Day by day more companies announce layoffs so will the trickle turn into a flood. The most recent one is Twilio laying off 11% of their workforce. There is a summary here of big tech layoffs that we’ve summarized below.
- HCL: 350
- SNAP: 1280+
- Better.com: 4500+
- Meta: 60 to 600
- Apple: 100
- Microsoft: 200
- Netflix: 450
- Twitter: ~100
- Shopify: 1000
- Tencent: 5500
Goldman Sachs is planning hundreds of layoffs later in the month and a CFO survey shows that 30% are planning on layoffs if the economy sours over the next six months.
It isn’t helping that the Federal Reserve is planning on raising rates next week thereby increasing the cost of debt and borrowing and the stock market has been correcting accordingly.
Our current strategy is to buy put options on key indexes and equities dated for as far out as possible because we are at the start of the correction. We expect the next 12 to 18 months to be brutal to markets and it will eventually become a great buying opportunity to expand on the the investments we have been “nibbling” on for the past few months.
Stay tuned and stay solvent…