Polygon's Latest Announcement Signals a Rare Buying Opportunity
During times of economic contraction companies are forced to reevaluate their costs and spending. In some instances, laying off employees is one of the first things businesses do in order to trim some fat and maintain profitability during less than favorable economic conditions.
Without inflation or interest rates coming down, companies in every sector are battening down the hatches and preparing for a tedious road back to growth as the prospect of a healthier economy seems to dwindle. We are seeing this today in nearly every industry as inflation, rising interest rates, and increased commodity prices force executives to make tough decisions. Snapchat (NYSE: SNAP) recently announced they will be cutting ties with 20% of their workforce. Peloton (NASDAQ: PTON) followed suit, removing 20% of their staff as well. Even electric vehicle maker Rivian (NASDAQ: RIVN) fired 6% of their employees to mitigate rising costs.
Although some believe cryptocurrencies and blockchains are insulated from economic downturns, companies in this burgeoning sector are following the same path as more traditional counterparts. Cryptocurrency exchange Coinbase (NASDAQ: COIN) sent ripples through the sector when it announced they would be parting ways with nearly 18% of their employees. Just a few weeks later, OpenSea, the most popular non-fungible token (NFT) marketplace, let go of 20% of its employees.
Source Fool.com
