Despite what experts are calling a strong economy, there is an unusual amount of layoffs happen right now. More than would be expected based how wallstreet is performing. Especially in the tech industry.
In the past week we have seen large layoffs at Google, PayPal, iRobot, Okta, Zoom, SNAP, Trend Micro and more.
The Washington Post today had a story about Tech Layoffs, and how many senior level people who were laid off over the last year are unable to find jobs in tech. At least anything with a decent salary and have given up and landed jobs in other fields. Widespread layoffs in tech started at the end of 2022 and continue to rempt up with Q1 of 2024 already being entered into the books for worst quarter for job losses in recent years.
Because layoffs are so widespread, there are more people looking for tech jobs than there are jobs open.
One of the major driving factors of tech layoffs has been salary resets. Corporations feel that salaries for workers are too high and not competitive when compared against the global job market. They are looking to optimize their cost structures. Let someone with a high salary go and replace with someone with a lower salary.
Thus people who were laid off who had good salaries are unlikely to find anything that pays at much again if at all.
Another thing being talked about is a lot of these companies have been utilizing other tools to reduce staffing levels to get the high paid workers out the door. And that biggest tool is requiring workers to return to the office. Workers do not want this, and are being resistant when there is no need for them to be in the office, especially when they have moved to the burbs or further away over the last 3 to 4 years when being allowed to work from home. This is driving many to quit, but perhaps an even larger number to be fired.
Tech companies are indeed firing people who do not following the return to the office mandate. And by going this route, they have cause for termination, which means they don't have to offer any severage package, and in many states, don't have to pay into unemployment because these workers would not be eligible to collect unemployment due to being fired for cause.
It blows my mind that it's like that in most places. Here in MA, employers will never fight a unemployment claim because the state will always give it to them anyways. It's not worth the companies time. But in other states, they will and almost always do. In most states if you were fired for cause or performance you are not eligible to collect unemployment benefits.
Do more with less still seems to be the motto. How many years can we keep asking for this out of employees before everything collapses?
In the past week we have seen large layoffs at Google, PayPal, iRobot, Okta, Zoom, SNAP, Trend Micro and more.
The Washington Post today had a story about Tech Layoffs, and how many senior level people who were laid off over the last year are unable to find jobs in tech. At least anything with a decent salary and have given up and landed jobs in other fields. Widespread layoffs in tech started at the end of 2022 and continue to rempt up with Q1 of 2024 already being entered into the books for worst quarter for job losses in recent years.
Because layoffs are so widespread, there are more people looking for tech jobs than there are jobs open.
One of the major driving factors of tech layoffs has been salary resets. Corporations feel that salaries for workers are too high and not competitive when compared against the global job market. They are looking to optimize their cost structures. Let someone with a high salary go and replace with someone with a lower salary.
Thus people who were laid off who had good salaries are unlikely to find anything that pays at much again if at all.
Another thing being talked about is a lot of these companies have been utilizing other tools to reduce staffing levels to get the high paid workers out the door. And that biggest tool is requiring workers to return to the office. Workers do not want this, and are being resistant when there is no need for them to be in the office, especially when they have moved to the burbs or further away over the last 3 to 4 years when being allowed to work from home. This is driving many to quit, but perhaps an even larger number to be fired.
Tech companies are indeed firing people who do not following the return to the office mandate. And by going this route, they have cause for termination, which means they don't have to offer any severage package, and in many states, don't have to pay into unemployment because these workers would not be eligible to collect unemployment due to being fired for cause.
It blows my mind that it's like that in most places. Here in MA, employers will never fight a unemployment claim because the state will always give it to them anyways. It's not worth the companies time. But in other states, they will and almost always do. In most states if you were fired for cause or performance you are not eligible to collect unemployment benefits.
Do more with less still seems to be the motto. How many years can we keep asking for this out of employees before everything collapses?
