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I don’t remember when it became normalized for profitable companies to casually execute major layoffs. It used to be a “shameful” last resort that CEOs turned t
by crmd 1y ago
I don’t remember when it became normalized for profitable companies to casually execute major layoffs. It used to be a “shameful” last resort that CEOs turned to as a last ditch effort to save a company facing bankruptcy.
I suspect it’s related to the stock buyback safe harbor rule (Rule 10b-18.) Layoff announcements used to be a sign of a company in crisis, now the stock price often immediately rises, perhaps because shareholders are anticipating a short-term windfall.
- jimmydddd 1y agoThe Wall Street bros love layoffs. They think it makes a company more efficient. They don't see it at all as a problem with management, they just think it's a great idea. So the stock often goes up with a layoff announcement.
- ABS 1y agothere is no lost love between me and Wall Street "bros" BUT it's not their job to run the companies, their job is to buy and sell shares based on results and potential future results. When a company decides to go public and take their money it's still the company's responsibility to run their business and keep the people they took money from in exchange for shares happy.
- sokoloff 1y agoSo, 43 years ago?
- heathrow83829 1y agowell, as productivity per employee increases you need fewer of them. So lay offs can be seen as a sign of a healthy productivity increase. FAANG total headcounts have been trending down for years now (2-3).
- rl1987 1y agoTwitter layoffs of 2022 might have been the Lehman Brothers moment that marked the end of programming gold rush.
- disqard 1y agoI think you're spot-on! It was a first, and then the entire collection of CEOs showcased their herd mentality by jumping on that bandwagon. It's kinda like the anti-poaching collusion that happened... gosh, 10 years ago! https://www.cnet.com/tech/tech-industry/apple-google-others-settle-anti-poaching-lawsuit-for-415-million/ https://www.cnet.com/tech/tech-industry/apple-google-others-... ...only, this time, there's some bullshit "economic headwinds" arguments being advanced as reasons for these layoffs. I remember experiencing actual belt-tightening in 2008-09, where it was disgraceful-but-necessary-to-save-the-company. It's nothing like that this time around.