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As a native upstate new yorker, I root for the success of GlobalFoundries. But it was exceedingly frustrating to me that they went and did layoffs in 2022 despi
by capital_guy 3y ago
As a native upstate new yorker, I root for the success of GlobalFoundries. But it was exceedingly frustrating to me that they went and did layoffs in 2022 despite their booming revenues and incoming subsidies [0].
It seems to me there should be some kind of rule to prevent these layoffs for companies that receive billions of federal dollars.
[0] - https://vtdigger.org/2022/12/01/globalfoundries-to-cut-up-to-800-jobs-worldwide/ https://vtdigger.org/2022/12/01/globalfoundries-to-cut-up-to...
- nos4A2 3y agoSuch a rule can have the opposite effect though, a company may choose to hire/grow more conservatively if it is subject to a condition that it cannot layoff.
- viscountchocula 3y agoIsn't their layoff a tacit admission that they should have grown more slowly, though?
- epistasis 3y agoWhen the Fed raises interest rates, it slams on everyone's brakes. Should GlobalFoundries somehow predicted the macro environment, better than everyone else, and followed their gut on reading macro tea leaves and pre-anticipated what the Fed would do? Ideally, yes, they would know the future, but in reality the best laid plans must change to meet reality, as current events always has surprises that can not be 100% derisked.
- gizmo 3y agoLayoffs are necessary from time to time to keep org chart bloat down. It's not just about the money. I don't mean this in a callous way and I understand that layoffs are painful for those getting fired. But for a business to thrive it has to make the correct strategic choices.
- capital_guy 3y agoI guess I am too humanist to believe this sort of rhetoric is not callous. I know people who lost their jobs in that layoff. It hurts a lot of families. Companies should think about organizational bloat during hiring. If their revenues are soaring and they’re getting free money from the feds, they should shuffle the people they have into more efficient roles. I know there are fiscal reasons why this kind of thing happens. But workers in the US do not have the protections to balance it out. Healthcare, unemployment insurance, etc are not sufficiently strong to keep people afloat for the sake of “reducing organizational bloat.”
- gizmo 3y agoI'm in favor of a stronger social safety net (and the taxes to pay for it).