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The article might be over-arguing that layoffs are always bad, but it definitely raises responses to the idea that layoffs are always a good tactic: > Layoffs
by Apocryphon 4y ago
The article might be over-arguing that layoffs are always bad, but it definitely raises responses to the idea that layoffs are always a good tactic:
> Layoffs often do not cut costs, as there are many instances of laid-off employees being hired back as contractors, with companies paying the contracting firm. [...] Companies sometimes lay off people that they have just recruited – oftentimes with paid recruitment bonuses. When the economy turns back in the next 12, 14, or 18 months, they will go back to the market and compete with the same companies to hire talent. They are basically buying labor at a high price and selling low. Not the best decision.
Certainly it's a case-by-case basis, but I definitely remember companies such as Patreon doing layoffs in early 2020, only to be hiring again a few months later in the year.