Every day there’s more big job cuts at tech and games companies. I’ve not seen anything explaining why they all seam to be at once like this. Is it coincidence or is there something driving all the job cuts?
this post was submitted on 25 Jan 2024
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Overhiring during covid is definitely a major part of it, combined with a slight investment bubble bursting
I don't like calling it overhiring as if it was accidental or something. They didn't hire thousands of people over covid thinking covid would never end, they just knew they could pick up people to fill the role for now and kick them to the curb as soon as they weren't needed.
It wasn't an oopsie, it was by design.
Yeah, here in Germany, workers have stronger protections, laying them off isn't as easy, and I feel like the layoff waves have largely not occurred here, because companies didn't hire so much during the pandemic.
Another factor was the PPP and other "totally not bailouts" that were part of the COVID relief spending.
Of the roughly $800 billion dollars from PPP which was provided as uncollateralized, low-interest loans 66-77% went directly to companies and ~92% of those loans were completely forgiven.. In other words an ~5-600M bailout predicated on keeping positions open long enough to maintain plausible deniability that is what the goal was.
They'll give corporations all the slack and handouts but look at those trying to feed their children and scrutinize every little detail. It's so sad.