It’s early 2023. All the big tech companies have done at least one round of layoffs1. Many midsize tech companies have as well. The rationale for layoffs at smaller startups that aren’t yet revenue positive is simple: cut costs and try to get to profitability faster. But why are big tech companies that make billions of dollars every quarter also laying people off? Revenue for big tech companies increased drastically during COVID Costs (dominated by headcount), grew to match, but on imperf...
