Tech Layoffs Will Continue
Technology firm layoffs will cut into more than just Sales & Marketing departments. They will slow innovation / product development cycles, they will certainly cut into demand for various projects, including Generative AI (despite what you may read from other publications). They will slow growth in general across Technology and more generally across the economy. On the Gen AI front, companies such as OpenAI, Microsoft and Google will continue to build infrastructure, but end-demand for exploratory projects will dwindle. This round of layoffs is about as bad as we thought it would be when we started to write about it in the late fall and early winter. This round is not over as companies will announce layoffs as they report earnings right through February. April earnings calls will likely have a second, smaller round of layoffs for companies that did not pull the trigger in January/February hoping that the economy would turn around and/or that interest rates would have trended far lower by now.
