These companies overhired and now they are realizing that the positive cash flow to justify all of these new employees isn't existing. None of these layoffs are focused on laying off their most expensive people. The severance packages have been very good meaning that the laid off employees have a long time to find another well paying job.
> These companies overhired and now they are realizing that the positive cash flow to justify all of these new employees isn't existing.
This is false in a broad sense - the majority of CEOs plan to increase headcount this year in spite of layoffs. You can find examples here and there where it is true, but in general it is not. There's tons of literature of this readily available, but here is an example from as recently as yesterday: https://finance.yahoo.com/news/ceo-outlook-report-optimism-r...
> None of these layoffs are focused on laying off their most expensive people.
The people you see laid off tend to be newly hired at higher recent market rates or people who have been there a very long time, both of whom are either expensive in a relative sense or an absolute one.
But even that is besides the point. Even if you fire randomly you still see this benefit if you're a CEO.
>the majority of CEOs plan to increase headcount this year in spite of layoffs.
This just means that companies are continuing to hirer. It doesn't mean that they plan on increasing headcount to above where it was before the layoff.
It's so weird to post the first thing that feels like a thought, just to carry water for CEOs who are never going to see you write this, and will never like you, without getting paid for it. 1300s feudal serfdom mindset. And it's everywhere.
If you're continuing to hire past these layoffs, and expanding plans to do so, it's to take advantage of the environment created by the layoffs. If there really was a fiscal crisis you'd also see mass hiring freezes, but we're not seeing that.
> “We expect to end 2023 as either roughly the same size or even a slightly smaller organization than we are today,” said Meta CEO Mark Zuckerberg.
