Current Events > Paypal laying off 7% of workforce. 2000 people

(+) Yeah! (+)

https://www.cnbc.com/2023/01/31/paypal-to-lay-off-2000-employees-in-coming-weeks-about-7percent-of-workforce.html

PayPal on Tuesday announced plans to lay off 2,000 employees, or around 7% of its workforce, according to a release posted to the companys website.
President and CEO Dan Schulman wrote in the release that PayPal is working to address the challenging macroeconomic environment. He said the company has made progress focusing resources on core priorities and rightsizing its cost structure, but that there is more work to be done.

https://gamefaqs.gamespot.com/a/user_image/5/6/5/AAefUOAAEJB9.jpg

@Covxy why are corporations laying off after making record profit and also expert analysis says these kind of layoffs actually don't save them any money. I can requote that article of the professor who discussed that if you need to see it.

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

Here, Stanford News talks to Pfeffer about how the workforce reductions that are happening across the tech industry are a result mostly of social contagion: Behavior spreads through a network as companies almost mindlessly copy what others are doing. When a few firms fire staff, others will probably follow suit. Most problematic, its a behavior that kills people: For example, research has shown that layoffs can increase the odds of suicide by two times or more.

Moreover, layoffs dont work to improve company performance, Pfeffer adds. Academic studies have shown that time and time again, workplace reductions dont do much for paring costs. Severance packages cost money, layoffs increase unemployment insurance rates, and cuts reduce workplace morale and productivity as remaining employees are left wondering, Could I be fired too?

What are some myths or misunderstandings about layoffs?
Layoffs often do not cut costs, as there are many instances of laid-off employees being hired back as contractors, with companies paying the contracting firm. Layoffs often do not increase stock prices, in part because layoffs can signal that a company is having difficulty. Layoffs do not increase productivity. Layoffs do not solve what is often the underlying problem, which is often an ineffective strategy, a loss of market share, or too little revenue. Layoffs are basically a bad decision.
Companies sometimes lay off people that they have just recruited oftentimes with paid recruitment bonuses. When the economy turns back in the next 12, 14, or 18 months, they will go back to the market and compete with the same companies to hire talent. They are basically buying labor at a high price and selling low. Not the best decision.
People dont pay attention to the evidence against layoffs. The evidence is pretty extensive, some of it is reviewed in the book I wrote on human resource management, The Human Equation: Building Profits by Putting People First. If companies paid attention to the evidence, they could get some competitive leverage because they would actually be basing their decisions on science.

Youve written about the negative health effects of layoffs. Can you talk about some of the research on this topic by you and others?
Layoffs kill people, literally. They kill people in a number of ways. Layoffs increase the odds of suicide by two and a half times. This is also true outside of the United States, even in countries with better social safety nets than the U.S., like New Zealand.
Layoffs increase mortality by 15-20% over the following 20 years.
There are also health and attitudinal consequences for managers who are laying people off as well as for the employees who remain. Not surprisingly, layoffs increase peoples stress. Stress, like many attitudes and emotions, is contagious. Depression is contagious, and layoffs increase stress and depression, which are bad for health.
Unhealthy stress leads to a variety of behaviors such as smoking and drinking more, drug taking, and overeating. Stress is also related to addiction, and layoffs of course increase stress.

More tech layoffs

WingsOfGood posted...

@Covxy why are corporations laying off after making record profit and also expert analysis says these kind of layoffs actually don't save them any money. I can requote that article of the professor who discussed that if you need to see it.

It's not about that. It's a shell game to make the company appear better for quarterly reporting.

turns out most of the internet was fake

Why did PayPal need nearly 29,000 employees to operate?

WingsOfGood posted...

https://www.cnbc.com/2023/01/31/paypal-to-lay-off-2000-employees-in-coming-weeks-about-7percent-of-workforce.html

https://gamefaqs.gamespot.com/a/user_image/5/6/5/AAefUOAAEJB9.jpg

@Covxy why are corporations laying off after making record profit and also expert analysis says these kind of layoffs actually don't save them any money. I can requote that article of the professor who discussed that if you need to see it.

I read an article saying that once the first company engaged in mass layoffs recently the others saw it as a green flag to follow suit, now they dont want to be left behind on the layoff bandwagon or else the stockholders will get mad at them for being bland. Its class warfare

s0nicfan posted...

Why did PayPal need nearly 29,000 employees to operate?

Companies that operate around the world and are based around technology need enormous amounts of staff. For instance, the support staff for North America could easily have 10k people sheerly because that is the only way to make sure everyone using your product gets support.

s0nicfan posted...

Why did PayPal need nearly 29,000 employees to operate?

probably to make sure the site functions and is secure, deal with issues, customer support, bingo bango bongo

the_pika posted...

Its class warfare

I agree. I think it is concerted effort to suppress wages. Collusion that is.