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I think a big factor in these layoffs is to signal the market that the companies are "cutting fat". The market gets the signal, stock price goes up and the boar

I think a big factor in these layoffs is to signal the market that the companies are "cutting fat". The market gets the signal, stock price goes up and the board of directors eases the pressure on the CEO. After this the company can resume business as usual, which will require quietly hiring to fill the needed positions.

civicsquid 4y ago
At least in the case of Meta / Facebook, I don't think there is any pressure on the CEO. Zuckerberg owns controlling interest over the company to the point where the board of directors are essentially advisory. I believe I read that he owns over 75% of Class B shares, for which he gets 10 votes for every 1 vote that a regular Class A voter gets. That's a lot of power. This has allowed the company to ignore Wall Street in the past, which makes me think he's not suddenly concerned about Wall Street now. Whatever Zuck does is really his choice and responsibility.