![]() The equation goes that revenue is down so we will have to cut costs to maintain profits. Interestingly, however, there are economists who say that layoffs do not actually help companies save money as they ignore the real problem, which is revenue. Once you get past the severance liabilities then, this can make sense with fewer salaries to pay. The idea behind layoffs is that they save companies money in the long run, even though there’s an initial expenditure of millions or even billions of dollars to pay in severance. This is a really good chart via recent tech layoffs in context: /Uaf6x7YZC5 The current situation is a result of economic cycles and companies seeking to balance their books for this year so that they can start the next financial year in a stronger situation. This has seen tech companies tightening their belts over the last twelve months with economic forecasts indicating that things are unlikely to get better any time soon. There are global factors to take into account here such as the ongoing economic turmoil caused by macroeconomic factors such as rising inflation, a slowdown in consumer spending in a broader context of contracting economies, and the ongoing war in Ukraine. As you can see above, these layoffs have been affecting some of the biggest companies in tech including Microsoft, Meta, Twitter, Spotify, Amazon, and more. The tech sector is experiencing downsizing and layoffs, with over 120,000 tech workers losing their jobs in 2022, which is much more jobs than were lost during the bust of the. ![]() With so many people losing their jobs, however, and so little relatable information coming across through all the multiple statements being put out by the companies that are cutting them, we thought it would be worth looking into it all to try and understand what is going on. ![]() As things have slowed down a little, however, they can’t maintain their workforces at levels they previously thought would be sustainable. ![]() They focus on difficult times during COVID-19 sparking a digital boom that caused an acceleration in hiring practices. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |