Plain English with Derek Thompson Why Big Tech's Jobs Bubble Burst. Plus, SBF's Scandal Deepens.
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Jan 24, 2023 
William Cohan, an award-winning journalist from Puck, dives into the paradox of tech layoffs amid low unemployment rates. He discusses how overhiring during the pandemic led to the loss of over 130,000 jobs in major companies. Cohan also unpacks the FTX scandal, shedding light on the mismanagement of funds and the ethical dilemmas investors now face. He explores Sam Bankman-Fried's financial maneuvers and the complex legal battles ahead, raising provocative questions about accountability in finance.
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Tech Layoff Mystery
- The tech layoffs contrast with the 21st-century norm of a weak general economy and booming tech sector.
- The current situation is an inversion, with a strong labor market and struggling tech companies.
Overhiring in Tech
- Big tech companies overhired during the pandemic, anticipating a digital boom that didn't fully materialize.
- This miscalculation led to inflated workforces and subsequent layoffs.
Interest Rate Impact
- Rising interest rates shifted investments from high-growth tech companies to established businesses with healthy margins.
- This market adjustment prompted layoffs as tech companies sought to improve their profitability.