I know lay-offs seem to be happening a lot, especially in tech right now, and can happen at any point – but just this month there has been Microsoft, Discord, Twitch, Google and RIOT lay-offs to name a few, and I’m sure many others.
Unless it’s just coincidence, why do these lay-off announcements seem to be like a chain reaction? I’m guessing that there must be economical reasons as to why, such as boosting numbers before a certain reporting season? Or is it just to stay competitive in terms of profit margins?
In: Economics
If enough people are out of work at the same time it will depress the local wage market so when they start hiring again it will be cheaper.
Cut headcount to make the share price look better at the end of the quarter then Re-hire some of them (or staff sacked by other companies) at (effectively) lower wages.
Keep running the hire and fire cycle while taking an ever increasing cut of the profit that these people provide while pushing them to work harder or get laid off.
Toxicity is intentional, the cruelty is intentional, they would render you down for glue if it was profitable.
Latest Answers