Thursday, October 22, 2015

Tech bubble bursts: Numerous redundancies in technology companies – German Economic News

The investment in technology companies were high again this year. But the warnings after a blistering are getting louder. Zahrlreich companies put employees on the street.

The technology bubble threatens to burst. (Photo: AP).

The growing number of start-ups has given the technology industry in recent months considerable upswing In addition to the long-established companies like Microsoft and Hewlett Packard These include established younger companies such as Facebook and Twitter and even start-ups as Flipagram. But in all of these corporate structures occurred despite massive investments in the technology sector last layoffs.

In addition to job cuts in the United States Hewlett Packard should also think about up to 1,500 jobs in Germany to other companies outsource. Total is talk of 30,000 jobs to be lost. Microsoft announced that it would cancel up to 7,800 points. With LivingSocial INC. to 20 percent of employees dropped. But even companies like Flipagram, Globalfoundries and Zomato have announced cuts. Just last week, shared Twitter, its own workforce to shrink by eight per cent. For years, it has not just Twitter, to be in the black. So far, the investors had not held by the company.

“There is a general feeling that the financing market for the technology industry now turns into a tougher phase”, quotes the Business Insider Chi-Hua Chien from Goodwater Capital. Either are the companies that just cut jobs, clever enough to reduce their costs of an impending crisis. Or the bubble was already underway. In any case, Chien expects further layoffs. “I have a feeling that there are now more people than ever before are working for companies in Silicon Valley who do not make money,” Bill Gurley said of benchmark in a discussion on the Vanity Fair Summit.

This year, according to the WSJ attributed only 14 percent of American IPOs on technology companies . This is the lowest share since the mid-90s. Late last week, were 11 of the 49 funded with venture capital US technology companies who had made their IPO since 2014 below the level they had reached in their latest collection of funds.

One problem is . while the sheer number of technology companies So there alone in the Silicon Valley an estimated 140 Unicorns – private companies with an estimated value of more than one billion dollars. Pentacorns (5 billion dollars) and Decacorns ($ 10 billion) are also available in numerous editions, as Forbes.


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