Why Silicon Valley Didn’t Anticipate the COVID Comedown | PRO Insight

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Big Tech is now laying off workers after mistakenly predicting coronavirus surges would persist

Big Tech companies
Big Tech companies didn't anticipate that COVID behaviors would return to normal. (Getty, TheWrap)

One by one, the tech CEOs apologized. They had failed to anticipate people’s behavior would return to normal once COVID restrictions lifted. So their projections for growth — in streaming, ecommerce and the like — were way off. With expenses mounting and growth stagnating, they’d need to cut costs dramatically. Mass layoffs were coming.

“This did not play out the way I expected,” said Meta CEO Mark Zuckerberg.

“That bet didn’t pay off,” said Shopify CEO Tobi Lütke.

That Big Tech completely missed its COVID surge ending — something that seemed obvious — is astonishing, but it’s more than a simple oversight. These companies understood their lockdown-augmented growth curves might not last forever, but they planned as if they would.