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Spotify to axe 1,500 workers to save costs
(www.bbc.com)
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this post was submitted on 04 Dec 2023
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Just as they announced their profitable quarter.
This isn't to "Save costs". It's to further boost profits at any measure, which is what publically traded companies want. Happy investors.
profit has been tasted, now unfettered greed takes over
Do they rehire after the investors meeting?
Maybe not rehire, but many companies will actively continue hiring just as many as they lay off. Citibank did this for years. Announce layoffs of 5,000 employees, stock goes up, but also hire 5,000 with no announcement.
Does it eventually kill the company to do this? In many cases, yes.
I know people who support this philosophy (business owners and investors, of course), framing it as getting rid of the lowest performers. They think 10% yearly turnover is healthy. Morale is so low at the businesses they run they usually don't have to lay off. It's probably more like they lose their top 10% yearly.
Rarely. They'll hire for some teams, but the roles were eliminated to directly reduce their headcount.
Companies want a revolving door of talent, but they also want fewer people...