of its workforce as part of a plan to reduce operating costs and improve operating margins amid the challenging economic environment.
Other firms announcing layoffs this week include online personal stylist Stitch Fix and video platform Vimeo. Stitch Fix is trimming 20% of salaried positions, Vimeo will lay off 1Schiffer said "Layoffs, while clearly challenging for employees, are highly bullish for shareholders because it builds a greater future potential for earning growth and stock price opportunities in the medium term.
Stock performance in 2023 will hinge greatly on the U.S. Federal Reserve’s rate hike strategy, possible recession, and ongoing financial concerns around inflation and COVID-19 stoppages. "The only surprises in tech stocks will be how beaten up they may get, or how fast many might bounce back if the Fed goes past merely pausing rate cuts should a"With interest rates rising more in the short term, the intrinsic valuation of tech stocks, especially those with no earnings, will be beaten down as valuations explode further into bits," he went on.
The Fed is expected to raise interest rates again when it meets on Jan. 1 - Feb. 1. The central bank raised interest rates seven times last year and hinted of more increases to come. The benchmark rate stands at a range of 4.25% to 4.5%, the highest in 15 years.
Invest for the long term.
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