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
> boosting numbers before a certain reporting season?
Yes, pretty much. Publicly-traded companies in fact refer to this as “layoff season,” because it’s a normal thing. They fire a bunch of employees before their yearly reports are due because it lowers their operational costs, which makes them look more attractive to investors. After they get a new round of investment, they’ll go and hire new workers to replace the ones they fired.
CEOs are giant pussies and don’t think for themselves or do anything novel.
Perfect example: one CEO decides return to office or else and every other dipshit CEO does it.
This is no different.
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