How This Recession Will Damage the Tech Sector

This video discusses how the tech sector reacts to an imminent recession. Outline Forecasting 0:00 - 0:20 Recessions 0:20 - 0:30 Reducing Costs 0:30 - 0:50 Access to Capital 0:50 - 1:06 Tech Sector 1:06 - 1:50 Reducing Spend on Vendors 1:50 - 2:07 Customer Success 2:07 - 2:30 Big Tech is bracing for an economic recession and an uncertain future. That, in turn, is triggering more economic angst. The biggest tech firms, most of whom report quarterly earnings next week, have offered recent hints they are hunkering down. News of layoffs and hiring slowdowns have become commonplace across Silicon Valley. Start-ups are saying capital is drying up. Workers are being put on notice that businesses are changing. Meanwhile, Twitter’s protracted bad romance with Elon Musk is tangled up in court and the outcome is uncertain, a point the company made as it reported disappointing numbers Friday. Amazon is facing a growing labor movement, and Facebook is facing a new advertising climate. Regulators domestically and abroad are threatening to crack down on the industry as a whole. Companies with weak balance sheets will run out of money when cash flow reverses and they cannot find outside financing. Some seemingly big names will disappear almost overnight, or become a lot less prominent and sell for tiny fractions of their current valuations. Many of the companies about which you wonder “how do they stay in business?” won’t. Owners will be looking to restructure and engage in creative business recombinations. Mergers, spinoffs, buyouts, you name it — assuming financing is available. Execs who have been delivering borderline performance will be fired, while those with a track record of success will find excuses to leave before things spin out of control. Big names could drop fast, especially after a disastrous quarter or two. Big companies will abandon speculative or underperforming business units. On the plus side, this will leave new room for start-ups to find disruptive business models that the giants are suddenly too scared to touch. Advertising spend usually maps to total economic growth, meaning that companies who are mostly dependent on ads for revenue will struggle as businesses tighten their ad budgets. Some traditional media companies, already hurt by years of shifting ad revenues to tech giants like Google and Facebook, won’t make it out the other side. The smaller social networks like Twitter, Snap and Pinterest could also see tougher going. Shareholders will be looking for somebody to blame, spurring lawsuits and board activism. Employee activism at places like Google will dry up and recruiting engineers will get a lot easier. Visible inequality will get worse. Billionaires will be the enemy. Tech in particular. #recession ______________________________________________________________________ If you’re looking to ship your nocode project faster or just want to get smarter about the emerging nocode/lowcode trend then join the only community for nocoders who are serious about building better, faster, products. State Change Pro (https://statechange.ai/) is a community of seasoned veterans and industry CTOs who are available to work through your nocode questions together. We’ve helped hundreds of business owners compose solutions faster using the latest and greatest nocode tools. We have direct relationships with dozens of nocode platforms and are friends with many of the founders. We’ve worked with hundreds of Fortune 500 companies. If you want to stop wasting time and finally deliver your project to your customers then click the link in the description below and join the only nocode community for builders who want to ship. https://statechange.ai/