#AskPeshev 177: Weathering The Storm

#AskPeshev 177: Weathering The Storm

January 25, 2023

When was the last time you combed through your business’s budget looking for items to cut?For many tech giants, budget cuts meant layoffs. As of January 2023, the following tech giants laid off a percentage of their workforce:

  • Google (Alphabet) layoffs: 6% 

  • Microsoft layoffs: 4-5% 

  • Amazon layoffs: 1-2% 

And just recently, Spotify layoffs: 6% When will it stop? Truth be told, the economic downturn is far from ending soon.The year 2023 will present unique challenges to both business leaders and employees in navigating the year after nearly 3 turbulent years of change.BUT—here's the thing: Great leaders are more likely to sustain a tough economic situation. It’s impossible to guarantee full resilience but most true leaders out there focus on leadership-derived business skills that can weather the recession storm.Do not miss this week's featured articles. Let's put up a good fight by arming ourselves with skills and weaponizing our learnings. 🚀 Mario My Take TRUiC Startup Savant: How to Thrive in an Inflationary EconomyInflation is at a 40-year high, and although it dipped a bit in recent months, it is still a lofty 7+ percent. Unprepared businesses often sink in an inflationary era; however, there are savvy business owners who knew all along that the global economy is cyclical. It has ups and downs — periods of rampant inflation and periods of price stability, occasionally even deflation (notably in 2009 with the Great Recession), where prices go into freefall.Read more…

 Business Strategy 

  • DOW: 33,733 (+0.31%)

  • NASDAQ: 11,34 (-0.27%)

  • S&P: 4,016 (-0.08%)

*Economy numbers as of January 25th*

Let's be honest, 2022 has not been a fun year for tech companies. Between the massive layoffs that have hit virtually every business in the country and the rising rate of inflation, it's safe to assume that economic conditions are likely contributing to the sleepless nights of employees and employers alike.Read more… Management 

  • Organizations with a PMO: 71%

  • PMs/ Scrum Masters that report to the PMO: 54%

  • Organizations using agile: 65%

* Statistics taken from PMSolutions' "The State of the Project Management Office 2022" research *Forbes: Nine Factors To Consider When Choosing The Perfect Project Management ToolWith the right project management tool, you can save you and your team valuable time and money as well as streamline your workflow and reduce stress. Having all your project information in one place ensures deadlines and details aren’t missed, and you’re better able to keep track of who is working on what and what roadblocks they may be facing.Read more… Recruitment 

  • Tech Companies with layoffs since 2023: 185

  • Employees laid off in 2023: 57,601

  • Employees laid off in Q1 2023: 58,036

* Statistic taken from layoffs.fyi as of January 25th *Forbes: How Recruiters And Hiring Teams Can Prepare For A Tighter Job MarketBy the end of 2022, the labor market was at odds with signs of a slowing economy. While inflation rose, hiring managers enjoyed a promising pool of newly available talent. Though the stability of the labor market this year remains uncertain, some recruitment teams are preparing for a tightening market.Read more…

 Breaking News 🚨

  • Adult Swim cuts ties with Justin Roiland, star and co-creator with "Rick and Morty", as he faces felony domestic violence charges

  • US Department of Justice files second antitrust lawsuit against Google, seeks to break up ad business

  • Classified documents found at Pence's Indiana home

 Marketing 

  • TSLA 1 year change: -53.00%

  • META 1 year change: -52.31%

  • AMZN 1 year change: -31.20%

*Statistics taken as of January 25th*

Last year’s record inflation and the ongoing economic uncertainty have led to speculations of a possible recession. As such, many industries and business leaders are moving ahead with caution. But how do marketers look at this scenario? RRD recently conducted a study to gain some insights.

 Sales 

  • CPI December 2022: -0.1%

  • U.S. Import Price Index December 2022: +0.4%

  • U.S. Export Price Index December 2022: -2.6%

*Statistics taken U.S. Bureau of Labor Statistics *

We’ve been through a few rocky years in the retail industry, both online and offline—Covid-19, issues with the supply chain and more have kept leaders fretting over business. This year isn't starting off much better, unfortunately. Issues currently impacting the retail industry include the "cost of living crisis," increasing cost of energy bills, strikes and protests around the world, and a number of countries still in recession worldwide.

 Featured Story of the Week 

Companies of all sizes are scrambling for resources... and guidance. The Fed is pointing in all directions simultaneously. 🤯 The market is shifting up and down all the time. Interest rates? CPI? PPI? Unemployment rate? Tenure rates? Tech layoffs going through the roof. 📉 In any case—conservative planning and projecting for a slower year—or even a scaledown, is the smart way to go. 📉 Here's how I approach it.