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Why widespread tech layoffs keep happening despite a strong U.S. economy (www.cnbc.com)

submitted 10 months ago by MicroWave to c/economics

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The tech sector is having a big 2024. Nvidia just crushed earnings expectations. The artificial intelligence boom remains in full swing. The tech-heavy Nasdaq index is up more than 8 percent year to date.

The U.S. economy is also doing surprisingly well, adding 353,000 jobs in January, well ahead of economists’ forecasts. Hotter-than-expected inflation data may also keep the Fed from cutting rates as soon as the market expects, a sign that the economy remains strong enough to support tighter monetary policy for longer.

It’s a different story for tech workers, though. 

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[–] [email protected] 1 points 10 months ago* (last edited 10 months ago)

just a wild guess: because often jobs are tied to growth/expansion, and investing in developing infrastructure. companies doing well has nothing to do with the amount people working for them.