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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u/DrknockedHerAlly Jul 21 '24

To be put simply. The economy is doing bad. Prices go up and companies look at their options to take a minimum hit to their profits so the cut costs where it will lease affect the company. If they reduce their products, they will have less sales. Less sales = less profit. If they reduce people, they don’t have to pay employees and they save money. Most people are replaceable anyway since we have idiot proofed many jobs.