
Today, Explained Why are businesses acting like there’s a recession?
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Jan 27, 2023 Emily Stewart, a Vox writer specializing in economic issues, discusses the recent wave of layoffs from tech giants like Google and Microsoft despite positive economic indicators. She analyzes the disconnect between corporate strategies and actual consumer behavior, questioning the rationale behind these downsizing decisions. Stewart also highlights the role of media narratives in shaping public perception of the economy and their potential effects on job security for workers, all while addressing rising costs like gas and eggs in the current economic climate.
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Layoff Impact
- Recent layoffs, while prominent in headlines, represent a small fraction of the total US workforce.
- These job cuts at big companies don't fully reflect overall labor trends.
Tech Layoffs
- Tech layoffs are sector-specific, with overhiring during the pandemic being a key factor.
- Companies like Peloton misjudged sustained growth, leading to subsequent job cuts.
Tech Slowdown
- Tech's growth has slowed, transitioning from rapid expansion to more traditional business models.
- Rising interest rates and shareholder pressure contribute to layoffs as companies seek to cut costs.

