Read more at source.
Read more at source.
One of the key factors driving these layoffs is a shift in how investors are evaluating companies. Previously, companies were often evaluated based on their growth and profitability. However, there has been a shift towards a more holistic evaluation that takes into account a range of factors including operational efficiency and long-term sustainability. This has led some companies to implement layoffs as a means of improving these metrics, despite a lack of evidence that such measures can solve any underlying problems.
These layoffs have had a significant impact on the tech industry. Tens of thousands of tech and gaming employees were laid off in 2023, and the trend has continued into 2024. This has led to a great deal of uncertainty and instability within the industry, with many employees unsure about their job security.
Companies have responded to these layoffs in various ways. For example, Microsoft has been reported to have let go of some employees citing lack of performance. When asked about this, Microsoft spokesperson Frank Shaw stated, '...When people are not performing, we take the appropriate action.' However, some of the laid-off employees reported receiving no severance, raising questions about the fairness and appropriateness of these actions.
One reason for the layoffs is that investors have changed how they're evaluating companies, even if there's a lack of evidence that the layoffs can help solve any of the problems they may have.
