This Is What Happens to Silicon Valley in a Downturn

Odd Lots

Bloomberg

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4.4 • 1.6K Ratings

🗓️ 28 November 2022

⏱️ 47 minutes

🔗️ Recording | iTunes | RSS

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Summary

The US economy may not be in a recession, but Silicon Valley, which had a mega-boom throughout the 2010s, is in a downturn. Tech stocks have tanked and almost every day there are new reports about industry layoffs. So what happens next? What happens to its unique corporate culture? What happens to management and employees? On this episode, we speak with Margaret O'Mara, a professor at the University of Washington and the author of the book The Code: Silicon Valley and the Remaking of America. We talk about the history of Silicon Valley's upside-down moments and how the industries that have dominated the region have changed over time, particularly as government money comes in and out of the picture.

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1:03.6	Subscribed to Bloomberg Daybreak, U.S. Edition today on Apple, Spotify, Bloomberg.com,
1:09.2	or wherever you get your podcasts.
1:21.7	Hello and welcome to another episode of the AdLots podcast. I'm Joe Wyzenthal.
1:27.1	And I'm Tracy Alloway. Tracy, you know, I don't know what's going on right now with the broader.
1:33.9	Sorry, I'll let you finish. Well, there are so many different ways that sentence could have gone.
1:39.2	We could start every episode with I don't know what's going on. Anyway, I don't know what's going
1:43.9	on right now with the broader American economy, but I do sense that the tech industry Silicon Valley
1:50.8	isn't a real downturn. It seems so. I shouldn't laugh because obviously for a lot of people,
1:56.4	this is very, very serious. We've had a number of tech companies coming out and saying that
2:01.2	they're going to be firing literally thousands of people in this downturn. And what's kind of
2:07.2	remarkable about it is this is something a lot of people were kind of expecting. You know,
2:13.8	these are all growth companies. They tend to do very, very well during periods of low interest rates.
2:19.6	Once rates start going up, we see the pressures sort of added on. And then we see these cyclical
	...

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