Will there be an impact to us if a recession hits soon?
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Our revenue keeps declining - we can’t be making much more or perhaps any more than we bring in. I’m surprised we haven’t had cuts yet.
We may already be in a mild recession:
Microsoft, Facebook, Google, and Apple have all reduced hiring. Microsoft had a small (<1%) layoff. Facebook is considering a larger one.
Whether we get a mild recession or a severe one, nobody knows. So these companies are prudently reducing their risk.
It's a time to evaluate your personal risk. Unemployment remains low; if you need a job, you can still get one. Don't be looking for a chair if the music stops.
And be glad you work for Jim Goodnight and not Mark Zuckerberg.
A recession is two quarters of declining GDP. GDP declined in the first quarter, but one bad quarter is not enough to affect SAS.
Layoffs have begun at the startups, but startups are inherently risky. At this time, the Tech sector job market is still strong, so most of these folks will find jobs:
Of greater concern is layoffs at large stable companies:
The Fed is trying to create a mild recession that stops inflation -- without accidentally creating a brutal recession that damages a lot of companies. It's a difficult task, and we all hope they succeed.
Everyone will be affected if a recession hits