Didn't used to be, except in extreme circumstances. Was seen as a really bad sign.
To the extent there's "science" on this, it's a lot less clear than you might think that a policy of reaching eagerly for the layoff-button is long-term beneficial to companies, i.e. there's a good chance it's a cultural fad, you do it because "that's what's expected" and perhaps investors get skittish if you don't, for the circular reason that... that's what's expected.
Human lives do not work like this. If you're getting married, if you have an unexpected hospital expense, if you want to buy a house -- these are not things that "market cycles" will plan around, but you have to.
Being quick to hire or fire is not the problem. Massive overhiring and massive layoffs are.
I think they have a point. Facebook is making money. Tech is in a very dynamic phase, right now. This is a moment of huge opportunity for them, and one that won’t necessarily be as large in the future.
To be contracting right now, rather than making a play, seems like a lack of leadership.
Maybe Meta missed on those big plays and now there’s too much pressure to make another.
I don’t know if I believe that, but worth considering
if you're making money and you feel that these are good employees, why not take them off the core products and ship them to some other ambituous R&D proejct?
making core products leaner is probably a good, but surely there's some other big moonshot you'd like to take?
If it's not sustainable? Yes. They shouldn't have hired them in the first place then. Such a major round of firing (the second one in only a few months) shows a completely failing leadership.
I'm glad in Europe companies are much more conservative with hiring and firing. Because it's much harder to let employees go and there's strings attached.
Don't forget when you fire an employee you're giving them a lot of stress about their livelihood, you're externalising a lot to society. Internalise the profits, externalise the problems. Typical.
I'm so glad I don't live in the US and that things don't work like that here.
Companies won't spin up risky projects if they can't spin them down. This is why Europe continues to fall behind the US and China.
Accepting the mediocrity is abdicating the leadership of the world to China. If you like that, good for you. But I doubt the low-growth, low-innovation world of Europe will make the next iPhone, AI, or chip.
Oh, and Europe can only do this stuff because of the USA military, by the way.
They make products, sure, but output isn't the same as innovation.
>But I doubt the low-growth, low-innovation world of Europe will make the next iPhone, AI, or chip. >chip
Do you realize that the cutting edge in chip technology is a Dutch company
But it doesn’t fit your ideological narrative of how innovation functions so…
Axing low/negative ROI product lines, sure. But recently these cuts have been across-the-board and in product lines that are net profitable and have strong technical product roadmaps. Moreover they are firing longer tenured (expensive) engineers
I understand they’re managing a transition to a capital intensive strategy but the whole era reeks of stock price focused financial engineering and these large companies flexing oligopoly power in the face of their customers and the labor that builds their technology.
It does seem like a lot of people would prefer this, they way they react to every layoff announcement.
I don't think that those 10% of their workforce were keeping them back, to the contrary, now a big part of the remaining 90% will start wondering (if they hadn't already done so) when they'll be next, that is instead of focusing their minds on this AI-race thing.
I mainly call them problems because hugely scaling your org up and down on a whim is extremely inefficient when your recruiting and onboarding costs are high. Surely it’s more wise to repurpose the people you already have unless you have no time horizon on appropriate new areas of R&D.
What world do you live in? Suicide? Crazy talk.
The other scenario is that Meta doesn’t layoff people. The big fishes will make less money, but won’t affect their lives in the minimum. What about that? That’s not illegal either, but ofc, “that’s not how businesses work!”. So brainwashed. We are the frogs, they are boiling us and you don’t care
Should a company keep someone on payroll and have them do nothing until profit reaches 0?
Secondarily layoffs don’t happen the way you say: they are across the board and when you are talking of 10% of a company there is no real way of targeting the inefficient people. More than anything is fiscal engineering: you need x amount, you fire people and then you rehire 75% offering less equity and at lower levels imposing more work on the remaining employees
And yeah, this approach to layoffs is sound. Been there, done that.
I was thinking the exact same thing. This makes them look pathetic.
Meta is very selective in their hiring process. If they can't figure out how to use these incredibly talented and driven people, then that's a failure of leadership. How do they not have an enormous backlog of promising and interesting ideas to pursue?
They've got the cash, they've got the people, they just don't have any imagination or ambition. Better management would see the current situation is an opportunity, not a problem.
That's only one of many things layoffs can mean. In this case, Meta seems to be laying people off so that it can make a bigger bet on its AI programs (which I assume are deeply unprofitable right now) at the expense of other lines of business.
I think this is essential to the disagreement in this little part of the discussion.
Ending a product line and laying off the people who worked on that product line aligns more to your "profitable work for a set of people" phrasing. But a great deal of tech sector layoffs happen as a blanket action, not targeted at specific products, teams, or roles. Business units are directed to find X% to cut. When the business is making money, these blanket actions can feel pretty unfair to the affected employees. The decision to lay off any specific individual could be completely disconnected from the value that individual provides to the business.
Isn't the obvious answer yes for everyone that sells their labor?
If I gave you the choice between being an employee in an economy where it is more difficult to land a job, but you could be sure that job would last, or an economy where it is easier to find a job, but it was completely insecure, I think most would choose the former. No? Worring about finding work while looking, or worrying about it all the time? Seems obvious.
Based on your logic we should make it impossible to fire anybody. That surely will solve our problems, right?
I want a dynamic, innovative economy where anyone can find a job if they work hard. Not because the law says they can't be fired. How depressing.