Tech historian Margaret O’Mara is considered Silicon Valley’s chief explainer. In an interview, she talks about the current wave of layoffs, about the Valley’s crisis of identity – and its possible decline.
Nicholas Wirminghaus
Ms. O’Mara, whether Amazon, Alphabet, Meta or Salesforce: There is a massive wave of layoffs taking place in the tech industry. Why now?
MARGARET O’MARA: I think three different things are happening right now. First, macroeconomic conditions have changed: interest rates are rising. The tech industry is very sensitive to this because while they were low there was a great incentive for investors to put their money into startups and public companies. Inflation is also a factor because it affects consumer purchasing behavior — a big concern for a company like Amazon.
Source: Stern
