Ben Scharfstein
@scharf
I don't think big tech layoffs are because the companies got bloated, it's because rates went up. If the ROI (including opportunity cost of capital) on a marginal hire is positive they should be hired. As rates increase the opportunity cost of capital increases so this calculation changes.
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Alex Miller
@alexlmiller
Right, both are true. Companies bloated themselves by making “luxury” hires in a time of cheap money (both investment and customer dollars) Now that customers and investors are spending less, a lot of those folks look unnecessary at best, and like a drag on performance at worst.
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