Article

2022-12-09 Economy

Layoffs: Companies copy others 'in almost mindless imitation,' professor says

[FoxBusinessNews] The number of companies implementing layoffs is growing with most citing challenging economic conditions and recession fears as the driver.

Even with high borrowing rates and persistent inflation, Stanford Graduate School of Business professor Jeffrey Pfeffer noted that companies tend to copy each other "in almost mindless imitation."

"It is a process called social influence—people, including managers look to what others are doing (and saying) in a process of social contagion," Pfeffer said, adding that this can even occur with layoffs.

Dr. Yalda Safai, a psychiatrist based out of New York City, told FOX Business that panic, hysteria and anxiety are contagious.

With recession fears growing, "a lot of the companies, out of panic, started to lay off people," Safai said.

Posted by Skidmark 2022-12-09 00:00|| E-Mail|| Front Page|| [11144 views ] Top

#1 The man who accuses business people of mindlessly following the leader seems to ignore the possibility that they show the same reaction to the data they see because of its nature, and not because of their stupidity.
They are aware that in a depression they will all be in danger. something he seems to believe is incorrect. Is he really wiser than them all at predicting the future?

Posted by i forgot it 2022-12-09 01:22|| 2022-12-09 01:22|| Front Page Top

#2 Gee, most companies file their 'end of year' financial and prospectus reports at the same time. Something to do with legalities imposed upon them by governments at various local, state, and national levels.

With recession fears growing, "a lot of the companies, out of panic, started to lay off people,"

...or maybe it also has something to do with working the numbers on those reports and statements.

Posted by Procopius2k 2022-12-09 07:05|| 2022-12-09 07:05|| Front Page Top

#3 They're all "influencers" - mindless imitators.

Posted by Bobby 2022-12-09 08:22|| 2022-12-09 08:22|| Front Page Top

#4 With ~~recession~~ pandemic fears growing, "a lot of the ~~companies~~ governments, out of panic, started to ~~lay off people~~ declare businesses 'nonessential' and impose mask and lockdown orders," Safai said.

Just like C++ - reusable template code!

Posted by Raj 2022-12-09 09:13|| 2022-12-09 09:13|| Front Page Top

#5 High incomes = increased overhead. Currently at this time degree or highly qualified now targets. When you have built yourself up you don't accept positions of lower incomes. This is hitting hard now. Merry Christmas.

Posted by Dale 2022-12-09 10:02|| 2022-12-09 10:02|| Front Page Top

#6 Companies were stockpiling raw materials and people during the artificial demand spike caused by the governmental Covid stimulus pulled pork potluck. All of the current corrupt spending is being bazooka shot at Ukraine or handed over to “green” initiatives that are the equivalent of lighting the cash afire with respect to economic stimulus. All companies are shrinking inventories to normal levels. Why would there not also be a reduction of the inventory of labor? Can anyone make the case that Musk has whacked a single valuable employee?
During the Covid period where employers were competing against free money to stay home and play video games. Companies were happy to hire employees that could not qualify for unemployment checks because they had no previous record of holding down a job. In an economic downturn there is not a strong reason to hold onto unreliable team members that are being paid at inflated rates. Smaller companies have no need to do layoffs, they can just enforce their attendance policies.

Posted by Super Hose 2022-12-09 12:26|| 2022-12-09 12:26|| Front Page Top

#7 Economies go through down-cycles from time to time and middle-management bloat is trimmed to proper levels. A number of companies that fly to close to the margin lines die. This is made far worse with inflation caused by insane spending on nearly everything.

Professors at Stanford Graduate School of Business should know all of that, but perhaps blinded by the necessity to protect politicians they favor they just can't.

Posted by ruprecht 2022-12-09 15:25|| 2022-12-09 15:25|| Front Page Top

#8 Can anyone make the case that Musk has whacked a single valuable employee?

Leftwing Twitter fans do actually make that argument; I was told the entire accounting department quit rather than work for him, and therefore bills and payroll were not being paid. But the question is what it will look like six months from out, not what it looks like two weeks into the changeover.

Posted by trailing wife 2022-12-09 20:30|| 2022-12-09 20:30|| Front Page Top

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