Nasdaq is up 22% since the lay off storm started 6 months ago. Tech stocks have been rallying hard since then. Now tech companies will have more incentive to do more lay offs to pump their stock.
I agree with this, especially when it comes to salaries being depressed as well. The stock goes up due to laying people off, and costs are kept low due to rehiring the same or new employees to do the same work. Just today, a recruiter mentioned FAANG layoffs and the fact that people from FAANG tend to demand higher salaries, despite the fact that I’ve never worked for FAANG. This was after I threw out my expected hourly rate and salary after conversion for a contract role. These layoffs have a ripple effect, and it’s only going to get worse before it gets better. TC: 90K
It will never get better in next 30 years.
This is the spirit of capitalism. Capital is much more important than labour. We had labour unions to induce some balance, but they have been fought to death by capital. Milton Friedman's extreme axiom of "a firm's only purpose is to make profit for its owners (i.e. capital)" is practiced by most companies. For a while I thought new Tech companies would change this, but I am proven terribly wrong by the likes of Meta, Amazon, amd Google.
As companies continue to cut labor, the stock market is on the rise. However, it's important to note that human capital represents the largest expense on a company's balance sheet, and this trend of cost-cutting is unlikely to come to an end anytime soon. FAANG or not, it’s time to evaluate how you personally contribute to the bottom line.
There is a chance we haven't seen the end of it. If Core CPI was back to 2 percent, I could agree. Right now it is at 5.5% annualized. The layoffs will continue until inflation improves. At some point, these layoffs will cut past the fat and into the bone.
How much fat is left
You’re wrong. Look at the data today: The consumer-price index came in at 4.9%, slightly less than the 5% from March and better than economists surveyed by The Wall Street Journal had expected. https://stocks.apple.com/AyurNshzJTu25p6iFuTq-GA
So true
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Models in Spreadsheets rule the world. Rest is facade. Hard work, intelligence etc are ruse.