Connect with us
https://tickernews.co/wp-content/uploads/2023/10/AmEx-Thought-Leaders.jpg

Money

Tech jobs wreck – has reality finally set in?

Published

on

It’s been a shocking 18 months for the tech sector, battered by higher interest rates which have impacted the ability of tech firms to raise cash. Now their staff are feeling it.

The AFR reports that Canva’s office in Surry Hills has gained recognition as one of the top workplaces in Australia, attracting an impressive 300,000 job applications annually.

In the past decade, the technology sector has been viewed as a paradise for workers. Various publications awarded accolades such as “best place to work” to companies in the sector, highlighting perks like office rock-climbing walls and well-being grants for employees.

Competition for talent reached unprecedented levels, and startup leaders often expressed frustration about the difficulty of finding skilled engineers.

Are the good times coming to an end?

The market began to shift as interest rates rose and investors became more stringent, demanding profitability and withholding fresh capital.

Initially, small startups began downsizing their workforce, and some had to make further cuts.

Now, larger companies are adopting more subtle cost-cutting measures by implementing performance management systems to identify underperformers.

Goodbye to perks

The year 2023 has proven to be significantly worse for layoffs in the technology sector compared to the previous year.

Tech giants such as Amazon, Meta (parent company of Facebook), Microsoft, Google, IBM, SAP, Salesforce, and numerous smaller companies have announced substantial job cuts, surpassing the cuts made last year.

The underlying issue stems from the fact that Big Tech companies aggressively hired during the pandemic.

The surge in remote work and increased e-commerce prompted a technology buying spree. However, these companies are now facing declining revenues.

While global IT spending is projected to increase in 2023, with notable growth in enterprise software and IT services, the overall rise is expected to be modest.

Market research firm Gartner indicates that data center systems and communications services are predicted to grow by less than 1%, while hardware sales are anticipated to decline.

Moreover, ongoing supply chain challenges, inflation, and the Ukrainian conflict are exerting a substantial impact on both business and consumer spending. These factors have raised concerns of a potential recession.

Ranking downgrade

Previously, employees could rely on a 95% likelihood of receiving an “outstanding” or “great” rating. However, the chances of being rated above average have now increased, while the number of individuals identified as below average has doubled.

This decision caused discontent among certain Atlassian employees, leading them to express their concerns on the company noticeboards, claiming that it jeopardized the friendly culture. On the other hand, some employees celebrated this change, stating that the new system would prevent highly paid colleagues from leaving work early in the afternoon without putting in sufficient effort.

Continue Reading

Money

Powell defends the Fed’s independence from Trump

Published

on

As Trump’s presidency approaches, Fed Chair Jerome Powell signals he won’t back down on protecting the central bank’s autonomy.

With the election results still rolling in, Federal Reserve Chair Jerome Powell has already made it clear that he intends to uphold the Fed’s independence, even if it means clashing with the new administration.

In a statement on Thursday, Powell declared he would not resign if President-elect Trump asked him to, asserting it would be illegal for any president to fire or demote a sitting Fed governor.

This stance comes amid signals from Trump’s team indicating they may seek influence over the Fed’s monetary policies, including interest rate decisions, challenging the longstanding norms that keep the Fed separate from politics.

Not stepping down

Powell’s terse response to questions on the issue emphasized his commitment: when asked if he would step down at Trump’s request, Powell replied simply, “No.” And when asked if the president could legally demote Fed governors, he affirmed, “not permitted under the law.”

Historically, Trump has shown impatience with Powell’s decisions, especially on interest rates.

If Trump tries to replace Powell or other Fed leaders prematurely, he could face legal challenges and market backlash.

Economists argue that an independent Fed actually benefits Trump’s agenda by stabilising rates.

 

Continue Reading

Money

Federal Reserve lowers rates amid eased job market

Published

on

The Federal Reserve has cut interest rates by a quarter-point, bringing the benchmark rate to a range of 4.5% to 4.75%, as economic growth continues but job gains slow.

The Fed noted that labour market conditions have “generally eased,” even with low unemployment, signalling a more cautious approach amid a stable economic expansion.

The statement marks a shift in Fed language, now saying inflation has “made progress” toward the 2% goal instead of the prior “further progress.”

With inflation holding steady around 2.6%, policymakers aim to keep economic risks balanced, despite pressures from slower job growth.

This rate cut reflects a strategic move to sustain economic momentum while cautiously watching inflation’s gradual trend toward the Fed’s target.

The decision was unanimous, aligning Fed priorities with a balanced approach to support both employment and price stability.

Continue Reading

Money

Trump victory sparks market surge as Wall Street soars

Published

on

Donald Trump’s election victory has sparked a massive rally in the stock market.

Banks and industrial companies led the surge as investors bet that Trump’s plans for deregulation and tax cuts will boost economic growth.

Shares of big banks, like JPMorgan and Goldman Sachs, soared as investors predicted fewer regulatory restrictions.

Meanwhile, industrial giants such as Caterpillar and steelmakers like Nucor also hit record highs, reflecting optimism about U.S. manufacturing.

In contrast, clean-energy stocks took a hit, as Trump’s policies are expected to favour traditional energy sectors.

This surge comes amid rising Treasury yields and falling gold prices as investors gain confidence in the transition to a Trump administration.

Continue Reading

Trending Now