Insights: Rising

debt costs, and

declining revenue.

[Without Easy

Money, The Tech

Sector Faces Hard

Times.]

Between 2012, when Facebook went public, and 2022, a battle for talent has been the linchpin for success at Silicon Valley, and internationally. Massive pools of funding and low interest rates meant companies could attract the best talent.

However, with slumping stock prices, slow economic growth and rising debt costs, the biggest technology employers are responding with huge cuts to boost margins amid difficult operating conditions.

Meta/Facebook announced 11,000 layoffs. Amazon is set to lay off 10,000 employees. Twitter has laid off several thousands, including Stripe, Microsoft, Salesforce, Snap, Zillow e.t.c, e.t.c

“The end of easy money will also separate the real innovators and entrepreneurs – people who build real value..”

It is time for investors/VC‘s and tech entrepreneurs to re-evaluate their runway and build new models.

More insights in the below article;