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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MC10 | Bankless Consulting 🎯
@mc10
Agreed. Also, in Tech any R&D spent is practically capex. When rates go up, you've got to be more careful. Big tech orgs are unable to measure productivity and they hide behind the false axiom that "productivity is hard to measure". That's BS. Start tracking outcomes, not # of people.
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