Why widespread tech layoffs keep happening despite a strong U.S. economy
Summary
The U.S. economy is also doing surprisingly well, adding 353,000 jobs in January, well ahead of economists forecasts. Hotter-than-expected inflation data may also keep the Fed from cutting rates as soon as the market expects, a sign that the economy remains strong enough to support tighter monetary policy for longer. "The layoffs to the start of 2024 signal a dramatic shift in the tech industry," said Jeff Shulman, professor at the University of Washingtons Foster School of Business. Companies need to free up cash to invest in the chips and servers that power the AI models behind these new technologies. Watch the video above to learn why another rough year of layoffs may lie ahead for tech workers, and why the surprising strength of the U.S. economy may not be coming to their rescue.