The Layoff Lie: Why Companies Keep Doing It Despite the Evidence
2025-03-09
From the airline industry's post-9/11 layoffs to the 2023 tech sector bloodbath, corporate downsizing has become commonplace. Yet, research consistently shows layoffs damage company culture, morale, and productivity, often failing to deliver promised financial gains and even increasing bankruptcy risk. This article traces the roots of this practice back to the 1980s, when shareholder value maximization became paramount, and aggressive CEO strategies popularized mass layoffs. The long-term consequences are overwhelmingly negative, highlighting the need for alternatives such as delaying purchases, reducing hours, or implementing furloughs.
Startup
corporate management