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[-] floofloof@lemmy.ca 25 points 1 week ago* (last edited 1 week ago)

Meta is doing the exact same thing:

Mark Zuckerberg's social media giant will reportedly hand out roughly 8,000 pink slips on Wednesday, May 20, eliminating about 10% of its global workforce. Notably, though, these cuts will arrive on the heels of one of the most lucrative quarters in the company's history: $56.31 billion in revenue and $26.8 billion in net income for the first three months of 2026...

https://moneywise.com/news/top-stories/meta-layoffs-8000-workers-zuckerberg-ai-spending

[-] ThePyroPython@lemmy.world 18 points 1 week ago

Slashing 10% of your workforce annually is something Jack Welch thought of when he was CEO of General Electric; essentially it shifts that 10% of staff overhead cost straight to profits per year.

The justification they give for the figure is that it's the lowest performing 10% according to internal key performance indicator (KPI) metrics. What this effectively does is two fold:

  1. Anyone who's focusing on delivering stuff the company needs long term isn't always or sometimes never will produce nice neat KPIs that can be measured along with the rest of the company. This means these people are under constant pressure and can often get swept up in the firings.

  2. It makes KPIs, a measuring tool, the target which as any statistician will tell you that when you make the measurement a target it ceases to be a good measuring tool. Because everyone is automatically incentivised to deliver KPIs NOT the actual company deliverables that generate the added value and therefore the profit.

This means after 5 to 10 years of this cycle all that's left of the company's institutional knowledge is how to deliver for KPIs and the sycophants who best adapt to this reality. You get a hollowing out of the company.

If this AI fuelled trend keeps up then companies like Cisco and Meta will eventually implode at some point.

[-] binarytobis@lemmy.world 22 points 1 week ago

I remember the grocery store I worked at started posting the rate for each cashier of items scanned per minute logged into a register. They didn’t say anything about it, but I now realize they were probably leading into using that data as justification for something.

My dumbass 16 year old self thought “I’m going to get that number so high it breaks the system.” I would lock my station after the previous customer, and take a little time to face all of the UPC codes and look up produce codes and make a general strategy. Then, I would unlock the register, scan like a madman, then lock it and casually start bagging. The customers would get concerned they needed to hurry up based on my fervor, so I would tell them “Take all the time you need, see that show yesterday?”

Next time they posted the rankings, my number was 20x as high as second place. After a few weeks of getting my number a little higher each time, my boss’ boss came by and told me to knock it off since I was polluting their metrics. Next week no new rankings.

I like to think I inadvertently helped prevent KPI nonsense.

[-] greybeard@feddit.online 4 points 1 week ago* (last edited 1 week ago)

The grocery store I worked for, over 20 years ago, did something similar, with similar results. All it did was incentivize locking and unlocking the register as optimally as possible. They also tracked how often and when in the transaction you scanned the customer's loyalty card. It was to the point that basically cashiers who wanted to optimize their numbers wouldn't unlock the register until the customer had their loyalty card in hand.

This is the same grocery store chain that almost failed completely due to a impossible sales requirements in their meat department leading to redating meat and bleaching chicken to increase its shelf life. The company claims they never asked any of their meat departments to do anything like that, they just set impossible standards and held people accountable unless they were able to find a way to cheat.

[-] floofloof@lemmy.ca 3 points 1 week ago* (last edited 1 week ago)

It also fosters a culture of non-cooperation with colleagues (because they are now your competition), where workers and teams try to sabotage each other, or at least not help, and throw each other under the bus. So there's mutual mistrust too. And no one wants to take a risk and innovate, leading to further stagnation.

[-] testaccount789@sh.itjust.works 2 points 1 week ago

But that will be a problem for the next guy.

[-] Zagorath@quokk.au 3 points 1 week ago

The justification they give for the figure is that it’s the lowest performing 10% according to internal key performance indicator (KPI) metrics

The thing is, that's not what layoffs are supposed to be. That's effectively firing someone for cause. Maybe in America the difference doesn't matter, but in the civilised world, at least in theory, it does. But in reality they can somehow get away with this and call it "layoffs".

If a company does layoffs, they should not be allowed to hire any staff in the same or similar roles for 12 months.

[-] kent_eh@lemmy.ca 3 points 1 week ago

If a company does layoffs, they should not be allowed to hire any staff in the same or similar roles for 12 months.

The workload doesn't decrease, it just gets spread to the remaining workers who are already overloaded because of the previous round of layoffs...

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[-] assertnull@programming.dev 2 points 1 week ago

makes KPIs, a measuring tool, the target which as any statistician will tell you that when you make the measurement a target it ceases to be a good measuring tool

This came up recently elsewhere and is known as “Goodhart’s Law

[-] Brummbaer@pawb.social 2 points 1 week ago

I think we are already seeing that with Microsoft. Another 2-3 rounds of AI and they forget how to build windows.

[-] WaxRhetorical@lemmy.world 3 points 1 week ago

Are you telling me they ever knew how to build Windows?

[-] stringere@sh.itjust.works 3 points 1 week ago* (last edited 1 week ago)

4x pain + 1 glass

Or, alternatively:

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[-] HootinNHollerin@lemmy.dbzer0.com 15 points 1 week ago
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[-] SnoringEarthworm@sh.itjust.works 11 points 1 week ago* (last edited 1 week ago)

Me, after firing the Cisco CEO: We just made $53 million in revenue!

[-] SocialMediaRefugee@lemmy.world 7 points 1 week ago* (last edited 1 week ago)

Well if you don't have to pay people then yah, revenue will go up for now.

Collect your bonus, get your stock, bail and move to the next job. Sell the stock before the damage you caused rears its head.

[-] Scrollone@feddit.it 3 points 1 week ago

Finance should be banned

[-] Assassassin@lemmy.dbzer0.com 6 points 1 week ago
[-] falynns@lemmy.world 5 points 1 week ago

American Capitalism 101. Sacrifice future growth for immediate profits.

[-] nieceandtows@programming.dev 4 points 1 week ago

What is the logical progression to this kind of a thing. Is there going to be a turning point or is bottom a long long way to go?

[-] wabasso@lemmy.ca 3 points 1 week ago

I’m just brainstorming here, but do layoffs pave the way for hiring new grads at entry level wages, with more cutting edge knowledge?

Sure, that overlooks the loss of tacit knowledge that keeps the company running. I haven’t actually figured out yet how large companies can keep packaging out their senior employees that glue their disorganized systems together with undocumented knowledge.

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[-] Rekorse@sh.itjust.works 3 points 1 week ago

This is just a game to them, they have nothing to lose no matter what happens.

[-] Mwa@thelemmy.club 4 points 1 week ago* (last edited 1 week ago)

my god we have so many layoffs this year.

[-] kent_eh@lemmy.ca 2 points 1 week ago

we have so many layoffs this year.

And the year isn't even half over yet.

Just wait until the full impact of Trump's bullshit works its way through the economy.

The carnage will be felt for a decade or more.

[-] reksas@sopuli.xyz 4 points 1 week ago

dont work hard for companys, better they do more likely you will get laid off with everyone else. Might happen anyway, but if they dont do well they might think they actually need people to do work.

[-] IratePirate@feddit.org 8 points 1 week ago

Who are you kidding?

Record profits > "We need to lay off workers to keep these numbers going up."
Not record profits > "We need to lay off workers to make these numbers go up."

[-] sunbeam60@feddit.uk 4 points 1 week ago* (last edited 1 week ago)

CEO: I need the highest possible performance otherwise the board will fire me.

Board: We need the highest return otherwise we’re not willing to support the CEO.

Fund managers: We need to only invest in the most profitable ventures, otherwise people will move their money out of the fund I’m managing.

Pension companies: We need to only put our money in the most high performing funds.

You: I need the best return on my pension so I can retire as soon as possible.

If you’ve ever moved saved money to an account offering higher interest or performance, you’re part of this. I’m not saying that to blame, but people often don’t connect their own behaviour with the behaviour of the market.

[-] Rooster326@programming.dev 1 points 1 week ago

I agree. The stock market was a mistake

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[-] merdaverse@lemmy.zip 4 points 1 week ago

Most of their profits are paid out to shareholders, like last year, and the year before that. Nobody should expect anything better from any capitalist corporation.

[-] Schal330@lemmy.world 3 points 1 week ago

Can't be expecting the peasants to share in the success of their hard work! Better to fire them and rehire them for cheaper when they are desperate.

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[-] NottaLottaOcelot@lemmy.ca 3 points 1 week ago

The stock market is a weird thing - prices seem to be tied to whether a company can make more this quarter than last quarter, and not tethered to whether a company makes a profit. I figure that they made record revenue and now need a strategy to make even more profit next quarter, which they hope to achieve by reducing expenses via layoffs.

I don’t like it, but the economy is more tethered to speculation than reality.

[-] flandish@lemmy.world 3 points 1 week ago

it’s not weird. it’s literally how capitalism works. it feels weird because it actually feels fucking wrong and disgusting but we are propagandized into thinking this is ok.

[-] anon_8675309@lemmy.world 2 points 1 week ago

It’s a pyramid scheme. You participate long enough to be able to move your money to a more stable platform and live off the measly interest that provides.

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[-] sheetzoos@lemmy.world 3 points 1 week ago

This will continue to happen until sociopath executives see consequences.

[-] Footer1998@crazypeople.online 4 points 1 week ago

Or, you know, workplaces organize and form strong labor unions?

[-] Switorik@sh.itjust.works 2 points 1 week ago

I know someone who worked a weekend event to show case a product and they did extremely well going nearly 15k in sales. They made $50 for the few hours it took to generate that. The amount of effort to prepare for this, drive there, waste weekend hours working is not worth $50. Especially with how much gas is. I don't understand why people don't just say no.

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[-] SocialMediaRefugee@lemmy.world 2 points 1 week ago

Part of me is glad I'm getting the hell out of this system in the near future. My heart goes out to younger people being royally screwed by it and I don't see any way out of it within that system.

[-] lechekaflan@lemmy.world 2 points 1 week ago

Fucking suits.

Shit like this is why I had to learn the trades as backup while I was still in the game, in this case training to be a computer technician.

[-] thatradomguy@lemmy.world 2 points 1 week ago

Cisco can take their campus fabrics/DNA and shove it up their arse. They stopped trying a long time ago and IOS is still a pain to use.

[-] SnarkoPolo@lemmy.world 1 points 1 week ago

You better thank the Job Creators for the right to work, Serfs! Now go gratefully into the gig economy, singing the praises of Tr*mp.

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this post was submitted on 16 May 2026
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