Risk, returns & timeframes illustration
2 min read
February 1, 2023
by
Regan Pearson

Big tech’s back to work blues

While Big Tech exchanged new year messages to staff for final pay slips to try tighten belts for a possible recession, it’s not all doom and gloom in 2023. Walmart lifted their minimum wage and the S&P 500 bounced up 6.5%. What other light could be peeping through the cracks?
2 min read
February 1, 2023
by
Regan Pearson

Big tech’s back to work blues

While Big Tech exchanged new year messages to staff for final pay slips to try tighten belts for a possible recession, it’s not all doom and gloom in 2023. Walmart lifted their minimum wage and the S&P 500 bounced up 6.5%. What other light could be peeping through the cracks?
2 min read
February 1, 2023
by
Regan Pearson

Big tech’s back to work blues

While Big Tech exchanged new year messages to staff for final pay slips to try tighten belts for a possible recession, it’s not all doom and gloom in 2023. Walmart lifted their minimum wage and the S&P 500 bounced up 6.5%. What other light could be peeping through the cracks?
Table of contents
Getting Started Investing course
Free Getting Started Course
Take your first, or next, step to becoming a confident investor with Hatch's free online course – just 10 minutes a day, for 10 days.
The Fry up logo with fried egg
Weekly news from Wall St
Subscribe to The Fry Up - your weekly sizzle of headline-grabbing share market news. Read by 60,000 Kiwis to help them take charge of their investing journey.

Summer is s’posed to be our time to recharge with good vibes, good beer and enough solar energy to run a Tesla (TSLA) semi-truck. But if you’ve spent the last few weeks dodging raindrops, missing cancelled events or worrying about a potential beermageddon, the motivation to jump back into the same old work grind might be… low. Even Jacinda Ardern came back from her summer break, took one look at her inbox and thought ‘yeah, nah’. 🙅‍♀️

But before you start rage applying for new jobs this year, remember you won’t be alone. ✍️ Since the start of 2023 a growing number of big tech companies, including giants Google (GOOGL), Meta (META) and Microsoft (MSFT), have resolved to cut costs and lay off tens-of-thousands of staff. 🫵 Why so many jobs on the line? Many big tech companies binged on new staff during the Covid pandemic as demand boomed. However, with growth now slowing and threats of a recession on the horizon, companies have started to tighten their belts. It’s the big tech version of getting your hair done less to save money. So long fun blonde summer highlights! Helloooo Recession Brunette.

There are some rays of light shining through, though. While big tech’s busy killing off the ‘day in the life’ TikTok genre, retail giant Walmart (WMT) is boosting the pay for minimum wage employees to US$14 per hour, around a 17% increase. 🤑 The threat of recession isn’t holding back the S&P 500 index either. The Vanguard 500 Index Fund ETF (VOO) has bounced 6.5% so far in 2023. And there has been no Slacking over at enterprise software company Salesforce (CRM). The company has joined the list in laying off 10% of their workforce. But the involvement of a pair of activist investors has boosted the investor hopes that the company could see positive changes in the future, all of which is helping to push the Salesforce share price up 22% so far this year. 🌞

Regan Pearson
Finance writer
Linkedin

We’re not financial advisors and Hatch news is for your information only. However dazzling our writing, none of it is a recommendation to invest in any of the companies or funds mentioned. If you want support before making any investment decisions, consider seeking financial advice from a licensed provider. We’ve done our best to ensure all information is current when we pushed ‘publish’ on this article. And of course, with investing, your money isn’t guaranteed to grow and there’s always a risk you might lose money.

Join the Kiwis who are hatching their tomorrow and have invested more than $1 billion with Hatch.

Explore other articles
Tax
Money
Economy
Investing

More recent news articles

Recent learn articles

7 min read
Mar 26, 2024

Reddit IPO pops 48% then drops, then pops 31%

From meme stock to market debut, Reddit’s IPO bolted out of the gates after landing on the NYSE. Reddit stock has jumped 31% since listing, ending the first days of going public reaching nearly US$10 billion market cap. But how does Reddit make money, and why are some Redditors unhappy about proposed AI licensing?
Read more
7 min read
Mar 19, 2024

Pilots on ‘high alert’; Boeing stock nosedives nearly 30%

Not even Boeing’s defence operations can stop the aircraft maker from facing a wave of scrutiny. Legal issues are costing billions, their stock keeps dropping and now pilots don’t feel safe. But Boeing is the world’s fifth largest defence company. So what happened to ‘If it’s not Boeing, I’m not going?'
Read more
6 min read
Mar 12, 2024

Abercrombie & Fitch soars 355% eclipsing Nvidia

While all eyes pivots towards AI, iconic US fashion brand Abercrombie & Fitch has surged ahead of even Nvidia. Steady cotton pricing and low transportation costs have contributed, but surprise behaviour by Gen Z has put them head and shoulders above the rest. In 2024, what could the combination of the youth consumer and AI bring?
Read more

Related news articles

More recent learn articles

No items found.

Recent news articles

More recent learn articles

7 min read
Mar 26, 2024

Reddit IPO pops 48% then drops, then pops 31%

From meme stock to market debut, Reddit’s IPO bolted out of the gates after landing on the NYSE. Reddit stock has jumped 31% since listing, ending the first days of going public reaching nearly US$10 billion market cap. But how does Reddit make money, and why are some Redditors unhappy about proposed AI licensing?
Read more
7 min read
Mar 19, 2024

Pilots on ‘high alert’; Boeing stock nosedives nearly 30%

Not even Boeing’s defence operations can stop the aircraft maker from facing a wave of scrutiny. Legal issues are costing billions, their stock keeps dropping and now pilots don’t feel safe. But Boeing is the world’s fifth largest defence company. So what happened to ‘If it’s not Boeing, I’m not going?'
Read more
6 min read
Mar 12, 2024

Abercrombie & Fitch soars 355% eclipsing Nvidia

While all eyes pivots towards AI, iconic US fashion brand Abercrombie & Fitch has surged ahead of even Nvidia. Steady cotton pricing and low transportation costs have contributed, but surprise behaviour by Gen Z has put them head and shoulders above the rest. In 2024, what could the combination of the youth consumer and AI bring?
Read more