs 6 months ago - are Meta and Twitter and both of those are due to their owner's apparent desire to put billions of dollars in a giant pile and light it on fire.


How many of them do you look at and wonder who thought they'd ever make a profit?  How many of them are the old "same old business, but we're techbros so throw money at us?".  I mean Carvana just sells used cars (probably stolen, good luck getting the title from them).

Amazon is only interesting in that they mentioned that Alexa (and related customer assisted/paid surveillance) has been losing a ton of money.

Personally, I don't think either Zuckbook (can't call it Facebook anymore) or Twitter were healthy.  Facebook is going to go steadily downhill as users die out and adveritizers find better ways to scam the elderly, and Twitter was unlikely to ever have been profitable.  But that wasn't dying slowly enough for their owners who need to make a big splash out of everything [disclosure, I like VR and recently bought another non-meta headmount].
 
2022-11-28 2:23:34 PM  

OptionC: A lot of those are extremely sensitive to interest rates - real estate and lending businesses in particular.  Those are not even slightly surprising.  Amazon and Cisco lay off a ton of people every year.  This might be higher than usual, but they just kind of suck all the time.  There are also some big companies laying off a trivial portion of their workforce (MSFT, Salesforce), which, again, happens every year.  Most of the rest seem like the sort of tiny companies that always have issues.

The only major surprises on that list - big companies that I would not have expected to have layoffs 6 months ago - are Meta and Twitter and both of those are due to their owner's apparent desire to put billions of dollars in a giant pile and light it on fire.


The difference is that Meta has billions and billions in cash reserves, and despite what the stock has done recently, the revenues aren't actually down that much.  The stock is down to 2020 levels, though, that's true.  It was overvalued, so understandable.  The tech companies with the cash to take advantage of the bad market will survive.
 
2022-11-28 3:01:34 PM  

Black_Lazerus: Aar1012: But the people at the top are okay, right? Right?

yes the they have parachutes


It appears more complicated than that.  I'm seeing estimates that less than 5% of those laid in the past 6 months, in the industry, were American citizens with more than two years applicable experience.

I'm not sure what that means.
 
2022-11-28 3:24:56 PM  

rohar: Black_Lazerus: Aar1012: But the people at the top are okay, right? Right?

yes the they have parachutes

It appears more complicated than that.  I'm seeing estimates that less than 5% of those laid in the past 6 months, in the industry, were American citizens with more than two years applicable experience.

I'm not sure what that means.


less than 5% of those laid in the ....

What?
 
2022-11-28 3:40:01 PM  

mr0x: rohar: Black_Lazerus: Aar1012: But the people at the top are okay, right? Right?

yes the they have parachutes

It appears more complicated than that.  I'm seeing estimates that less than 5% of those laid in the past 6 months, in the industry, were American citizens with more than two years applicable experience.

I'm not sure what that means.

less than 5% of those laid in the ....

What?


That should have been "laid off".

But let's be honest, it's funnier this way.
 
2022-11-28 4:19:23 PM  

mr0x: rohar: Black_Lazerus: Aar1012: But the people at the top are okay, right? Right?

yes the they have parachutes

It appears more complicated than that.  I'm seeing estimates that less than 5% of those laid in the past 6 months, in the industry, were American citizens with more than two years applicable experience.

I'm not sure what that means.

less than 5% of those laid in the ....

What?


If you weren't aware, Americans aren't born, they're hatched. Each state has a giant incubator filled with large eggs that are laid by a Megasloof.
 
2022-11-28 4:41:23 PM  

DaMannimal: OptionC: A lot of those are extremely sensitive to interest rates - real estate and lending businesses in particular.  Those are not even slightly surprising.  Amazon and Cisco lay off a ton of people every year.  This might be higher than usual, but they just kind of suck all the time.  There are also some big companies laying off a trivial portion of their workforce (MSFT, Salesforce), which, again, happens every year.  Most of the rest seem like the sort of tiny companies that always have issues.

The only major surprises on that list - big companies that I would not have expected to have layoffs 6 months ago - are Meta and Twitter and both of those are due to their owner's apparent desire to put billions of dollars in a giant pile and light it on fire.

If you didn't think Twitter, a massively unprofitable company, wasn't going to have huge layoffs I question your ability to do any prognosis.

This is just the start.  2023 will offer some great buying opps for risk assets, but we ain't close to capitulation yet.


Twitter wasn't massively unprofitable - it was slightly unprofitable relative to its market cap.  Companies can  (and do) zombie along forever like that.  They only became massively unprofitable when Elmo put $13B of debt on their books.
 
2022-11-28 7:58:39 PM  
If you haven't made it as a corporate technical fellow or a director then you really aren't going to make the kind of money it takes to have a decent lifestyle in the valley.
 
2022-11-28 9:02:38 PM  

rohar: mr0x: rohar: Black_Lazerus: Aar1012: But the people at the top are okay, right? Right?

yes the they have parachutes

It appears more complicated than that.  I'm seeing estimates that less than 5% of those laid in the past 6 months, in the industry, were American citizens with more than two years applicable experience.

I'm not sure what that means.

less than 5% of those laid in the ....

What?

That should have been "laid off".

But let's be honest, it's funnier this way.


Seriously though.

Is the two years of experience or the American part bothering you more?

I think the jobs most cut were the ones recently hired. So, the experience part is more important than the American part.

Good engineers who know the system, American or otherwise, would not be let go easily.

Also, I've found that engineering staff is half non-Americans in a lot of tech companies. Companies are a giant world-sized vacuum sucking up engineers from all over the world.

An old quote an HR said was that on average an engineer adds over a million dollar of value to a company. Not every engineer but on average. And, that was a quote from like 6-7 years ago.
 
2022-11-29 4:53:31 AM  
Twita had revenue of $5 000 000 000
And had losses of $200 000 000
And Elon bought it for $44 000 000 000

Why am I having trouble selling my unprofitable business for ~9x revenue?
 
2022-11-29 2:36:55 PM  

GlamrLama: Twita had revenue of $5 000 000 000
And had losses of $200 000 000
And Elon bought it for $44 000 000 000

Why am I having trouble selling my unprofitable business for ~9x revenue?


Because it's not patronised by a huge whiny man-baby who thinks they could do it better and has the cash to prove it?
 
2022-11-29 7:53:41 PM  

GlamrLama: Twita had revenue of $5 000 000 000
And had losses of $200 000 000
And Elon bought it for $44 000 000 000

Why am I having trouble selling my unprofitable business for ~9x revenue?


He laid off 75% of Twitter. So, that leaves him $1.25 B in costs and profit of $3.25 B.

His loan eats $1.5 B and so, he will be making $1.75bn per year after paying interest.
 
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