How did large tech companies end up with the same layoff strategy
Both Amazon and Google ended up executing a half assed layoff strategy. Random teams, principle to entry level, etc. got axed with immediate cut off and no regards for people left holding the bag. Microsoft announced layoffs in the same week. How is it possible that these large companies are operating to the same schemes especially when changing course at large companies is incredibly hard.
All tech companies are in lock step of each other.
That would make sense if they weren’t competitors. My question is more on the same timing and strategy across multiple companies has to be more than coincidence.
They hire the same consultants?
Consulting companies
As in professional sports, it’s a copy cat culture
There is a strategy to the layoffs. 3rd level management and down probably has a quota to fill and they did it the best way possible to preserve revenue.
The companies share institutional investors. Odds are these institutional investors didn’t care about profitability at 0% interest as there was no alternative to stocks. Now they care about profitability and are looking at hc growth wondering if these companies have maintained standards and invested wisely. Part of the reason for insane comp recently was due to fast hiring at FAANG firms. Now that the trajectory is changing investors are getting hungry. IMO twitter is a dry run for the Private Equity playbook that a bunch of firms want to run on tech companies.
FOMO when they hired like crazy during the pandemic, FOMO when they realized it was the wrong decision and need to rightsize.
Stock price is in the gutter and this is the main driver of layoffs. No one calls for layoffs when stock is going up.
Companies have always used the excuse of economic downturns to get rid of people who were a bad fit