Employees create your sales. If there’s redundancy in job tasks then firing people can increase profits, but massive layoffs is mainly just reducing output capabilities.
few people to do work = few profits
In the span of a year or two this can increase profits because costs have gone down, but pretty soon the company will run out of its backlog and then profits will tank in a way that can’t be recovered from for years
Every person you fire without leaving a replacement is a loss of information and institutional knowledge. Like lobotomizing a person. Layoffs kill a company’s ability to perform. Tesla won’t exist as it is know in 2 years. Unlike software, that can continue to exist in a zombie way with whatever was left written run by a skeleton crew. Production companies instead tend to implode.
When the company you work for is describing its future plans as “4th week of job cuts.”
That company might be in a death spiral.
Employees create your sales. If there’s redundancy in job tasks then firing people can increase profits, but massive layoffs is mainly just reducing output capabilities.
few people to do work = few profits
In the span of a year or two this can increase profits because costs have gone down, but pretty soon the company will run out of its backlog and then profits will tank in a way that can’t be recovered from for years
Every person you fire without leaving a replacement is a loss of information and institutional knowledge. Like lobotomizing a person. Layoffs kill a company’s ability to perform. Tesla won’t exist as it is know in 2 years. Unlike software, that can continue to exist in a zombie way with whatever was left written run by a skeleton crew. Production companies instead tend to implode.