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The true reason why layoffs keep happening as per an ex-Amazon leader
- deleted 3y ago[deleted]
- chiefalchemist 3y agoThis makes sense in the context of ya can't hire a fraction of a person. That is, a manager has a need or sees one approaching so they hire. But it takes time for that person to reach full capacity (in response to growth). On average the new hires will be at 50%. If the company is large enough and the anticipation of grow high enough there will always be more head count than there is actual work for, and it could be significant. The point is, hiring in anticipation of growth isn't an expense. It's an investment, in the future. Now if your forecast chanfes and you are anticipating the future isn't so bright then that investment is an expense and it likely needs to he cut. It's not that these people shouldn't have been hired in the first place. It's that you can't hire a fraction of a person, and then the forecast changes.
- breckenedge 3y agoTLDR: Mangers want to get promoted. Doing so requires managing a larger headcount. And companies don’t do enough to reward efficient teams.