Thread by @KailashConcepts

1/7 This was a FASCINATING article from @FortuneMagazine

Overconfident #tech #CEOs have overpaid for ‘box tickers’ and ‘taskmasters.’ Here’s why the real ‘creators’ will survive the mass #layoffs

yahoo.com/entertainment/…

2/7 "$CRM CEO Marc #Benioff and $META CEO Mark #Zuckerberg have admitted that they hired too many employees under the assumption that the growth their #sector experienced during the pandemic would continue."

3/7 "In periods of growth, the errors made by overconfident #CEOs are often buffered by the upswing of the economic cycle. In contrast, during upswings, underconfident CEOs lose out because they stay hamstrung with #risk aversion."

5/7 "Things get difficult for the overconfident CEO in periods of economic #decline when they are publicly listed. Raising additional capital for new ideas is constrained as #investors look for safe options to safeguard their finances, and #debt becomes more expensive."

5/7 "#Shareholders expect cost-cutting during periods of economic decline. CEOs cater to this psychological expectation in an attempt to preserve their companies’ #share prices."

6/7 "However, top #technology companies also seem to be trying to take advantage of the #market uncertainty to reorganize their employee mix to become more allocatively efficient over the medium term–and moving to hire more "creators.”

7/7 In Out with the Old In with the New: What Chat GPT Means for You, we state, "with #tech under pressure to earn profits to justify exorbitant valuations predicated on actual $ profits (ex SBC), they are all racing into each-others’ core competencies."

kailashconcepts.com/out-with-the-o…