Reason for layoffs

Stanford Graduate School of Business Professor Jeffrey Pfeffer explains layoffs in the tech sector:

Do you think layoffs in tech are some indication of a tech bubble bursting or the company preparing for a recession?

Could there be a tech recession? Yes. Was there a bubble in valuations? Absolutely. Did Meta overhire? Probably. But is that why they are laying people off? Of course not. Meta has plenty of money. These companies are all making money. They are doing it because other companies are doing it.

Full article at https://news.stanford.edu/2022/12/05/explains-recent-tech-layoffs-worried/

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has Jeffrey ever worked in a real company ?

jeff's explanation is hogwash. there are companies that do layoffs after missing 2 quarters of wall st expectations despite having billions in the bank. it's not about whether the company has enough money to employ those who otherwise would be laid off, it's all about institutional investor greed

This is not far from the truth. Meta's revenue will be slightly less than last year and they will still make tens of billions in profit. The profit decline is because of metaverse spending. Google is thinking about layoffs despite making a few billion or less in profit in 2022. These are the most profitable companies, but are still doing layoffs out of greed. Yes they over hired, but their business is not in a bad situation.

The reason for Meta is just simple enough, a big mistake in high level decision.

It's laughable that they are still trying to act like a recession has not been in play since April of this year when tech, and other sectors, started laying off people.

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Reason for layoffs

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