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
In addition to what other people have said, if multiple companies layoff hundreds of thousands of employees in a short time frame, these people are gonna saturate the jobs left in the market and start a race to the bottom in salaries where employers can lower the market’s salaries for some professions turning it into a employer favored market.
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