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The sharply rising interest rates are a problem if you have a short runway that makes you reliant on debt or investor money, in which case yes you very well may need to cut costs just to keep the lights on.

But if you're Microsoft or Google? You're profitable. You're bringing in money hand over fist. Technically the high interest rates might benefit you because now you have more options of what to do with that giant pile of cash: you can lend it out and get a decent return!

So high interest rates maybe do justify layoffs in some cases. And even perhaps for GitHub specifically, though I'm not sure I understand the complex dynamics of how it generates value for Microsoft anyway...



This thread is about Gitlab, not GitHub. AFAIK Microsoft doesn't own them (I hope).


Yeah, the "GitHub to lay off 10%" thread is over here: https://news.ycombinator.com/item?id=34726735


It's Gitlab, not GitHub tho.


:facepalm: Ah yes, thank you for the correction, I definitely misread that. I also don't know Gitlab's specific financial situation, so perhaps the general point still stands haha.




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