CNBC gym crme On Thursday he said he expects a “technological exodus” from California in the future, one of the drivers of which is the dissatisfaction of tech leaders with their employees.
Cramer, who spent the week in San Francisco, said he’s been hearing that “many CEOs here have done it with young workers telling them what to do and when and where to work.”
“They are tired of the San Francisco employees they think are full of spoiled nitwits that are there one day and gone the next,” Cramer said. He did not name these officers, whom he said he spoke to off-air.,
,mad Money“This kind of frustration could benefit other parts of the country,” the host said, with tech firms “moving to areas of the country where they can hire talented people for less money — people who don’t have business opportunities.” There will be greater loyalty and accountability. CEOs, if only because they would have fewer options to jump ship.”
However, Cramer noted that upper management’s issues with their employees aren’t the only reason technology companies plan to move away from Silicon Valley. Real estate is heavily priced in the San Francisco metro area, Cramer pointed out, adding that “Atlanta has mentioned several times, Austin is always in the mix, and of course Florida” as potential places to relocate. .
Cramer also said he had heard there would be layoffs in the tech sector, which have rivaled since the mid-1990s when the dot-com bubble burst. At the time, highly speculative Internet stocks helped propel it. Nasdaq Up more than 500% from 1995 until ending March 2000. The tech-dominated index was trading above 5,000, then fell nearly 80% in October 2002 to a multi-decade low of 1,108.
With Tech Shares Falling on Thursday rest market, The Nasdaq has been caught in a terrible bear market, defined by a decline of 20% or more from prior highs. In fact, as of Thursday’s close, the index was down more than 25% from its most recent all-time high in November 2021.
“Remember, the industry likes to pay people with stock options,” Cramer said. “But it’s not an enticing form of compensation when the stock is crushed.”