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>Sure and laying off 100% of staff might be better for society if you can replace the jobs with higher productivity ones somewhere else Maybe, if you ignore th

• vasco 3y ago
  The costs depend on a lot of variables we're assuming here, they might be negligible. In some european countries where I live (not sure how it works in the US) if you get fired you'll get several months up to ~2 years - depends on the country - of subsidies while you look for jobs. Of course there will be more stress during the months you are switching but economically, having big companies with old business models, syphoning subsidies and tax breaks and all manner of life support measures just to stay alive... In many cases you'd spend less by letting the company go bankrupt and supporting the employees directly in their transition. And once they come back to the workforce, every month of increased productivity might be "making it back" much faster.