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
Most of them operate on the same financial calendar, so they generally re-evaluate their staffing and expenses around the same time every quarter.
And yes there’s definitely some herd mentality at play, they see one company make the unpopular leap first and decide now’s the time to announce their own layoffs so they can all just be together and blame it on market forces and no company gets singled out for media anger.
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