Thread regarding PayPal layoffs

Layoffs are expensive

Layoffs are extremely expensive. At a minimum productivity is set back by a quarter, worst case you lose a year in productivity difference because teams are dealing with the fallout. Next comes the hit in morale and loyalty, those are very difficult to regain once it’s lost, you can write off all the team building and morale boosting activities for the next year, they will make very little difference.

Management has it wrong, the greatest asset is not the brand, it’s the people. Without the people building a great product, it doesn’t matter how much you spend on marketing, the brand and the business will suffer. Google focused on talent and technology, spending nothing on marketing and people flocked to its service. Layoffs are extremely short-sighted and very expensive. When layoffs become a frequent activity, you’re no longer building a great company, instead management becomes focused on how to manage cost and disassemble a company.

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Post ID: @XZOMPxt

4 replies (most recent on top)

Yet, investor's are sending their stock price above 100. Irrational exuberance. Smart money sell?

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Post ID: @XZOMPxt-4txh

Impact on productivity depend on team and company. Unless those laid off did nothing all day, there will be some impact. Good companies avoid frequent layoffs. it hurts the culture, hurts the morale, hurts the people laid off and hurts the people remaining they know some day after years of loyal service they will be given a box to pack and shown the door. Good ones will leave company is stuck with lower quality the cycle starts again. Builds bad culture.

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Post ID: @XZOMPxt-4noy

Layoffs reduce your team's productivity by a minimum of 90 days?

Ever work at a small company? You don't have the luxury to mourn for 90 days. Get over the RIF.

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Post ID: @XZOMPxt-3ylr

100% hence the reason management (directors and above are still intact) they will be busy with cost cuts and “disassembling” the company. Bad times ahead for PayPal. Loyalty is down the drain.

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Post ID: @XZOMPxt-xny

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