What's behind all the layoffs at tech giants? Simple, it is part of the rhythm of their business. That's right, it is part of the plan.
1. All these companies laying off excess workers now were *knowingly* overhiring during boom times.
Why would they do that? ...
1. All these companies laying off excess workers now were *knowingly* overhiring during boom times.
Why would they do that? ...
2. During boom times, companies overhire *on purpose* because a) the stock market rewards hiring sprees (the company MUST be on to something big!), and b) they want to hoard talent to keep it away from competitors.
3. This last point is key. When everyone is hiring fast, you can't afford to dally. Drop your bar and overhire hoping that hidden in that mass of people you don't really need are some top performers. The point is to get to them fast before competitors do. It's an arms race.
4. When every company is overhiring, a bubble develops. Excitement builds. Stocks soar (paying for all that overhiring!). Meanwhile, companies are already planning internally for the next downturn because they know it's coming.
5. Companies know who they want to get rid of long in advance of a downturn, but they wait until those bad times come in order to mask the layoff in a "poor, poor us ... look at us suffering so in this terrible economy ... we feel so very bad!"
6. They also play games to mask the targeting of specific people. They lay off by product and team, but they already know which people will get new jobs elsewhere and which ones won't.
7. This cycle is as old as time. The fact that real people with real lives are the ones who suffer isn't just collateral damage. It's part of their calculation. Corporations don't care but need to pretend to care so they can restart the whole cycle when the downturn ends.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
