Tech’s new season of shrinking
Amid a brutal market sell-off, tech companies that focus on streaming, e-commerce and social media are facing especially steep declines.
Why it matters: Internet firms that benefited from pandemic habit changes are now being forced to trim their outlooks and spending as the market leaves behind a frothy era of soaring investments and zero interest rates.
Driving the news: Tech firms have started to announce layoffs, hiring freezes and spend cuts.
- Cameo, the hit app that connects celebrities to fans virtually, laid off 87 people Wednesday — about 25% of its workforce — in an effort to balance costs.
- Meta, parent to Facebook, is implementing a broad hiring freeze, per memos seen by Insider, and doesn’t expect to meet its annual hiring goals.
- Netflix last week laid off staff from Tudum, its fan-centric editorial website launched in December. Executives are vowing to impose more “financial discipline” in response to a massive earnings…