Rinox ,

I think it's a consequence of higher interest rates drying up VC money, meaning that tech companies now have to actually be profitable, rather than just grow.

If the plan was grow now, profit later, then later has come

InverseParallax ,

Nailed it, investors are demanding profit increases, it's not just interest rates (though they're the main reason) but also the corporate tax cuts in 2018 basically dumped a ton of profit onto corporations because they repatriated all their offshore cash they'd been hoarding.

That bump lasted 2 years, but the expectation of higher revenue is still there, it doesn't matter if you got lucky at slots last month, if you make your normal salary this month investors will be absolutely pissed.

insomniac ,
@insomniac@sh.itjust.works avatar

This sounds too stupid to be real but I was working for one of the largest corporations in the world during this period and we were congratulated on 20% growth even though we did nothing. Of course we didn’t get an extra bonus or anything but they acted like we had an incredible year when we really just had an average year with a massive tax cut.

Then the next year, our goal was to grow at 20% again and when we missed it by 17%, no one got a bonus or raise.

This timeline is the stupid one.

EddieTee77 ,

This is what irritates me. You still made money just not as much as you wanted or hoped so your company punishes you. You can't have infinite growth

thanks_shakey_snake ,

You can't have infinite growth

Every publicly-traded company: "Hold my beer"

orphiebaby ,
@orphiebaby@lemmy.world avatar

Capitalism: "Numbers go brrrrr"

AgentOrange ,

This is also a great example of why higher interest rates aren't automatically a terrible thing. In general, it's probably a good sign for the economy that companies are expected to be profitable. Means resources are being used well. The limitless VC money kinda meant any dumb idea regardless of merit got funding.

MsPenguinette ,

I wish we lived in a society where not everything needed to be profitable. People deserve treats and sucks to have things that made our lives better go awake because shareholders demand money

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