That’s not what the article says. The article is saying that was true last year that the hiring spree was over optimistic and needed correction. Now that is not the case, but there’s a weird knock on effect where the market has rewarded this behavior companies keep tightening to continue being rewarded. And there’s a heard mentality where if company A gets rewarded by the market for layoffs, company B faces scrutiny from major shareholders not to do the same.
I think the initial correction of layoffs kind of made sense a year ago, but this article makes me think there is something not cool happening as it keeps continuing.
Q1 profits. It happens to some extent every year between Thanksgiving and early February. It helps the books for Q1. 1rst earnings calls of the year mean more than they should.
There was also a certain level of “denial of talent” competition among the tech giants. Hire any vaguely competent people event if practically useless so the competition doesn’t get them. It works only if you have infinite money (as in 0 interest rates) which is not the case any more.
As others stated a small portion of that was due to over-hiring, some to follow the layoff trend and some to make the earnings call look good.
But from what some experts are saying; there’s also another factor, which is even worse.
There’s a looming threat of a recession hitting in a few months (which is said to be a much bigger recession than the post-Covid one).
And this recession will be tied to the Commercial Real-Estate Bubble.
They are saying that it will be like the 2009 Mortgage Crisis and will be very disruptive.
There’s this theory that companies are reducing their headcount to prepare for this recession by reducing their expenses to the minimum. Which makes sense.
For the companies without savings that is a must but the ugly part is that you see big names with huge amounts of money in the bank laying off people as well.
Well, because they don’t want to invest that money on the people, they will use all that money to buy smaller companies when the recession hits.
All big tech with enough money in the bank is rooting for the recession to happen so they can buy everything for very cheap and grow even more.
I don’t get how there’s any connection. Sure, it sucks to own commercial real estate, or be one of the service companies that grew up to support office work, but isn’t the whole problem being that tech and other large companies no longer want to pay for that? This should be a bonanza for tech companies, saving billions of dollars that formerly went toward renting office space. Why aren’t we expecting a tech company boom?
How much of those were in office jobs versus work from home? I mean, with the whole back to office push, is your job safe in the office or more likely it’s all been just more “cat playing with a mouse”?
You are not logged in. However you can subscribe from another Fediverse account, for example Lemmy or Mastodon. To do this, paste the following into the search field of your instance: !technology@lemmy.world
This is a most excellent place for technology news and articles.
English
People not returning to office.
Based on what?
Execs threatening to fire people who don’t return to office, then firing a bunch of people.
https://nypost.com/2024/01/27/lifestyle/remote-workers-more-likely-to-be-fired/
https://www.washingtonpost.com/business/2023/09/02/return-office-mandates-2023-remote-work/
https://gizmodo.com/amazon-ceo-tells-workers-to-return-to-office-or-fired-1850783235
Not the reasons mentioned.
Watch this, important. https://youtu.be/-653Z1val8s?feature=shared
Because the economy is doing great.
Rich fuckwits’ gambling money
Because they all hired way too many people right after the pandemic and are just realizing they fucked up.
That’s not what the article says. The article is saying that was true last year that the hiring spree was over optimistic and needed correction. Now that is not the case, but there’s a weird knock on effect where the market has rewarded this behavior companies keep tightening to continue being rewarded. And there’s a heard mentality where if company A gets rewarded by the market for layoffs, company B faces scrutiny from major shareholders not to do the same.
I think the initial correction of layoffs kind of made sense a year ago, but this article makes me think there is something not cool happening as it keeps continuing.
WFH made some cool opportunity hires. You could access people in remote areas and pay less.
Market rev is uncertain at the moment. They all want their numbers to come in hot. When everyone else is laying off, so they get less scrutiny.
Could it be…greed?
You don’t say
Americans corporations, greedy? No, surely you jest.
Q1 profits. It happens to some extent every year between Thanksgiving and early February. It helps the books for Q1. 1rst earnings calls of the year mean more than they should.
And when everyone is doing it it’s much easier to do…
Rinse & repeat
There was massive over hiring near the end of covid. So now they are shedding again.
Everyone is cutting headcount, so everyone else is following along. Thinking this must be good we stay competitive.
It’s a pretty US focused issue though, as in European countries you can’t just fire someone like that. There’s definitely more cautious hiring though.
There was also a certain level of “denial of talent” competition among the tech giants. Hire any vaguely competent people event if practically useless so the competition doesn’t get them. It works only if you have infinite money (as in 0 interest rates) which is not the case any more.
As others stated a small portion of that was due to over-hiring, some to follow the layoff trend and some to make the earnings call look good.
But from what some experts are saying; there’s also another factor, which is even worse.
There’s a looming threat of a recession hitting in a few months (which is said to be a much bigger recession than the post-Covid one). And this recession will be tied to the Commercial Real-Estate Bubble.
They are saying that it will be like the 2009 Mortgage Crisis and will be very disruptive.
There’s this theory that companies are reducing their headcount to prepare for this recession by reducing their expenses to the minimum. Which makes sense.
For the companies without savings that is a must but the ugly part is that you see big names with huge amounts of money in the bank laying off people as well.
Well, because they don’t want to invest that money on the people, they will use all that money to buy smaller companies when the recession hits. All big tech with enough money in the bank is rooting for the recession to happen so they can buy everything for very cheap and grow even more.
I don’t get how there’s any connection. Sure, it sucks to own commercial real estate, or be one of the service companies that grew up to support office work, but isn’t the whole problem being that tech and other large companies no longer want to pay for that? This should be a bonanza for tech companies, saving billions of dollars that formerly went toward renting office space. Why aren’t we expecting a tech company boom?
This is probably going to work out to be a global catastrophe.
https://old.lemmy.world/post/11314307
https://old.lemmy.world/comment/7121127
How much of those were in office jobs versus work from home? I mean, with the whole back to office push, is your job safe in the office or more likely it’s all been just more “cat playing with a mouse”?