Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Palestinian Ministry of Health: Two were martyred in Israeli shelling that targeted a besieged house in the town of Qabatiya in Jenin
At least 68 dead in migrant shipwreck off Yemen: IOM
Trump: We want to feed the people in Gaza, we do not want them to starve.
US President Donald Trump: We will impose sanctions on Russia if it does not end the war on Ukraine.
Israeli media: Polls show that 52% oppose Prime Minister Benjamin Netanyahu while only 29% support him.
Israeli media: 32% of Americans still support "Israel's" war on Hamas, while 60% oppose it.
Israeli media: Core US support for "Israel" hits its lowest, while support for Palestine reaches its highest levels.
Al Mayadeen's correspondent reports martyrs, injuries in Israeli bombardment of home in Heker al-Jame area in Deir al-Balah, central Gaza.
Al-Quds Governorate: Today, the spatial division of Al-Aqsa Mosque began in a public and dangerous manner, and we warn of a religious war in the region
The Ministry of Health in Gaza: This brings the total number of victims of famine and malnutrition to 175, including 93 children

Silicon Valley braces for tech pullback

  • By Al Mayadeen English
  • Source: Agencies
  • 11 Jun 2022 15:34
3 Min Read

Veteran venture capitalists and CEOs expect an economic downturn.

  • x
  • Silicon Valley braces for tech pullback
    Silicon Valley braces for tech pullback

After a decade of euphoria, Silicon Valley start-ups, venture capitalists, and major tech corporations alike are slashing investment and eliminating employees, prompting some in the IT industry to publicly forecast a US recession.
 
Facebook and Amazon have reduced their frenetic hiring, while high-flying younger startups such as scooter company Bird and email app Superhuman have laid off employees.

Elon Musk, CEO of Tesla, recently informed staff that he had a "very awful feeling" about the economy, and Lightspeed Venture Partners cautioned in a blog post that "the boom times of the last decade are unambiguously over."

Stitch Fix, a fashion tech business, announced on Thursday that it was eliminating around 15% of paid employment, or 330 jobs, sending its stock price plummeting. Chief executive Elizabeth Spaulding stated in a staff memo that the workers losing their positions were informed that morning.

The tech-heavy Nasdaq index plummeted 3.5 percent on Friday, exacerbating the broader industry downturn. It is now down 28% for the year.

Related News

Cholera devastates Darfur region amid conflict, US aid cuts

US uses tariffs to strongarm India on Russia ties

Read next: Federal Reserve Chief: Nothing suggests US vulnerable to recession

 

Many in the industry are experiencing whiplash as a result of the abrupt change. Uncertainty has descended over Silicon Valley as venture investors, tech founders, and average employees debate whether the pessimism is exaggerated or if tech is truly the canary in the coal mine, foreshadowing a broader economic slump in the United States.

According to Till von Wachter, a UCLA professor of economics, tech start-ups act as a "leading indicator" for the economy. Higher interest rates can make it more difficult to borrow capital to start new businesses, which normally take a long time to break even.

The raging bull market of the last decade enriched not just owners and investors, but also hundreds of thousands of employees who were paid in shares on top of their regular salary.

Read next: Apple offers huge bonuses to stop talents from joining Meta

 

In recent years, technology has experienced some turbulence. Millions of Americans lost their jobs during the start of the coronavirus pandemic, and tech stocks, like the rest of the market, plummeted precipitously. However, it quickly recovered, and many grew even stronger during the pandemic as government spending bolstered the economy and people spent more money on e-commerce and digital services.

A new wave of economic instability has poured over the world as the war in Ukraine continues, China's economy struggles because of new financial restrictions, and the United States Federal Reserve hikes interest rates in an attempt to manage inflation. Share prices in Silicon Valley began to fall sharply in January as a result of the uncertainty.

  • Silicon Valley
  • United States
  • US recession
  • Facebook
  • Amazon

Most Read

A rescued crew member from the ETERNITY C vessel in a video released by the Yemeni Armed Forces on July 28, 2025 (Yemeni Military Media)

Yemen Navy reveals fate of targeted Eternity C ship crew

  • Politics
  • 28 Jul 2025
An Israeli tank explodes following an ambush by al-Qassam Brigades in Gaza, Occupied Palestine, undated (Al-Qassam Military Media)

Al-Qassam strikes Israeli vehicles in Gaza, inflicts casualties

  • Politics
  • 30 Jul 2025
UAE lodges complaint against Israeli ambassador over 'misbehavior'

UAE lodges complaint against Israeli ambassador over 'misbehavior'

  • Politics
  • 1 Aug 2025
Protesters chant anti-Israeli slogans as they carry a banner that reads:" Freedom for Palestine, Alliance stop the war," during a demonstration in support of Palestinians in Gaza, outside the Israeli embassy, in Athens, Monday, June 9, 2025 (AP)

Athens mayor slams Israeli ambassador over Gaza war, graffiti claim

  • Politics
  • 3 Aug 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
A member of the al-Qassam Brigades, the armed wing of Hamas, takes part in a parade as he celebrates a ceasefire agreement between Hamas and the Israeli regime in Deir al-Balah, Gaza Strip, Sunday, January 19, 2025 (AP)
Politics

Al-Qassam: We’ll allow aid to Israeli captives if Gaza siege ends

Freed Lebanese freedom fighter Georges Abdallah during an interview on Al Mayadeen, which aired on Sunday, August 3, 2025 (Al Mayadeen screengrab)
Politics

Exclusive: Resistance key to building state, Georges Abdallah says

United Nations Secretary General Antonio Guterres gives a statement about the situation in Gaza at UN headquarters, Friday, June 27, 2025 (AP)
Politics

UN warns Gaza faces water crisis, looming famine under Israeli siege

Israeli soldiers drive their armored personnel carrier along the Gaza Strip, in southern occupied Palestine, Wednesday, July 30, 2025 (AP)
Politics

Ex-Israeli general says Gaza starvation campaign isolated 'Israel'

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS