“In those days, layoffs were used as a last resort: in mergers or extreme financial hardship. Today, they are ubiquitous. In 2023, U.S. layoffs were 98% higher than 2022. And 2024 is not far behind. January felt like open season on employees–especially in the tech sector–with the second highest January layoffs in the past 15 years.
The numbers are staggering, given that the wisdom of layoffs is questionable. Established research has associated downsizing with decreased profitability, especially in research-intensive, high growth and capital-light industries. And mass layoffs damage not only the health and finances of those laid off, but also the long-term vitality of their communities.
But recently there’s something even more sinister afoot. Instead of resisting them, companies with strong balance sheets are actively choosing layoffs–in significant numbers. Meta’s recent earnings report might be the most egregious example: their 25% increase in earnings last year was accompanied by a reduction of 22% (or 19,000) of their employees. And CEO Mark Zuckerberg collected $700 million in dividends. Whether the intention is to amplify earnings, or to earmark funds for AI or other non-human investments, the danger of manipulating headcount as a financial management tool has reverberating and irrevocable consequences.”
https://www.forbes.com/sites/annkowalsmith/2024/02/13/3-reasons-why-this-season-of-layoffs-may-destroy-the-future-of-work/