Big Tech

Big Tech’s Job Cuts Spur Rallies Even as an Economic Slowdown Looms

  • Amazon, Meta and Alphabet have all announced reductions
  • Tech stocks have largely seen positive reactions to cuts

The Google campus in Mountain View, California.

Photographer: David Paul Morris/Bloomberg
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Massive job cuts in Silicon Valley are bringing some relief to investors after a year-long stock selloff, as companies indicate they’re focused on bolstering their profits heading into a key earnings reporting season.

Big US tech companies including Alphabet Inc. and Salesforce Inc. experienced, on average, a 5.6% bump in their stock price this month in the session following an announcement of job cuts, according to data compiled by Bloomberg.