Re:Ericsson to lay off 8,500 employees
by nine_k on Friday February 24, 2023 @02:25PM
(#34928814)
Tech / IT is of course special, because it was seen (correctly) as an engine of indeterminately large growth: software scales really well, and integrated circuits are almost as good, currently limited by production capacity, not market demand.
For this tech received very special treatment, colossal P/E, a shower of investment, all in an attempt to grab a slice of this wildly growing pie.
But almost every exponent in reality is a bottom part of an S-curve. The growth was indeterminate, not infinite. As growth stalled or reversed, the special treatment did not exactly stop, but its extent contracted severely. Questions about actual profitability started to arise, for instance.
For this tech received very special treatment, colossal P/E, a shower of investment, all in an attempt to grab a slice of this wildly growing pie.
But almost every exponent in reality is a bottom part of an S-curve. The growth was indeterminate, not infinite. As growth stalled or reversed, the special treatment did not exactly stop, but its extent contracted severely. Questions about actual profitability started to arise, for instance.