Max KennerlyJan 21, 2023

Layoffs and stock buybacks are usually perceived by investors as savvy business decisions by pragmatic leaders when in reality both are an admission by the board and management that they have no idea what they're doing.

Layoffs are an admission the company doesn't know how to use human resources.

Stock buybacks are an admission the company doesn't know how to use capital.

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

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 threadDavePerrino ✅Jan 21, 2023
@maxkennerly Human capital is expendable in today’s corporate plan. Worker protections in the US pale in comparison to other developed countries. In the meantime, republicans have their masses convinced that taxing corporations is bad for them. It will not change until we #PubliclyFundAllCampaigns.
Show threadEdin 🇪🇺Jan 21, 2023
@DavePerrino @maxkennerly meh, tech workers are still doing way better in US than anywhere in the world. There is way more worker protections here in Europe but I honestly don’t care about it knowing that an american engineer earns twice or even three times the money doing the same work as a European one.
Show threadPatty KimuraJan 22, 2023
@techtraveler @DavePerrino @maxkennerly "Total compensation" package is more than wages. Americans pay for our health coverage, that coverage is lost when you're fired. Avg premium cost for employee with children $22K. Avg family deductible before coverage is $3500. What about paid sick, vacation days? If you only compare wages you aren't comparing apples to apples. There's also out of pocket copays and co-insurance costs.
Show threadEdin 🇪🇺Jan 22, 2023
@pattykimura @DavePerrino @maxkennerly i dont disagree with you, my point is that tech workers are the last to complain. For them this trade between job security and raw numbers very much is worth it. A tech worker in a medium cost of living area in the US can earn triple the salary as someone in spain or france or italy. That easily makes up for the lack of insurance or unemployment benefits.
For other types of labor this of course does not apply.
Show threadPatty Kimura
@techtraveler @DavePerrino @maxkennerly Projections in the tech sector remain good for hiring. Unemployment generally is 3.5%, tech sector less at 2%. But job types are changing from high paying Silicon Valley to less high paying, banking, healthcare, insurance, and gov work. You can still easily find work, but the market is changing and wages will not remain as high on trend in the US. I used to work in hiring, employers are well aware of this trend. But you might find exceptions. Best wishes.
Jan 22, 2023 at 2:45pmWeb