Are we now experiencing “the great correction” in the tech world? Meta has announced layoffs of 11,000, we just had now privately-owned Twitter reduce headcount by 7,500. Stripe let go of 14% of its people, and Sketch had to let a bunch of it’s employees go recently as well. These are just the ones I recall off the top of my head - I’m sure there are others.

Higher interest rates reduce the availability of cheap venture capital; leading to increasing pressure to run a business to deliver profit and return to shareholders; and a number of these firms are behemoths that may have reached the end of their natural growth potential.

Social media in particular is a business that relies on ad revenue above all else. If interest rates continue to increase, people will buy less, and thus advertisers will have less free cash flow to put towards advertising. Ultimately this will result in more pressure on revenue for the social media companies.

Good luck everybody; I think the tech seas are about to get rough for some time.