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> Especially if the company you’re working for is not actually struggling economically right now. If you work for Google, say, you must be thinking, “What is it

> Especially if the company you’re working for is not actually struggling economically right now. If you work for Google, say, you must be thinking, “What is it about the coming recession that makes a company that’s doing just fine institute broad layoffs for the first time in its 23-year history?” People commenting about the layoffs keep citing the financial health of the companies that are doing the layoffs as evidence that there is some ulterior motive, but this misses why companies perform layoffs. Companies don't choose to hire when they are profitable and layoff when they are losing money. As an example, most tech companies spend their early years losing money while growing hiring and no one assumes they have an ulterior motive. The reason companies perform layoffs is that they believe the labor they are buying is more expensive than the profits from the products they were planning to build with those employees. If they think consumer demand is going to drop, then new investment opportunities won't be as lucrative and they thought they were. Yes, it sucks for the employees and yes we want corporate leaders to have better economic foresight so this doesn't happen. But you don't need some elaborate Marxist theory of class warfare to explain why this is happening, and it does not represent monopsony collusion.

vineyardmike 4y ago
> the labor they are buying is more expensive than the profits from the products they were planning to build with those employees Thats it. Thats where the Marxism enters. Most of these companies (or the bigger ones) aren't losing money with these new products, they were just losing profit margin because its profitable but not as profitable. They chose to have fatter profits over your employment and wellbeing. WRT your employment, you’re not their top priority, so they shouldn’t be yours. Also, FWIW big companies lobby to keep healthcare employment tied, not because they love paying for healthcare, but because they love the forced loyalty - it makes quitting/being fired way more risky. Companies expect 2 weeks notice on quitting, but will lay you off overnight via email. Companies will ask you your salary expectation to underpay you, but won't tell you their salary range up front (except in California where it is now law to do so). The imbalance is crazy.
- Gigachad 4y ago
  If you are working at Google, your well-being is already very good. Ride the highs and the lows, start saving some of that huge pay and you will be able to coast along while looking for new jobs. Otherwise you could just work in government and get paid bellow average but be stable in all economic environments.
- AnimalMuppet 4y ago
  > Most of these companies (or the bigger ones) aren't losing money with these new products, they were just losing profit margin because its profitable but not as profitable. Maybe, if you consider the company as a whole. If you consider the product line, no, because the product line isn't earning revenue yet. It's a bet on the future.

vineyardmike 4y ago

> the labor they are buying is more expensive than the profits from the products they were planning to build with those employees Thats it. Thats where the Marxism enters. Most of these companies (or the bigger ones) aren't losing money with these new products, they were just losing profit margin because its profitable but not as profitable. They chose to have fatter profits over your employment and wellbeing. WRT your employment, you’re not their top priority, so they shouldn’t be yours. Also, FWIW big companies lobby to keep healthcare employment tied, not because they love paying for healthcare, but because they love the forced loyalty - it makes quitting/being fired way more risky. Companies expect 2 weeks notice on quitting, but will lay you off overnight via email. Companies will ask you your salary expectation to underpay you, but won't tell you their salary range up front (except in California where it is now law to do so). The imbalance is crazy.

Gigachad 4y ago
If you are working at Google, your well-being is already very good. Ride the highs and the lows, start saving some of that huge pay and you will be able to coast along while looking for new jobs. Otherwise you could just work in government and get paid bellow average but be stable in all economic environments.
AnimalMuppet 4y ago
> Most of these companies (or the bigger ones) aren't losing money with these new products, they were just losing profit margin because its profitable but not as profitable. Maybe, if you consider the company as a whole. If you consider the product line, no, because the product line isn't earning revenue yet. It's a bet on the future.