This week in “Cookies”, Calcalist’s technology podcast:
2022 was the year of the “hangover” for startups and stocks of technology companies, with a decrease in values, a drop in stocks and broad cuts, which came after the end of the big money party. Calcalist reporter Sophie Shulman is not sure that 2023 will be much better. “This year the companies will start running out of money, they will have to raise. Not all of them will be able to raise, and some will close,” she says. “The main question is whether the rate hike will cause a deep recession in the US. Companies are already thinking about how to cut everything, how to be more efficient. The layoffs of 2022 were not layoffs of a significant slowdown, but of fat reduction. It is possible that in 2023 we will see real layoffs of 30% or 40% of the company. I estimate that there will be quite a few companies that will have to do this.”
We will know where this year will go in the coming weeks: “If in the reports to be published in January the companies do not lower their forecasts, it will be an excellent signal that the Fed has managed to do the unbelievable and land the American economy on a soft landing, without a deep recession.”
And there is also room for a little optimism. “This is not the dotcom bubble. It’s like they say every time there’s a real estate crisis that we don’t need more buildings. Today’s technology is so deep everywhere, even in traditional industry, that it is not comparable at all.”
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