Tag: Job Reductions

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Big Tech’s Job Eliminations

Over the last six months, several technology companies announced job eliminations. Recently, Customer Relationship Management (CRM) companies were hit hard…

Pegasystems, a software company that specializes in CRM, announced a 4% reduction of its workforce. The company cited the need to “streamline its operations” and focus on key growth areas such as artificial intelligence and cloud computing.

CRM giant Salesforce announced the elimination of about 8,000 jobs worldwide as well as closing some offices. The reductions seemingly focused Tableau employees and there are rumors of more reductions in Salesforce sales teams.

Additional job eliminations in the last 6 months:

As companies reduce their workforce and thus their redundancy, how does that impact their ability to support their customers?

According to Jeffrey Pfeffer, a professor at the Stanford Graduate School of Business, layoffs don’t work to improve company performance. Academic studies have shown that time and time again, workplace reductions don’t do much to reduce costs:

  • Severance packages cost money
  • Layoffs increase unemployment insurance rates
  • Cuts reduce workplace morale and productivity as remaining employees are left wondering, “Could I be fired too?”

The trend of recent tech layoffs highlights the post-pandemic economic reality of labor shortages and the disappearance of cheap money. As organizations focus on streamlining their operations and redirecting resources towards key growth areas like automation, digital, and AI – layoffs and cost reductions will continue to be the reality.

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News You Can Use: 5/20/2020


Photo by Luca Florio on Unsplash

  • Tech Workers Consider Escaping Silicon Valley’s Sky-High Rents

    Christy Lake, chief people officer at San Francisco-based Twilio Inc., says several employees have already approached their managers and HR representatives to discuss plans to relocate. The cloud communications company expects more than 20% of its office-based employees will transition to working remotely in the long term. “It’s percolating big-time,” Lake says. She expects the company will have to come up with formal policies and maybe offer a relocation bonus to employees who decide to make the jump.

    But the trend raises complicated questions. If employees move to a less expensive location, should Twilio adjust their salaries accordingly? “It’s probably not great business practice to pay Bay Area comps in Michigan,” Lake says. And when it comes time to promote, would those employees have the same opportunity to advance as everybody else? “We need to think proactively,” she says.

    https://www.bloomberg.com/news/articles/2020-05-14/tech-workers-consider-escaping-silicon-valley-s-sky-high-rents

  • Why beef is the worst food for the climate

    My family’s trade is butchering and I have been paying attention to the meat global supply chain (it is weird when my job in supply chain and butchering connects in some way, but I always jump at the chance to make the connections). With the meat shortages, there is talk that the beef trade shouldn’t come back in the same way.
  • Hiring and Firing: How to Know When You Need to Let Someone Go

    There are two different spectrums on which people can perform their jobs — willing and able.

    When someone is able to do their job, it means they have the necessary skills, competence and expertise to perform their responsibilities.

    When someone is willing to do their job, it means that they are aligned with the company’s mission and values, and are enthusiastic about their role.

    People will fall into one of the following four categories, and if you can pinpoint where they are, you can figure out whether to let them go or give them the opportunity to improve.

    If an employee doesn’t have the skills to do the job well and they aren’t willing to get better, it’s time to let them go.

    https://www.entrepreneur.com/article/343684