Let me ask you this.
If we can correlate (which I think we can) "a tech company should have X headcount when the Federal Funds Rate is 0.25%" and "a tech company should have Y headcount when the Federal Funds Rate is 5.25%, where X is less than Y", I'm going to guess most tech companies just play it by ear/quarter by quarter (like the rest of the economic/financial markets based on all sorts of reports/data that come out incrementally over the year)
Right now, maybe companies haven't done enough layoffs to get their headcount to where it needs to be if the Federal Funds Rate is the full blown "doomsday" terminal 5.25%. Maybe companies are doing it incrementally and waiting to see if the Fed will pivot, because they have to keep in mind how expensive re-hiring people to chase growth will be?
Would it make sense to hire as many people as possible right now, to lock their salaries in at a much lower price than it will be in the future, due to inflation (if they think the pivot is coming)? Just throwing random ideas out but I do know one thing, I know very little :P
GOOG did this. Lots of Directors and VP got cut.
META "flattening" will impact highly paid senior leadership as well.
Thanks. I needed a good laugh this morning