Leaders.com
  • Business
  • Leadership
  • Wealth
  • Master Classes
  • Business
    • Entrepreneurs
    • Executives
    • Marketing and Sales
    • Social Media
    • Innovation
    • Women in Business
  • Leadership
    • Personal Growth
    • Company Culture
    • Public Speaking
    • Productivity
    • Hiring
    • Social Issues
    • Leaders
  • Wealth
    • Investing
    • Cryptocurrency
    • Retirement
    • Venture Capital
    • Loans and Borrowing
    • Taxes
    • Markets
    • Real Estate
  • Master Classes
Markets Layoffs

Recent tech layoffs have allowed for big profits for investors (Spencer Platt/Getty Images)

By Tyler Hummel Leaders Staff

Tyler Hummel

Tyler Hummel

Tyler Hummel is a news writer for Leaders Media. He was the Fall 2021 College Fix Fellow and Health Care...

Full bio


Learn about our editorial policy

Apr 4, 2023

Tech Boom Follows Tech Layoffs 

Tech companies have seen a massive stock resurgence in the months following thousands of layoffs. 

Key Details

  • The tech world has faced hundreds of thousands of layoffs since November, with multiple rounds of companies cutting thousands of employees from companies like Amazon, Salesforce, Alphabet, Microsoft, Meta Platforms, and Disney. 
  • Alternatively, tech stocks have seen a resurgence since January 1, with Meta (71%), Tesla (57%), Apple (24%), Microsoft (17%), and Alphabet (15%) seeing notable stock market gains. 
  • Investors have applauded the decisive actions of these corporations to thin payrolls, with many companies having the spare profits to engage in stock buybacks and seeing the enthusiasm from the ongoing artificial intelligence (AI) race, Axios reports. 

Why It’s Important 

The tech industry was flushed with newfound business and cash during the COVID-19 pandemic as the entire economy adjusted to remote work and lockdown mandates. Now the tide has turned. Inflation and recession fears have tightened the wallets of major corporations and tech companies, many of which reported notable losses in 2022. The layoffs could signal an imminent recession, Axios notes. 

In the meantime, the stock resurgence is a positive indicator for tech companies worried about weathering the upcoming year of recession fears and high inflation. These two trends will not show positive signs until the companies begin rehiring lost positions, indicating that the economy is recovering and these companies are feeling more confident. 

Alternative Opinion 

Academy Securities head Peter Tchir warned in a recent interview with Yahoo Finance that the tech boom of the pandemic era has set the tech industry several steps back, that demand is shrinking, and the equity in new projects is drying up. He is also skeptical that AI will be a saving grace for this year and that investors should prepare for tech companies to break their low-point valuations for last year. 

“I think at some point, we are going to break last year’s lows on the S&P and Nasdaq. We are going to go through that because everyone kind of got bullish again, and we’re going to realize, oops, this is not as good. Consumers aren’t spending as much as people thought. Companies are still overburdened. We’re going to see that pressure point,” says Tchir. 

Home / News / Tech Boom Follows Tech Layoffs 
Share
FacebookTweetEmailLinkedIn

Related Stories

Wall Street Makes $100 Billion Bet on Weight Loss Pills

by PJ Howland Leaders Staff
Investing

Oct 25, 2023

Ozempic

Investor optimism around a potential blockbuster obesity drug by Structure Therapeutics led to soaring share prices across the weight-loss pharma sector.

Key Details

  • Structure Therapeutics' stock jumped 35% after reporting positive results from early clinical trials of a once-daily weight-loss pill.
  • The experimental drug helped participants lose about 5% of their body weight over one month without side effects, although there are concerns with Ozempic.
  • Analysts predict the global anti-obesity medication market could reach sales of $100 billion by 2030, up from $71 billion currently.
  • With promising growth prospects, investors are betting on companies developing new weight loss drugs like Structure, Eli Lilly, Novo Nordisk, and Pfizer.

Go deeper

FacebookTweetEmailLinkedIn

Seattle Takes The Crown For Advanced Tech Talent

by PJ Howland Leaders Staff
Tech

Oct 24, 2023

Seattle tech talent

Seattle has emerged as the metro area with the most advanced tech talent, beating out tech hubs like San Francisco and Silicon Valley.

Key Details

  • According to a new ranking by the Burning Glass Institute, Seattle has the highest proportion of advanced tech workers compared to other cities with similarly sized tech workforces.
  • The ranking evaluated 60 million high-paying, in-demand tech job postings and histories to identify cities with cutting-edge roles like AI and cybersecurity rather than legacy tech positions.
  • With tech giants Amazon and Microsoft headquartered in Seattle, the city edged out the San Francisco Bay Area, Boston, Austin, and Raleigh on the list.
  • The report found that demand for software developers and IT support specialists has declined over the past five years as companies seek more specialized tech talent.

Go deeper

FacebookTweetEmailLinkedIn

More Americans Can’t Keep Up With Car Payments

by Colin Baker Leaders Staff
Loans and Borrowing

Oct 23, 2023

car loans, used cars

A record number of Americans are behind on their car loan payments as higher interest rates and prices weigh on consumers.

Key Details

  • According to data from Fitch Ratings, 6.11% of car loans were at least 60 days delinquent in September, the highest since tracking began in the early 2000s.
  • Some interest rates on used cars can rise to as much as 21%, according to Bankrate.
  • Soaring prices and rising interest rates are squeezing consumers, making it difficult for some to keep up with their auto loans.

Go deeper

FacebookTweetEmailLinkedIn
Chevron Gas Deal
Markets

Oct 23, 2023

Chevron Makes $53 Billion Deal Amid Surging Gas Prices

by PJ Howland Leaders Staff
nike logo
Company Culture

Oct 20, 2023

Nike to Require More In-Office Days From Employees

by Colin Baker Leaders Staff
blue collar workers
Retirement

Oct 20, 2023

Explaining The ‘C+ Grade’ Retirement Ecosystem in The United States

by PJ Howland Leaders Staff

Recent Articles

Hiring

Nov 1, 2023

Learn the Winning Answers to the Most Common Phone Interview Questions

Come to your next phone interview fully prepared

Personal Growth

Oct 30, 2023

85 Quotes on Self-Love to Boost Your Self-Esteem

Don’t fall into the trap of harsh self-criticism

Company Culture

Oct 27, 2023

What is a Sabbatical? Your Ticket to Restful Growth and Meaning

Sabbaticals can benefits both employees and businesses

  • Business
  • Leadership
  • Wealth
Join the Leaders Community

Get exclusive tools and resources you need to grow as a leader and scale a purpose-driven business.

Subscribing indicates your consent to our Terms & Conditions and Privacy Policy

Leaders.com
  • Privacy Policy
  • About
  • Careers
  • Cookie Policy
  • Terms
  • Disclosures
  • Editorial Policy
  • Member Login

© 2025 Leaders.com - All rights reserved.

Search Leaders.com