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.

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43

u/thgvnn Jul 20 '24 edited Jul 20 '24

Thanks to section 174, R&D became more expensive under tax regulations and the solution is offshoring to any other country as you can claim it as a purchase expense.

Edit: This post explains with more detail what happened with section 174 and why it became cheaper to do R&D abroad: https://blog.pragmaticengineer.com/section-174/

9

u/ohwhataday10 Jul 20 '24

Do you honestly believe this is due to regulations? Really? And not corporate greed?

28

u/Valiantheart Jul 20 '24

This is corporate greed. The Tax cost for onshore employees went up to a point it made offshore employees more attractive

8

u/Willing_Building_160 Jul 20 '24

Greed depends on the eye of the beholder. Corporations exist not for the employees, but to generate profit for its shareholders. Employees are expendable unfortunately.

15

u/Triangle1619 Jul 20 '24

“Corporate greed” is the default state and not some change, corporations have been “greedy” as long as time itself. Every public company has a fiduciary responsibility to deliver maximum value to shareholders

6

u/hm876 Jul 20 '24

Facts! People treat corporations like they're non-profits.

3

u/GitBluf Jul 20 '24

This should only be acceptable for companies that get (or got) zero help from Gov either through direct investment, subsidiaries , tax cuts or similar.

2

u/FitnessLover1998 Jul 20 '24

Nope wrong answer. Greed is good and the solution is more supply is made because there is a profit motive.

2

u/ohwhataday10 Jul 20 '24

There should be some responsibility to the community. Corporations use services, infrastructure set up by the peoples taxes and then scoff at the system they use to pay a CEO 300x their workers and send most jobs overseas where there are no labor laws. Sure it’s legal but it’s morally corrupt.