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That’s just an excuse the CEO’s are using to avoid blame. They over-hired during 2020 and 2021 “because everyone was doing it” and now they realize they have 10

That’s just an excuse the CEO’s are using to avoid blame. They over-hired during 2020 and 2021 “because everyone was doing it” and now they realize they have 10’s of thousands of employees with nothing to do and huge salaries so it makes no sense to keep them.

evantbyrne 3y ago
I can't speak for Meta specifically, but mass layoffs don't generally correlate with worker productivity. At the end of the day it is all about CEOs making shareholders happy so they get rewarded with juicy bonuses. Shareholders see their stonks going down so they want cost cutting. People making decisions are not always aligned with the long-term interests of the companies they manage.
- specialist 3y ago
  Further Yes and: Cutting costs, versus investing, means the PHBs have decided the ride is over. In other words, the combo of layoffs and corporate buybacks is about profit taking (while they can). Every business, market, etc, has a lifecycle. Social media, and Meta in particular, has definitely entered the Computer Associates phase of its lifecycle. So now it's time to cut to the bone, extract as much blood as possible. Such is life. It was a fun grift while it lasted. Hopefully, adjacent malignancies such as digital advertising and freemium will plateau as well. That'll be a relief. They can join informercials, shopping networks, and supplements in the backwaters of human culture.
- maxlamb 3y ago
  If it were as simple as “layoffs/cost cutting make stock go up” then CEO’s would have never had hiring surge during Covid. The CEO’s job is always to maximize long term profits. Layoffs make stock go up only when it’s clear profits won’t change much with the layoffs. And if layoffs won’t decrease profits, why were these employees there in the first place?
  - skinnymuch 3y ago
    During market growth stages, laying off would be something that would be a red flag. You only focused on a small part of the person’s comment. The comment also said when stock is going down, lay offs help. They likely aren’t talking in absolutes anyway Were there hiring surges for companies whose valuations were not going up?
  - vinyl7 3y ago
    Maximizing long term profits hasnt been a strategy for at least 15 years now. Its all about infinite growth at any cost

evantbyrne 3y ago

I can't speak for Meta specifically, but mass layoffs don't generally correlate with worker productivity. At the end of the day it is all about CEOs making shareholders happy so they get rewarded with juicy bonuses. Shareholders see their stonks going down so they want cost cutting. People making decisions are not always aligned with the long-term interests of the companies they manage.

specialist 3y ago
Further Yes and: Cutting costs, versus investing, means the PHBs have decided the ride is over. In other words, the combo of layoffs and corporate buybacks is about profit taking (while they can). Every business, market, etc, has a lifecycle. Social media, and Meta in particular, has definitely entered the Computer Associates phase of its lifecycle. So now it's time to cut to the bone, extract as much blood as possible. Such is life. It was a fun grift while it lasted. Hopefully, adjacent malignancies such as digital advertising and freemium will plateau as well. That'll be a relief. They can join informercials, shopping networks, and supplements in the backwaters of human culture.
maxlamb 3y ago
If it were as simple as “layoffs/cost cutting make stock go up” then CEO’s would have never had hiring surge during Covid. The CEO’s job is always to maximize long term profits. Layoffs make stock go up only when it’s clear profits won’t change much with the layoffs. And if layoffs won’t decrease profits, why were these employees there in the first place?
- skinnymuch 3y ago
  During market growth stages, laying off would be something that would be a red flag. You only focused on a small part of the person’s comment. The comment also said when stock is going down, lay offs help. They likely aren’t talking in absolutes anyway Were there hiring surges for companies whose valuations were not going up?
- vinyl7 3y ago
  Maximizing long term profits hasnt been a strategy for at least 15 years now. Its all about infinite growth at any cost