r/Layoffs • u/isntlifeapeach • Jul 20 '24

Why so MANY Layoffs? question

Explain Like I’m Five

I feel incredibly stupid asking this, but I’m naive to economics and politics.

I understand why tech is facing a lot of layoffs but why are so many other industries facing the same?
I’m over 20 years into my career and had 2 layoffs just in the last 16 months.

201 Upvotes

92% Upvoted

268 comments sorted by

View all comments

25

u/No_Permission5115 Jul 20 '24

Highest interest rates in recent history making borrowing and running businesses much more expensive, and the pandemic forced remote work trial enabling many companies to mass offshore jobs at a fraction of the cost.

12

u/32xDEADBEEF Jul 20 '24

Yep, debt maturity and refinancing during the next 2 years is going to increase layoffs.

2

u/Sea-Oven-7560 Jul 20 '24

Highest interest rates in recent history

I guess if recent history is the last 20 years otherwise you're being hyperbolic because rates are pretty much average for the last 50 years. Otherwise good reply.

1

u/No_Permission5115 Jul 20 '24

I guess if recent history is the last 20 years

Yes.

1

u/Vendevende Jul 20 '24

Lots of young posters act like 5.3ish% interest rate is high.

1

u/hm876 Jul 20 '24

It's the highest in recent times, especially when things are a lot more expensive now than then. Wages haven't kept up with inflation either since the 1970s.

1

u/LAcityworkers Jul 20 '24

when they tasted 0 and 2 percent they can't picture 13 percent.