drew millions of investors, big and small, into industries of the present and future. But in recent months the blush on the high-tech rose has turned embarrassingly red to many investors., which suggests to many investors that tech is tricky, if not terrifying. After all, since December, the tech heavy NASDAQ exchange is now down 39%. That's almost twice as much as the wider, diversified stock market has fallen.
Former Employment Development Department director Michael Bernick has been following labor markets for four decades. "What we do see this week is that tech layoffs are the highest since January 2021, and they include established firms across the spectrum as well as more recent smaller tech start-ups," said Bernick. Adding, "The reason for the layoffs at Netflix is different from the reasons driving layoffs at Carvanna or layoffs at Robinhood or layoffs that these other firms.""I've seen and actually suffered from a number of layoffs.
"Despite what we're seeing just the past week, there will continue to be a very, very, very strong market for people in tech," said Bernick. The very lifeblood of tech are venture capitalists. This year, investors blew away all records, shoveling $630 billion into venture capital firms. But with inflation and higher interest rates savaging the economy, even venture capitalists put less money into start-ups, but demanding better terms from them. But, they're not running for the exits.