The New York TimesThe New York Times

For tech companies, years of easy money yield to hard times

By David Streitfeld

24 Jan 2023 · 6 min read

Editor's Note

Massive layoffs in the tech industry have been making news every other day. The New York Times looks at how interest rate hikes have forced companies to change their ambitions and hiring practices.

Eighteen months ago, online used-car retailer Carvana had such great prospects that it was worth $80 billion. Now, it is valued at less than $1.5 billion, a 98% plunge, and is struggling to survive.

Many other tech companies are also seeing their fortunes reverse and their dreams dim. They are shedding employees, cutting back, watching their financial valuations shrivel — even as the larger economy chugs along with a low unemployment rate and a 3.2% annualized growth rate in the third quarter.

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