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?

  • MostlyGibberish@lemm.eeEnglish
    0·
    8 months ago

    One factor I haven’t seen mentioned is that because of rising interest rates, tech companies have had to shift from being focused on growth to actually turning a profit. Because of this, companies are having to shed employees because they over hired in anticipation of that continued growth. People are expensive so that’s an “easy” way to try to get the line closer to positive.

    This is kind of a rough overview and I’m by no means an expert on economics. Just someone who works in tech and so has been following things closely.

    • davel@lemmy.mlEnglish
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      8 months ago

      Michael Hudson, Jun. 2022: The Fed’s Austerity Program to Reduce Wages

      To Wall Street and its backers, the solution to any price inflation is to reduce wages and public social spending. The orthodox way to do this is to push the economy into recession in order to reduce hiring. Rising unemployment will oblige labor to compete for jobs that pay less and less as the economy slows.

    • henfredemars@infosec.pubEnglish
      0·
      8 months ago

      It also takes time to realize the costs of shedding workforce, and by then you might have a different CEO. As long as it’s next quarter, it’s fine.