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I get the impression that like everything else, executives are strongly influenced by herd psychology. They see a few headlines and then that gives them the ide
by ilaksh 3y ago
I get the impression that like everything else, executives are strongly influenced by herd psychology. They see a few headlines and then that gives them the idea that they will be able to copy the other companies and reduce costs. And no one will be able to accuse them of doing the wrong thing if everyone else was doing it. Whereas if sales continue to be poor and they are one of a minority of companies that did not do layoffs, then the executive gets blamed for lack of profits due to inaction.
- cqqxo4zV46cp 3y agoSo, in short, executives are people too.
- williamcotton 3y agoPerhaps people that should be managing a McDonalds and not a company whose main assets are software and IT systems.
- herval 3y agomost of the people in powerful position at big companies (including the FAANG) are there because they got there early - not because they're good. That includes a ton of management & ICs. It's eye-opening, once you see it
- paxys 3y agoIt's also herd psychology (and greed) on the part of investors. If a company does layoffs its competitors' investors go "if they can survive and increase profits after a 10% layoff why can't we?" And executives can't really answer this because they know they can lay a lot of people off without immediate impact to the business. It's no secret that every tech company is way overstaffed.
- nothercastle 3y agoIf your competition can get away with 10% lower quality-of service so can you. Almost nobody competes on quality so it’s a race to the bottom