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Comment on Ask HN: What is the underlying factor behind the tech layoffs?

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Some companies are in legit trouble, unprofitable, were counting on VC funding and aren’t getting it in a high interest rate environment. Need to cut costs for longer runway / ipo.

The big tech / profitable companies are taking advantage of this and using opportunity to cut labor costs. Add to this the fact that they did overhire during pandemic, layoffs make sense.

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