Why are so many tech companies laying people off right now?

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In January, thousands of workers at Google, Microsoft, etc. lost their jobs, bringing the total number of large tech corporate layoffs to about 60,000.

Several of these layoffs are realistically related to the upcoming capital-raising challenges and possible recession.

The weak market is the clear cause of the layoffs.

Nowadays, investors are increasingly cautious and don’t want to fund high-risk projects.

Since investors are reluctant to make more investments, valuations have decreased, making it more difficult to raise significant sums of money.

Many firms raised large sums of money during the bullish 2020–2021 market at extremely high valuations which is another cause of layoffs.

The investors encouraged the startups to flourish by promising them future growth.

Now, companies are focusing more on profit even at the expense of slower growth.

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