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# What explains recent tech layoffs, and why should we be worried?
- URL: https://werd.io/what-explains-recent-tech-layoffs-and-why-should-we-be/
- Published: 2023-01-06T16:04:08.000Z
- Updated: 2023-01-06T16:04:08.000Z
- Author: Ben Werdmuller
- Tags: #Import 2025-06-13 09:22

“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.” [#Business](https://werd.io/tag/Business)

\[[Link](https://news.stanford.edu/2022/12/05/explains-recent-tech-layoffs-worried/)\]