J. Nathan Matias 🦣Jan 20, 2023

Layoffs:
- don't save money
- don't improve company performance
- don't increase stock pricess
- destroy trust
- have huge impacts on health, well-being, and income of employees

So why do layoffs? It's a network effect: execs lay people off because other companies are doing it

Stanford Biz School article: https://news.stanford.edu/2022/12/05/explains-recent-tech-layoffs-worried/

Harvard Biz Review:
https://hbr.org/2022/12/what-companies-still-get-wrong-about-layoffs

What explains recent tech layoffs, and why should we be worried? | Stanford News

As layoffs in the tech sector mount, Stanford Graduate School of Business Professor Jeffrey Pfeffer is worried. Research – by him, and others – has shown that the stress layoffs create takes a devastating toll on behavioral and physical health and increases mortality and morbidity substantially. Layoffs literally kill people, he said.

Stanford News
Show threadChristoph Kappes :very:
@natematias this is not what the text says. it says e.g. that layoffs do cost but not that they don‘t save money. and the comparison in the text of prosperity of companies with/without layoffs mixes up causalities.
Jan 21, 2023 at 1:19pmMastodon for iOS