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Big Tech Layoffs Predicted As 'Category 5 Storm' Looms

Derek Wolfe

Updated: January 4, 2023

Big tech layoff
Editor’s Note:

EDITOR'S NOTE: Whether climate change is something you’re worried about or not, it appears that the environment is not the only “denatured” thing signaling disaster. We’d argue that the “natural” balance of the economy was the first to be disturbed and negatively disrupted by the Federal Reserve’s interventionist schemes. We saw the Fed’s plans unravel in 2022, and this year will likely bring the process to its conclusion. As the article below warns, we’re facing a Category 5 economic storm, so to speak. And the range of its impact will likely be on a macroeconomic scale. Here’s what you need to keep an eye on, starting with the blow up in big tech.

2022 was worst year for the stock market since 2008

After the most volatile year for the stock market since 2008, Wedbush Securities managing director Dan Ives warned on "Mornings with Maria" Tuesday that Big Tech companies still need to "rip the Band-Aid off" in terms of layoffs as a "Category 5 storm" threatens the macroeconomic picture for 2023. 

HOST MARIA BARTIROMO: You've got a number of companies either freezing, hiring or cutting their workforce. Is that going to continue this year?

DAN IVES: Look, a lot of Big Tech, they were spending money like 1980s rockstars. And I think that really shows. Sometimes they were increasing 15, 20% per year. I still think it's a 'rip the Band-Aid off,' still some more headcount cuts. We think potentially another 8 to 10% headcount cuts in Big Tech. You look at what happened with Meta, and that's a good example. Once Zuckerberg finally read the room, cut in terms of what he needed to, stock ultimately lifted. I think, be that as a catalyst, I think you will see a continued cutting of heads in Big Tech because they're getting ready for the Category 5 storm in terms of what we're seeing with the macro.

 

Originally published by Fox Business Staff at Fox Business

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