this post was submitted on 29 Jan 2024
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Nearly 25,000 tech workers were laid off in the first weeks of 2024. Why is that?::undefined

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[–] Copernican@lemmy.world 27 points 9 months ago (1 children)

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.

[–] KevonLooney@lemm.ee 13 points 9 months ago (1 children)

The "rewarding" theory is probably true. That's why so many people were hired to begin with. Boards were like "if we don't hire, we'll fall behind!" So they over-hired. Now they're like "we can easily hire more later. Fire these losers."

So you basically trained a ton of people on your internal systems and let them go? And you think randos will be able to pick up the slack when you need them in 12 months?

These companies are so dumb. Aren't they growth companies? Don't they have moonshots to work on or any good ideas for the future these people can contribute to? It's like they became big and lost the ability to innovate.

[–] JeffKerman1999@sopuli.xyz 5 points 9 months ago

It's because when they become big the people on the board become less tech oriented and more business oriented, that means no vision other than next quarter numbers...