3 ms·
Bad move from Apple. Classic instance of the sunken cost fallacy fallacy (not a typo). They prefer to cut their losses and forget about how much they spent re
by stephc_int13 3y ago
Bad move from Apple.
Classic instance of the sunken cost fallacy fallacy (not a typo).
They prefer to cut their losses and forget about how much they spent recruiting those people.
Keeping them might seem wasteful on the short term, but such skilled workers could likely be made profitable in a big R&D powerhouse.
But the real cost is damaging their reputation among future candidates and current employees, and lowering their perceived value as an employer.
For the most skilled and efficient engineers, choosing to work for big tech is always a tradeoff, a company like Apple is usually very appealing for the most risk-averse.
- indigobunting 3y agoI still don't see why you need to say fallacy twice.
- deleted 3y ago[deleted]
- zdragnar 3y agoRecruiting employees is a sunk cost. There is a concept that it is a fallacy to maintain the cost because so much has already been spent- in other words, "throwing good money after bad". In this particular case, GP posits that fallacy is itself a fallacy, insomuch as there is no greater opportunity the company could pursue which required laying those employees off. The reputational harm done, among other things, is a hidden cost not reflected in the numbers of their salaries, and surely they could have participated in other R&D efforts, or something along those lines.
- KineticLensman 3y ago> Classic instance of the sunken cost fallacy fallacy (not a typo). They prefer to cut their losses and forget about how much they spent recruiting those people. The Sunken cost fallacy would be to retain those people because of the costs irrevocably incurred (sunk) recruiting them, employing them to date, etc. Apple are (apparently following a theoretical economics position) considering the prospective costs going forward of keeping them, when they no longer have an obvious future revenue stream, and would still generate additional redeployment/retraining costs
- jhardy54 3y agoIn case you didn’t see, the comment you’re replying to says “sunken cost fallacy fallacy”. See-also: https://news.ycombinator.com/item?id=39942634 https://news.ycombinator.com/item?id=39942634