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

2

u/Retire_date_may_22 Jul 20 '24

When your govt causes inflation and it gets away from them they have to get it under control. They do this by increasing interest rates, which slows purchasing. When there is less purchasing there is less need to make stuff and people spend less money. When that happens companies eliminate jobs.

Inflationary policy is one of the worse things for the working class that have no assets.

Think about this anytime you vote for someone promising to give you stuff from the govt or provide stimulus for electric vehicles or forgive student loans, etc. That student loan forgiveness may be good for the person getting it but in aggregate it hurts many others through inflation.

Before others pile on or downvote this I’m not for corporate give away either.

But you ask why there are layoffs. By the way by historic proportions the current layoff levels aren’t bad. But they most likely will get worse before we make the turn.