Re:Amazon to lay off 9,000 more workers after earlier cuts
by lancesells on Monday March 20, 2023 @06:31PM
(#35239770)
Meta had $23B in profit last year.
Re:Amazon to lay off 9,000 more workers after earlier cuts
by disgruntledphd2 on Tuesday March 21, 2023 @04:31AM
(#35243755)
Facebook was definitely not the poster child for this, they have been running profitably since well before their IPO. Sheryl Sandberg did a great job building that business.
I think Uber might be a better example of the strategy you're referring to.
Re:Amazon to lay off 9,000 more workers after earlier cuts
by flashgordon on Tuesday March 21, 2023 @12:26PM
(#35248485)
Also unlike back in the day, this set of layoffs feel/looks largely opportunistic as a way to kowtow to wall st. The veil is off. Companies are unashamedly open about who they are in bed with. Agree the bubble is inflation induced and the fed is trying to demand more unemployment to cut down spending. Wouldn't an alternative be investing in public infrastructure/housing projects instead? I do feel very frustrated and ignorant at not being able to grasp this entangled web all the while normalizing the blood letting and sacrifice of real human livelihood for the sole enrichment of wall st.
When you pull up the financials for many newly IPO'd companies you'll see that many of them have questionable ability to ever generate profit, and most certainly not at the size they are at. However all of them have pretty healthy cash reserves from the (obviously overvalued) IPOs they just went through.
Facebook/Meta was the poster-child for "don't worry about profit, just worry about growth!" For years it was assumed that Facebook proved this strategy made sense, but even today we're seeing this giant falter. Even if Facebook pulls it off, it doesn't mean that many of the "growth is all that matters!" startups following in its shadow will.
We'll see companies fail, but this bubble will take a lot longer to unwind than the dotcom bubble.